How banking has changed, in the space of just one generation. From having to visit a bricks and mortar bank and writing cheques, to ATMs and EFTPOS, to online banking and NFC technology, many transactions are now cashless.
|According to the Australian Payments Clearing Association (APCA), use of cheques in Australia declined almost 43% between 2010 and 2014.
Over the last 10 years, cheque use has dropped 71%.
APCA’s Milestones Report, released April 2016, found that in 2015, the total number of ATM transactions reduced by 5.5% and by 1.7% in value compared to 4.7% and 1.7% respectively in 2014. Since 2005, ATM withdrawals have dropped by 11.5% but increased 5.1% in value.
What types of transactions are we making?
Digital is it, with both direct entry and payment card transactions increasing in volume and value over the past 12 months.
Direct entry values increased by 3.5% in 2015. Since 2005, direct entry transactions have increased by 70.2% in value.
Debit card and credit card transactions grew by 6.8% in value in 2015, compared to 7.2% in 2014. Since 2005, payment card transactions have increased by 116.7% in value.
According to the Reserve Bank, we made the following types of transactions in July 2016:
|Credit Cards||195 million transactions, $24.4 billion of value|
|Debit Cards||402 million transactions, $20.9 billion value|
|Cheques||8.1 million cheques drawn, $45 billion value|
|Cash ATM withdrawals||54.6 million ATM cash withdrawals, $11.5 billion value|
The pace of decline of “traditional” payment methods, cheques and cash to a lesser extent, reflect the increasing uptake of electronic payments. Technological advances have provided new, convenient and cheaper ways of going about everyday banking activities.
Contactless payment readers are pretty much expected by shoppers and online shopping continues to be eagerly embraced and the once-humble mobile phone is now a digital wallet. Banking apps have reached a new level of sophistication, with smartphones linking to ATMs to enable cash withdrawal without the need for a card.
The digital genie has been let out of the bottle and there’s no going back.
So – what should consumers be looking for when it comes to their everyday banking needs? CANSTAR has crunched the numbers on transaction accounts and credit cards to announce the Bank of the Year – Everyday Banking Award and Customer Owned Institution of the Year – Everyday Banking Award. You can download the Everyday Banking Award report here.