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Speaker 1: Deserve banks wants retail banks. I should say to go

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Speaker 1: pretty much bananas and bring back the talents. They say,

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Speaker 1: cash is still king, people still use it, small businesses

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Speaker 1: need somewhere to deposit it. The demand one thousand extra

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Speaker 1: ATMs or branches across the country, costing the banks one

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Speaker 1: hundred million dollars a year to operate. Claire Matthew's professor

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Speaker 1: at Massi University Business School, with us this morning. Claire,

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Speaker 1: Good morning, Mariana. Ryan, so good to have you back. So,

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Speaker 1: I mean, this is very expensive for the banks. Do

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Speaker 1: we actually need that many ATMs and branches?

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Speaker 2: Well, I'm absolutely not convinced that we do. I think

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Speaker 2: the cost is a side issue. I think it simply

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Speaker 2: comes down to do we need them? And quite frankly,

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Speaker 2: I don't understand where the Reserve Bank is coming from

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Speaker 2: and suggesting that we do.

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Speaker 1: What about if there's a natural disaster and everyone needs cash.

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Speaker 1: We need to have some circulation going, don't we.

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Speaker 2: Well, we do need to have, so that part of

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Speaker 2: the argument carry some water. But I think that the

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Speaker 2: solution that they're providing is not the best solution because

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Speaker 2: how often do we have a disaster? And yes, I

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Speaker 2: know that's happening more often, but they're quite isolated and

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Speaker 2: it's not clear that cash has actually been lacking in

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Speaker 2: most of those. I think the last time we really

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Speaker 2: had a cash issue was around COVID, and let's hope

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Speaker 2: we don't have anything like that in the near future.

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Speaker 2: I think there is potentially an issue, but I just

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Speaker 2: don't think the solution is the right solution.

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Speaker 1: I was in Hawks Bay for cyclone Gabrielle doing some

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Speaker 1: reporting there and it was there maybe twelve hours or

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Speaker 1: twenty four hours after it happened. There was no cash.

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Speaker 1: The ATMs were empty. I mean, it was a problem

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Speaker 1: is I think there is a genuine argument there. You're

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Speaker 1: saying this is not.

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Speaker 2: Necessarily a solution, but you're saying that ATMs were there,

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Speaker 2: they didn't have cash in them, and I think that

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Speaker 2: is the problem in a disaster, it's no good. It's

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Speaker 2: no good that there are cash, that there are branches

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Speaker 2: or ATMs. They've got to have cash, and then a disaster,

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Speaker 2: how are you going to get the cash to them?

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Speaker 2: So I think that that actually illustrates quite clearly where

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Speaker 2: there why the solution is lacking.

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Speaker 1: Yes, but if we had more ATMs, then we would

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Speaker 1: have more cash, and you know, we would use it more,

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Speaker 1: we'd be more likely to have it on us, on

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Speaker 1: our person, that sort of thing.

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Speaker 2: I don't believe we would because we just don't generally

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Speaker 2: use cash as a population. There are some people that

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Speaker 2: use it a little bit, there are some that use

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Speaker 2: it entirely, but that's a very small fraction of the population.

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Speaker 2: For most of us, cash is something that we use

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Speaker 2: because we happen to have it, but it's not what

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Speaker 2: we want. And for small businesses it's not actually an

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Speaker 2: advantage to them to have cash. Cash is unhygienic, unclean,

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Speaker 2: and a real hassle to deal with, not just because

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Speaker 2: of the hassles around getting it to a branch to bang.

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Speaker 2: There's just hassles and having to store it, and there's

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Speaker 2: risk because it opens them up to robbery.

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Speaker 1: Clear, appreciate your time this one and Clear Matthews from

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Speaker 1: Massive Universe City Time is sixteen after five. Would love

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Speaker 1: to know what you think about that, especially if you're

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Speaker 1: a small business owner. It's unclean.

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Speaker 2: News Talks EDB For more from early edition with Ryan Bridge.

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Speaker 2: Listen live to Newstalk SEDB from five am weekdays, or

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