Latest news with #BigFourBanks
Daily Mail
4 days ago
- Business
- Daily Mail
Sacrifice Aussies may need to make if they want to keep using cash
Australians may have to go back to paying fees again for using rival bank ATMs like they did a decade ago if they want to keep having access to cash, a finance expert says. The Big Four banks in 2017 agreed to scrap those $2 fees for customers who used the automatic teller machines of a competitor. While it was regarded as good news, that policy is threatening the future of cash in Australia with very few consumers now using banknotes to pay for everyday goods and services. Australia's key cash-in-transit company Armaguard, owned by billionaire transport magnate Lindsay Fox's family, needs $50million a year in handouts to survive and now federal regulators are proposing Australia have a new minister for cash. In just seven years, the number of ATMs have more than halved, plunging from 13,814 in June 2017 to just 5,476 in June last year, Australian Prudential Regulation Authority data showed. The Commonwealth Bank , Westpac , NAB and ANZ used the abolition of rival ATM fees to take away those cash dispensing machines and squeeze Australia's cash-in-transit companies during contractual negotiations. This has made distributing cash unprofitable with the Big Four banks, supermarket giant Woolworths and retail group Wesfarmers - the owner of hardware chain Bunnings, Kmart and Officeworks - last week announcing they would provide a $25.5million lifeline to Armaguard from July to December. Jason Bryce, the founder of Cash Is Welcome, said Armaguard wouldn't need to be subsidized by the banks and the supermarkets if those old fees for using rival ATMs still existed - and generated $500 million a year in revenue. 'I think it was a bad, short-sighted move - I don't want to prescribe the answers - but the problems date from that decision,' he told Daily Mail Australia. 'There's no doubt the $2 ATM fee for customers of other banks kept the cash distribution system paid for and viable in Australia - since 2017, since that decision, the cash industry has contracted and been under pressure. 'There needs to be some kind of structural change to provide support, go forward, to cover the $50 million-odd per year that Armaguard is now getting. 'There should be no need for $50million a year - the problem has been created by the banks and the supermarkets.' Mr Bryce said the abolition of those rival ATM fees had led to the big banks putting extra pressure cash deliverers, to the point that Spanish group Prosegur in 2023 merged with Armaguard to survive. 'The two big companies have merged into one and that one company is on the verge of bankruptcy,' he said. Peter Fox, the executive chairman of Armaguard, told The Australian Financial Review its 'shortfall in revenue' was 'caused by the four major banks and two retailers which slashed their margins to Armaguard in a period of cut-throat competition'. Commonwealth Bank chief executive Matt Comyn last year admitted the banks were 'very, very aggressive' towards Armaguard. 'The banks drove Armaguard to the brink of bankruptcy,' Mr Bryce said. 'Matt Comyn says the banks underpaid Armaguard for cash-in-transit.' 'It's really up to the banks to pay more. 'So banks now don't really have much of a leg to stand on when they complain about handing over $25million for six months.' The disappearance of major bank ATMs saw the appearance of third-party ATMs that charge $3 fees for use. 'There's less bank-owned ATMs and there's more third-party ATMs that charge $3 or so,' Mr Bryce said. The Council of Financial Regulators - which includes the RBA - and the Australian Competition and Consumer Commission is proposing a new federal minister in charge of cash distribution who would have oversight over a registered entity that would 'provide critical cash services to a significant part of the market'. 'Despite the rise of digital payments, cash remains vital for many Australians, particularly in regional and remote communities,' it said in a consultation paper. 'Cash supports secure, inclusive, and resilient transactions for those who prefer or rely on it.' The federal government last year announced a cash mandate would be coming into force on January 1, 2026 requiring businesses to offer customers a cash option.
Daily Mail
4 days ago
- Business
- Daily Mail
The major sacrifice Aussies will need to make if they want to keep using cash
Australians may have to go back to paying fees again for using rival bank ATMs like they did a decade ago if they want to keep having access to cash, a finance expert says. The Big Four banks in 2017 agreed to scrap those $2 fees for customers who used the automatic teller machines of a competitor. While it was regarded as good news, that policy is threatening the future of cash in Australia with very few consumers now using banknotes to pay for everyday goods and services. Australia's key cash-in-transit company Armaguard, owned by billionaire transport magnate Lindsay Fox's family, needs $50million a year in handouts to survive and now federal regulators are proposing Australia have a new minister for cash. In just seven years, the number of ATMs have more than halved, plunging from 13,814 in June 2017 to just 5,476 in June last year, Australian Prudential Regulation Authority data showed. The Commonwealth Bank, Westpac, NAB and ANZ used the abolition of rival ATM fees to take away those cash dispensing machines and squeeze Australia's cash-in-transit companies during contractual negotiations. This has made distributing cash unprofitable with the Big Four banks, supermarket giant Woolworths and retail group Wesfarmers - the owner of hardware chain Bunnings, Kmart and Officeworks - last week announcing they would provide a $25.5million lifeline to Armaguard from July to December. 'Major banks and major retailers have reached an agreement with Armaguard to extend their financial contribution for a further six months,' the Australian Banking Association said. Armaguard needs to be subsidised to the tune of $50million a year despite having a 90 per cent share of Australia's cash-in-transit market, with the Reserve Bank estimating cash now makes up just 13 per cent of in-person transactions. Jason Bryce, the founder of Cash Is Welcome, said Armaguard wouldn't need to be subsidised by the banks and the supermarkets if those old fees for using rival ATMs still existed - and generated $500million a year in revenue. 'I think it was a bad, short-sighted move - I don't want to prescribe the answers - but the problems date from that decision,' he told Daily Mail Australia. 'There's no doubt the $2 ATM fee for customers of other banks kept the cash distribution system paid for and viable in Australia - since 2017, since that decision, the cash industry has contracted and been under pressure. 'There needs to be some kind of structural change to provide support, go forward, to cover the $50million-odd per year that Armaguard is now getting. 'There should be no need for $50million a year - the problem has been created by the banks and the supermarkets.' Mr Bryce said the abolition of those rival ATM fees had led to the big banks putting extra pressure cash deliverers, to the point that Spanish group Prosegur in 2023 merged with Armaguard to survive. 'The two big companies have merged into one and that one company is on the verge of bankruptcy,' he said. Peter Fox, the executive chairman of Armaguard, told The Australian Financial Review its 'shortfall in revenue' was 'caused by the four major banks and two retailers which slashed their margins to Armaguard in a period of cut-throat competition'. Commonwealth Bank chief executive Matt Comyn last year admitted the banks were 'very, very aggressive' towards Armaguard. 'The banks drove Armaguard to the brink of bankruptcy,' Mr Bryce said. 'Matt Comyn says the banks underpaid Armaguard for cash-in-transit.' 'It's really up to the banks to pay more. 'So banks now don't really have much of a leg to stand on when they complain about handing over $25million for six months.' The disappearance of major bank ATMs saw the appearance of third-party ATMs that charge $3 fees for use. 'There's less bank-owned ATMs and there's more third-party ATMs that charge $3 or so,' Mr Bryce said. The Council of Financial Regulators - which includes the RBA - and the Australian Competition and Consumer Commission is proposing a new federal minister in charge of cash distribution who would have oversight over a registered entity that would 'provide critical cash services to a significant part of the market'. 'Despite the rise of digital payments, cash remains vital for many Australians, particularly in regional and remote communities,' it said in a consultation paper. 'Cash supports secure, inclusive, and resilient transactions for those who prefer or rely on it.' The federal government last year announced a cash mandate would be coming into force on January 1, 2026 requiring businesses to offer customers a cash option.
Yahoo
4 days ago
- Business
- Yahoo
NAB responds to wild conspiracy theory about customer accounts being frozen
Australians have been up in arms about a policy from one of the Big Four banks that doesn't even exist. Multiple posts have appeared on social media claiming NAB customers could be frozen out of their accounts if they made "mean" comments online. The fake claim even alleged that you could have your account closed down in certain circumstances. Aussies were furious and said it was a gross overreach of power. However, a bank spokesperson told Yahoo Finance these incorrect allegations are linked to a policy that was brought in two years ago. RELATED NAB worker saves grandmother from $50K heartbreak after noticing tiny detail Common neighbour problem plaguing Aussie houses Major inflation change following RBA's shock interest rate decision Where did the NAB conspiracy come from? The incorrect claims have been floating around since 2023, but they have recently been doing the rounds again on social media pages like Facebook and Threads. It all started when NAB updated its terms and conditions to protect customers from financial abuse. The new policy would mean you could have your account frozen or closed if you engaged in "unacceptable conduct". When you send money to someone, even if it's just 1 cent, you can include a message in the description or reference section. Perpetrators of financial abuse had been using this to send offensive or harmful messages to certain people and NAB's change was aimed at stamping out this behaviour. 'We're blocking around 15,000 abusive messages each month sent through payment channels and today's move further puts financial abusers on notice that we will do everything we can to protect innocent people,' NAB's head of customer vulnerability, Michael Chambers, said two years ago when the policy update was brought in. Many other banks have similar policies to protect people from financial furious over fake claims While the policy change had good intentions, people misconstrued how it could affect their accounts. Many started posting on social media that you could have your money frozen purely for just saying something nasty anywhere on the internet. "If the NAB are going to scrutinise your social media accounts it means they have too much time on their hands. I would close my account it they did that," wrote one person. "So NAB is now in charge or Facebook ??? If my bank does anything like that I'd just close my account," added another. There was even an article online promoting the conspiracy. While the theory has roots as far back as 2023, people have resurrected it in recent weeks for an unknown reason. These new posts have been liked hundreds of times and shared widely across the internet. What does NAB have to say about the misinformation? When approached by Yahoo Finance, NAB declined to elaborate further about the conspiracy. But it's worth mentioning that the changes made in 2023 only applied to activity on NAB's banking channels like internet banking and the mobile app. NAB doesn't have the power to close your account based on things you might say on the internet. 'Concerns about financial abuse remains one of the top reasons customers get in touch with our customer support team, NAB Assist,' Chambers said two years ago. 'If a NAB account holder is now found to be perpetrating financial abuse, we will be able to suspend or terminate their services. 'We're taking a firm stand against financial abuse, and we aren't resting there. We're working with other banks to help develop a consistent approach across the industry.'Error in retrieving data Sign in to access your portfolio Error in retrieving data
Yahoo
08-07-2025
- Business
- Yahoo
RBA Surprised by Holding Rates: How Did AUD/USD React?
The decision, which followed cuts in February and May, surprised the financial markets that had nearly fully priced in a 25-basis-point reduction. So why did the RBA hold back when inflation appears to be easing, growth has slowed, and Australian major banks were aligned in expecting another round of monetary easing in July? Ahead of the meeting, both market participants and analysts were nearly unanimous in forecasting a rate cut. The latest consumer price data showed inflation slowing more than expected, with the monthly CPI rising just 2.1% in the year to May—down from 2.4% in April and moving closer to the RBA's 2–3% target band. At the same time, GDP data for the first quarter revealed weaker-than-expected economic activity, while soft retail sales and a cautious consumer mood pointed to a subdued domestic outlook. According to The Guardian, markets were pricing in three consecutive rate cuts—one each in July and August, followed by a third by November—which would bring the cash rate down to 3.1% from the current 3.85%. The Big Four banks—Commonwealth Bank, Westpac, NAB, and ANZ—had similarly forecast a July rate cut, arguing that weaker inflation and softening business conditions gave the RBA room to act. Yet the central bank chose to pause, and the rationale reveals a more cautious and nuanced approach. The RBA's board voted 6–3 in favor of holding rates, marking a rare division among its members. RBA Governor Michele Bullock clarified that the split did not concern the direction of policy—which most agreed should continue easing—but the timing of further cuts. In the end, a majority chose to wait for additional confirmation that inflation was falling sustainably toward the midpoint of the target range. Specifically, the board emphasized the need to assess the quarterly inflation report due on July 30, which will be critical in shaping the next decision at the August 12 meeting. While headline inflation has moderated, some members remain concerned about the potential for price pressures to rebound or prove more persistent than expected. Governor Bullock also addressed speculation that the central bank was holding back to preserve room for maneuver in case of external shocks—such as a potential escalation in global trade tensions. 'We're not keeping our powder dry,' she said, pushing back on the idea that the RBA was preemptively holding back stimulus. The RBA's reference to 'international developments' in its statement is not abstract. Global markets continue to digest President Donald Trump's revived tariff push, which adds a layer of uncertainty to the global economic outlook. On Monday, Trump sent formal notices to several countries imposing 'reciprocal' tariffs, many of which are scheduled to take effect on August 1. Although China was immediately targeted, U.S. allies and major Australian trading partners such as Japan, South Korea, and Indonesia are also facing hefty tariffs—up to 32% in Indonesia's case. While the move stoked concerns about global trade fragmentation, not all voices in Australia view it negatively. The Productivity Commission has argued that Australia could benefit from diverted capital flows caused by U.S. protectionism. Its modelling suggests that Australia's GDP could rise by 0.37% due to increased foreign investment, as the country becomes relatively more attractive than heavily targeted economies. Still, the broader uncertainty around U.S. trade policy and the potential for retaliatory measures remain key risks that could weigh on global sentiment and demand—factors the RBA is clearly monitoring closely. The Australian dollar has staged a modest recovery against the U.S. dollar, trading near 0.6535 at the time of writing, up approximately 0.70% on the day at the time of writing. The price is currently sitting just above the Kijun-sen (baseline) and back above the Tenkan-sen (conversion line), signaling a potential short-term rebound. More importantly, the AUD/USD Forex pair remains above the Ichimoku Cloud (Kumo), which suggests that the broader trend is still marginally bullish. However, the price continues to struggle beneath the resistance zone around 0.6580, a level that has capped rallies multiple times over the past month. The Chikou Span (lagging line) remains above the price action from 26 periods ago, but bounced back from the price with the RBA decision which supports a mildly bullish stance. The cloud ahead is relatively thin, indicating reduced momentum and a possible lack of conviction in either direction. If the pair breaks below 0.6485 and then the bottom of the cloud at 0.6446, this would shift the trend outlook decisively bearish. On the other hand, a successful breach and close above 0.6580 would confirm bullish continuation and possibly trigger upside extension toward 0.6650. The RSI is currently at 53.03, slightly above the neutral 50 threshold. This suggests that momentum is currently balanced, with neither bulls nor bears in clear control. This suggests that momentum is currently balanced, with neither bulls nor bears in clear control. The RSI's inability to break convincingly above 60 in recent rallies indicates that buyers are still hesitant, and sentiment remains fragile. For a convincing bullish continuation, the RSI would need to push above the 60–65 zone, supported by rising volume. The MACD line is nearly flat and sitting just below the signal line, while the histogram shows a series of small bars close to the zero line. This configuration reflects consolidation and indecision. The lack of a clear crossover or histogram expansion suggests that momentum is weak and a directional move has yet to fully materialize. In the wake of the RBA's decision, attention turns to the next major data release: the quarterly inflation print due on July 30. That report will likely determine whether the RBA feels confident enough to resume its cutting cycle in August or continue to wait for clearer signals. For now, the market still expects the cash rate to move lower over the coming months, but the path forward is less linear than previously assumed. The Australian dollar's path will depend not only on domestic inflation but also on how global risks—especially trade tensions—play out in the weeks ahead. So stay tuned! Sources: Wall Street Journal, RBA, ABS, Reuters, Productivity Commission, CNN, The Guardian This article was originally posted on FX Empire Vistra's Nuclear AI Option, Renewables Draw Inflows Fragile Middle East Truce Heightens Geo-political, Macroeconomic Risks, Including for Europe Stocks Playbook for Geopolitical Tensions (Overreacting is Costly) REV Group Shares Up 77% In a Year Thanks to Big Money Spot Outliers Like Hyperscaler Microsoft Early Identify Superstar Stocks Like DoorDash Before the Crowd Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Daily Mail
08-07-2025
- Business
- Daily Mail
Millions of Aussie mortgages brace for big interest rate change
Aussie home borrowers are being brutally deprived of another much-needed rate cut despite inflation being on the low side - surprising financial markets. The Reserve Bank of Australia has left the cash rate on hold at 3.85 per cent, confounding financial markets that had regarded a Tuesday afternoon rate cut as a 97 per cent chance as recently as last night. For weeks, economists had been confidently predicting a July 8 rate cut, with the interbank lending futures markets last week even suggesting it was a 100 per cent chance, with inflation now on the low side. Australia's weak economy had also convinced the experts at the Big Four banks that the Reserve Bank would move as soon as possible, rather than waiting until August following the release of more comprehensive quarterly inflation data. But Governor Michele Bullock (pictured) said underlying inflation, without big price drops, was still too high despite being within the RBA's two to three per cent target, adding borrowers shouldn't expect big rate cuts as $75 electricity rebates artificially suppressed prices. 'It may be we don't need to reduce rates as much as other countries have done,' she told reporters. 'Reasonable people can differ in their interpretation of data.' For the first time ever, the RBA revealed the vote of its new monetary policy board with six in favour and three against, which means Ms Bullock could potentially be outnumbered and lacking authority as central bank chief. 'They're unattributed votes: I won't reveal how I voted,' she said. 'They're unattributed for a reason so the answer to that is I won't tell you how I voted.' The RBA didn't reveal which board members voted for or against keeping rates on hold, but Ms Bullock said there was unanimous agreement that rates were likely to keep falling. 'The difference was not about direction, it was about timing,' Ms Bullock said. 'I do understand that households with mortgages are very to see interest rates decline because it helps them with cashflow.' Ms Bullock however suggest inflation was only within target because of $75 quarterly electricity rebates that expire in late 2025. 'I understand why people think we've hit that inflation target, in the sense that the headline inflation people face is down sort of around the target but that's an artefact of certain subsidies,' she said. 'Real consumers, because they are getting the subsidies, but they'll roll off.' The Reserve Bank suggested Donald Trump's tariffs were delaying a rate cut, with the 90-day pause expiring on Wednesday night, Australian time. 'There are uncertainties about the outlook for domestic economic activity and inflation stemming from both domestic and international developments,' the RBA board said. Treasurer Jim Chalmers (pictured), who introduced a new specialist monetary policy board to decide the cash rate, expressed his disappointment. 'I acknowledge, there will be millions of Australians around the country who were desperately hoping for more rate relief today in addition to the two rate cuts that we've already seen over the last five months,' he told reporters in Canberra on Tuesday. 'This decision will comes as a surprise to the market and to almost every economist who's expressed a view in recent days.' Economists with Australia's Big Four banks were all forecasting relief and thought the RBA would move on Tuesday instead of waiting until August, following the late July release of June quarter inflation data. But the RBA on Tuesday suggested it could still wait. 'With the cash rate 50 basis points lower than five months ago and wider economic conditions evolving broadly as expected, the board judged that it could wait for a little more information to confirm that inflation remains on track to reach 2.5 per cent on a sustainable basis,' it said. Pricing for a rate cut had surged in late June after new Australian Bureau of Statistics data showed monthly headline inflation growing by just 2.1 per cent in May, putting on the low side of the RBA's two to three per cent target. 'We think that level of volatility is not representative of what's going on with inflation,' Ms Bullock said. This was lower than the March quarter's 2.4 per cent inflation pace but the RBA commentary on Tuesday suggests another low number would be needed for the June quarter to justify another rate cut in August. Underlying inflation in the March quarter was higher at 2.9 per cent, and was only in the RBA band for one quarter. Australia's economy also grew by just 1.3 per cent in the year to March, a level well below the long-term average of three per cent.
