Australians are leading a digital revolution, embracing technological advancements in banking at unprecedented rates, according to a new report commissioned by the Australian Banking Association (ABA) and prepared by Accenture.
“Customers are continuing to shift to convenient digital banking channels,” ABA CEO Anna Bligh (pictured above) said.
Between 2019 and 2023, banking interactions grew by 37%, driven by increasing online and app usage.
See LinkedIn post here.
Digital payments have surged, with major bank customers making $126 billion in payments via mobile wallets in the last year—a 35% increase from the previous year.
For the first time, mobile wallet payments have overtaken total ATM cash withdrawals.
“The booming digital economy presents many opportunities, but it doesn’t come without risks,” Bligh said.
Digital banking interactions now account for over 99% of all customer interactions, with a 37% growth since 2019.
“Australians are interacting with banks more than ever before,” Bligh said.
Banks are proactively protecting customers from scams through interventions such as the National Anti-Scam Centre and measures to limit transactions to high-risk cryptocurrency exchanges.
Monthly scam losses are trending downwards, demonstrating the effectiveness of these measures.
“The digital revolution has increased opportunities for scams, but government and bank interventions have seen a reversal of the upwards trend,” Bligh said.
Despite higher interest rates, Australia's economy shows resilience.
Total commercial lending grew by 6.5% between April 2023 and 2024, with small and medium businesses accounting for half of the total business lending.
Lending to the construction industry comprises 33% of industry lending.
Despite higher mortgage repayments, more than 98% of mortgage holders continue to pay on time. However, 1 in 20 households report difficulties meeting expenses.
“Banks remain alert as some people find it difficult to keep up with their financial commitments,” Bligh said.
Most Australians manage to meet their expenses despite financial pressures. However, banks are ready to help those facing difficulties, with increased hardship support in early 2024.
“Banks will continue to invest where their customers need them,” Bligh said.
Australia maintains a higher branch density compared to global peers, with 19 bank branches per 100,000 adults. For regional customers, Bank@Post provides over 3,400 face-to-face banking access points.
Consumer Data Right (CDR) adoption
Despite significant investments, uptake of the Consumer Data Right remains low, with less than 1% of customers sharing their data.
“Government and industry have made significant investments in CDR," Bligh said.
Decline in cash and cheque usage
Cash use has declined substantially, with a ~10% year-on-year reduction since 2007. Cheque usage has also fallen, with a 37% decline in the number of cheques drawn in the last year.
“The use of cash for legitimate transactions is expected to continue to decline,” Bligh said.
Get the hottest and freshest mortgage news delivered right into your inbox. Subscribe now to our FREE daily newsletter.
