Half a million mostly older Australians set to lose this banking service
Do you like the security of using a bank passbook? Then we have bad news for you. They’re about to be relegated to the ‘customs of yesteryear’ heap.
Almost half a million Australians are being contacted to advise them that passbooks will no longer be accepted by the big banks.
The Australian Banking Association has announced that the big four banks, plus major regional banks including Suncorp, Bank of Queensland, Bendigo and Adelaide Bank, are scrapping passbooks.
Australian Banking Association CEO Anna Bligh says the move to offer debit cards to passbook users was important in keeping older people connected.
She said: “The industry has recognised that as a result of the government’s social distancing advice, particularly for older Australians, we must provide additional options for people to do their banking and pay for goods and services.
“We understand that some people who haven’t used a debit card in the past might have concerns over safety and security. However, they should rest assured that it’s safe, it’s secure and you can track your spending.”
The debit cards will be free and banks will bear the cost.
ANZ has 7000 passbook users and the Commonwealth Bank has almost 400,000.
A cashless society is definitely on the cards. There will come a point when the cost of maintaining the infrastructure to support cash transactions is no longer affordable for banks and other financial institutions. In some ways we can see the beginnings with Covid-19 fears of the virus spreading through the use of notes and coins and more and more people demanding contactless payments, exactly the catalyst to start the ball rolling in that direction.
The drawback as I see it is, many people may not be ready to deal with this new “society” and milliions can be at the risk of exploitation. Banks, governments and technology companies will need to work together to protect the most vulnerable, and ensure the elderly are protected. Making the transition as smooth as possible will take some planning, but in my opinion it is necessary.