The future of banking.

[srg73]

So Lloyds is shedding 3000 jobs and closing loads of high street branches. They are suggesting it is due to changes of banking habits with much more internet banking etc and returning their dividend back to a healthy position. Finally the Brexit has not helped.

 

I can understand the reasoning behind the move however obviously other banks will follow meaning many people will be without a local branch and unable to access cash. This may accelerate the end of cash?

 

The UK banking market seems to be moving more towards the Australian model, don't care about the customer and who cares if you have to travel to city centres to visit a bank!

 

Sorry banks provide a service using our money, if they are not there then what do we do? I maybe a little old fashion but I like to sit down with somebody from my bank if I have a large financial decision to make. Moving to Brisbane a couple of years ago it was one of the shocks being the lack of care, number of charges and limitations imposed by the high street banks. We were AAA+ rated in UK but having to start from fresh here with no account to our history!

 

Any new arrivals, choose carefully as the whole global banking system seems to be changing very quickly.

 

S

[Parley]

The reality is that it is very rare to need to visit a bank branch for the majority of customers.

 

Cash is becoming used more rarely too for small transactions.

 

Nearly all transactions are electronic, including paywave for small transactions.

 

Cards may also die out as Apple Pay and Android Pay are now being used to pay using a mobile phone.

 

If you are still going into a branch and queueing up to talk to a teller you are either extremely old or pretty unusual in your banking needs.

 

These days the branches are more set up for customer to talk to people about lending and new banking products.

 

 

Having said all that, Australia is probably grossly over serviced in terms of banks.

There are branches everywhere and we don't really need about 15 different banks we can choose from either.

Edited July 28, 2016 by parleycross

[srg73]

Competition is good however some banks are not actually high street banks, we have at least one in Brisbane CBD which is a Chinese Investment Bank which allows foreign investors access to the Brisbane market. A friend enquired, not a single AU$ is held.

 

UK will develop into a banking market more like AU, plenty of banks in cities just nothing in the less profitable country areas.

 

S

[Ken]

I can understand the reasoning behind the move however obviously other banks will follow meaning many people will be without a local branch and unable to access cash. This may accelerate the end of cash?

 

 

No, in order to access cash you need an ATM not a branch. There are plenty of ATMs that are away from branches. This will merely increase their number. The use of cash is of course dying out (any large pile of cash these days is assumed to be the proceeds of crime) but that's not going to be affected by the number of bank branches.

[srg73]

No, in order to access cash you need an ATM not a branch. There are plenty of ATMs that are away from branches. This will merely increase their number. The use of cash is of course dying out (any large pile of cash these days is assumed to be the proceeds of crime) but that's not going to be affected by the number of bank branches.

 

And increase their costs to use them in order to maintain them too? Au banks charge for ATM use, to call a call centre never mind visit a branch! You are in Melbourne, try find an ATM in a small country town, impossible unless you pay stupid fees.

 

Banks don't like cash so are now charging for them handling it, they simply want computers to run our accounts using virtual money.

 

S

[NicF]

And increase their costs to use them in order to maintain them too? Au banks charge for ATM use, to call a call centre never mind visit a branch! You are in Melbourne, try find an ATM in a small country town, impossible unless you pay stupid fees.

 

Banks don't like cash so are now charging for them handling it, they simply want computers to run our accounts using virtual money.

 

S

 

Au banks only charge you for using ATMs that are not their own. If your bank is charging you to use it's ATMs then you need to change banks. Some banks have partnerships with others and don't charge you for using their ATMs either. And I believe ING don't charge you for using any ATM regardless of who it belongs to. You can also access cash from the supermarket. I'm pretty sure you don't even have to buy anything but I've never got cash this way.

[Thom]

I don't know about you, but I get most of my cash from a cashpoint machine, or cash back on purchases.

 

Very little need for cash these days.

[Wooba]

Having said all that, Australia is probably grossly over serviced in terms of banks.

There are branches everywhere and we don't really need about 15 different banks we can choose from either.

 

In Canada over the last 20 years or so the 5 major banks closed a lot of the smaller branches that were scattered all over the place. They built far fewer new, fairly large branches instead. I suspect Australian banks will follow suit.

 

That said, I've been with a supermarket based online only bank for around 20 years. In person banking is a total hassle.

 

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[Ken]

Au banks only charge you for using ATMs that are not their own. If your bank is charging you to use it's ATMs then you need to change banks. Some banks have partnerships with others and don't charge you for using their ATMs either. And I believe ING don't charge you for using any ATM regardless of who it belongs to. You can also access cash from the supermarket. I'm pretty sure you don't even have to buy anything but I've never got cash this way.

 

Woolworths let you draw out cash without buying anything - although I normally am buying something with my credit card (while using my debit card to draw out cash) as why would I be in Woolworths otherwise? I don't think the other supermarkets do.