New Zealand's network of ATMs has shrunk in recent years, and some parts of the country now don't have any cash machines at all.
By Susan Edmunds & Jeffrey Halley of RNZ
RNZ research shows there are now just over 1000 access points for cash around the country, at which there may be more than one ATM. About half of the just over 3000 ATMs are owned by non-bank providers.
But there are some places where there is no ATM anywhere near. People living on Great Barrier Island, in Haast, Tuatapere, Omarama and Milford Sound all have to travel a long way to access a cash machine.
From Haast, they might have to drive 144km, from Omarama it is about 30km to Twizel, and in Tuatapere 48km.
At the Hard Antler Bar and Restaurant in Haast, a staff member said people would get cash out from a local shop or gas station if they needed it.
"It would be nice to have one but we manage just fine without. Being so far away from shops, we have no need anyway."
In a Haast community group, residents said it was not a huge problem. "If you live off venison, crayfish, veggies from your garden and coffee, you don't need any cash," said one.
Others said it was a potential security problem to have an ATM. "ATMs are bad news for small out of the way quiet towns. It puts them in line for serious robbery… plus it requires being topped up a lot which costs a lot which is then passed on to you, the person withdrawing," said another.
Across the country, about 725,000 people live at least 5km from the nearest ATM as the crow flies, 372,162 more than 10km, 200,629 more than 15km and 301 more than 75km.
Reserve Bank wants to ensure access to a free cash point
New Zealand Banking Association chief executive Roger Beaumont said there was a range of factors taken into account when banks were thinking about where to locate ATMs.
"That would probably include things like customer demand for the service, and the practicality of cash in transit services reaching those locations."
The Reserve Bank has been consulting on its plans for cash. It wants 95% of people living in urban areas to have walking-distance access to a free cash point.
It has identified 24 rural settlements it says need cash services, including Ngakawau, Ongaonga, Omakau, Owaka, Whangaroa and Taipa, Te Araroa, Cheviot, Rotheram, Waikari, Kimbolton, Kawhia, Balfour, Ohai, Woodlands, St Andrews, Glenavy, Nuhaka, Tuia, Hampton, Kurow, Taharoa, Harihari, Fox Glacier and Ross.
Some of those areas already have limited ATM access.
University of Otago economist Murat Ungor said it was a significant problem that some areas of the country did not have ATMs.
"Research and practical evidence show that people cannot always simply find other solutions, and the burden of doing so falls unevenly on those who are already vulnerable.
"The Reserve Bank has stated that the cash system is not fully meeting the public's needs and that a significant increase in the quantity and quality of cash services is required, especially in rural areas.
"The assumption that people would find other ways is challenged by the realities in these communities. Research shows that 72% small businesses would be adversely affected if cash were unavailable. In towns like Palmerston, the only ATM charges a prohibitive $2.80 fee, and businesses have no local way to deposit cash, forcing them to drive long distances, like to Dunedin, just to bank their takings."
He said research focused on rural towns confirmed that declining access was a bigger disadvantage for older people, people who were disabled, on low incomes or with limited transport.
"Beyond practicality, cash remains essential for cultural practices like koha at tangihanga and for local fundraising functions something digital currency cannot easily replicate. The evidence is clear: these are not isolated inconveniences, but systemic failures that risk excluding communities from full participation in the economy."
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