In many Western countries, including Australia, banks are increasingly closing ATMs and branches. The aim behind this move is to encourage customers to adopt digital payments and online banking services provided by these banks and large corporations. Although banks currently generate substantial profits, they believe that by eliminating branches and staff and promoting standardized self-service apps, they can further boost their profits. This approach allows senior managers to have more direct control and monitoring of customer interactions.
To justify these actions, banks often claim that customers are driving the shift towards digital transactions and away from cash. However, the underlying motive is to increase corporate profits. Payment companies like Visa and Mastercard seek to expand their digital payment services, while banks aim to cut costs. To achieve their objective, these financial institutions use a “nudge” strategy. First, they make cash, ATMs, and branches less convenient, and then they aggressively promote digital alternatives, hoping that people will eventually “learn” to prefer digital options.
This manipulation of public perception and behavior can be understood through concepts like Antonio Gramsci’s hegemony, where powerful parties shape cultural and economic environments to make their interests appear natural and inevitable. Additionally, Louis Althusser’s concept of interpellation explains how institutions can make individuals internalize certain beliefs by consistently addressing them as if they already hold those beliefs. In this case, financial institutions work to create the belief that a cashless society is in the individual’s best interest, even though it primarily benefits banks and payment companies.
While digital systems may offer convenience, they also come with the risk of failures and central points of vulnerability. Recent incidents, such as the Visa network crash, demonstrated that digital payment reliance can lead to disruptions. In contrast, cash transactions provide a degree of independence and privacy, which financial institutions and technology companies want to eliminate to exert more control and collect fees and data.
Transitioning to a cashless society poses dangers, including further marginalizing people without bank accounts, potential psychological implications on spending habits, and increased surveillance concerns. Despite these risks, there is an alignment between governments and financial institutions, with some governments favoring the digital financial services industry, neglecting the negative implications of cashless transactions.
It is crucial to question the narrative of a cashless society and hyper-digital banking being “natural progress” and recognize the deliberate campaign by financial institutions to push customers towards digital services. It is essential to stay informed and advocate for preserving cash as a reliable, inclusive, and private form of payment.
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