What’s got your goat? Bank won’t accept cash over the counter

Wednesday, 24 April 2024

Phil Parker was “bewildered” when the bank near his business wouldn’t take his cash.

What’s the issue?

Phil Parker, a small business owner in Auckland’s New Lynn, was “bewildered” when the bank near his auto care business wouldn’t take his cash.

When Parker made the 50-odd metre walk from his business to the Kiwibank in LynnMall, he was surprised the bank didn’t accept over-the-counter cash deposits.

He was told he could use the ATM outside, but his card had a crack in it and therefore didn’t work in the machine.

Parker then had to go to a bank further away to deposit the cash.

“So I’ve gotta close the business, go a couple of suburbs away to try and find a bank and join the queue and all the rest of it to deposit some cash.”

Parker said the bank stopped accepting cash over the counter, to only taking cash deposits via its ATM machines, when the bank relocated inside the mall.

It was the first time he had been to a bank that didn’t accept cash over the counter.

“Surely that is what your bank is, they are there to take your money and look after it. That’s the whole idea of what a bank is.”

This story is part of Stuff’s What’s got your goat, NZ? series, which examines the issues on the minds of our communities. You can contribute here.

What did Kiwibank say?

A Kiwibank spokesperson said it had seven automated cash branches across the country, including its LynnMall branch.

These branches provided the same services as its other branches, except for over-the-counter cash withdrawals and deposits. Customers could deposit and withdraw cash notes via an ATM.

Kiwibank had the largest physical network of banking services in Aotearoa, the spokesperson said.

“We have 57 branches and 91 Local for Kiwibank agents. All our Local for Kiwibank agents accept cash deposits (including both notes and coins) and there are five Local for Kiwibank agents within about a 11km radius of our LynnMall branch.”

Should banks be required to accept over-the-counter cash deposits? Let us know your thoughts in the comments.

The way customers used its branches had changed dramatically during the past 10 years, the spokesperson said.

“Over-the-counter transactions have rapidly declined and increasingly customers are turning to our digital banking services, such as our internet banking and our mobile app.

A Kiwibank spokesperson says it has the largest physical network of banking services in Aotearoa.

“The way our business customers are using branches is changing too. Increasingly more are depositing cash using third-party cash pickup services, while others are choosing to go cashless.”

How common is it for banks not to have over-the-counter deposits and withdrawals in NZ?

ANZ

ANZ’s Ferrymead branch in Christchurch is the only ANZ branch that doesn’t offer over-the-counter cash deposits. However, it has a Smart ATM on site, plus a fast deposit drop box for businesses, so there is still the ability for customers to deposit and withdraw cash. All other ANZ branches offer over-the-counter cash deposits.

ASB

ASB has four branches in New Zealand that only accept cash deposits through the ATM. Its teams are available to assist customers with this process.

Westpac

All Westpac branches accept cash deposits over the counter during the week. Post-Covid, its branches open over the weekend have operated on a cashless basis, however these branches all have smart ATMs, providing cash deposit services 24/7.

It also has three HelpStation sites in Mt Roskill, Rolleston and Queenstown Junction that offer face-to-face appointments with bankers without a teller service. Customers visiting a HelpStation are still able to deposit cash through a smart ATM onsite. Westpac’s first ‘cashless’ HelpStation opened in 2012.

A Westpac spokesperson said smart ATMs can be an easier way of depositing cash than over the counter, and in some situations branch staff may offer to take customers to a Smart ATM and show them how to use it. However, customers can still choose to make their deposit over the counter if they wish, the spokesperson said.

BNZ

Suzanne Gudgeon, head of cash services at BNZ, said smart ATMs were introduced at 28 branches where it observed a significant decline in traditional over-the-counter cash transactions, largely due to a shift towards online and digital banking.

These machines provide a simple and convenient way for customers to deposit and withdraw cash, Gudgeon said.

The change had enabled BNZ to redeploy its bankers to branches or areas where their expertise was more in demand, ensuring that personalised support was available for customers who value face-to-face and phone banking.

“At BNZ, we're committed to providing our customers with convenient access to cash deposits and withdrawals.

“None of BNZ's 96 branches across New Zealand are cashless, but the way we offer cash services has evolved in response to changing customer preferences.”