1 00:00:00,120 --> 00:00:02,040 Speaker 1: We got the cash scrap which is on the Reserve 2 00:00:02,040 --> 00:00:05,600 Speaker 1: Bank cites the country needs thirteen hundred multi bank hubs, 3 00:00:05,640 --> 00:00:08,200 Speaker 1: so we like cash. Apparently we use cash. Cash is 4 00:00:08,200 --> 00:00:10,520 Speaker 1: getting harder to get though the banks say that's rubbish. 5 00:00:10,840 --> 00:00:13,640 Speaker 1: Roger Beaumont is the CEO of the Banking Association and 6 00:00:13,760 --> 00:00:14,080 Speaker 1: is with us. 7 00:00:14,160 --> 00:00:16,880 Speaker 2: Roger, good morning, Oh, good morning, Mike, thanks for having me. 8 00:00:17,040 --> 00:00:18,880 Speaker 1: Not at all. Does this come from nowhere from the 9 00:00:18,920 --> 00:00:20,520 Speaker 1: Reserve Bank or has been brewing. 10 00:00:21,079 --> 00:00:24,000 Speaker 2: Completely out of the blue. We were very surprised to 11 00:00:24,000 --> 00:00:27,080 Speaker 2: receive this proposal yesterday. In fact, the media got it 12 00:00:27,120 --> 00:00:29,480 Speaker 2: ahead of us, so yeah, it was a surprise. 13 00:00:30,200 --> 00:00:33,080 Speaker 1: The survey they run the bit I have over eighty 14 00:00:33,080 --> 00:00:36,479 Speaker 1: percent of us use cash, quote unquote sometimes what does 15 00:00:36,520 --> 00:00:37,360 Speaker 1: that mean? Do you know? 16 00:00:38,479 --> 00:00:42,360 Speaker 2: Well, that might be that you useers to give your 17 00:00:42,440 --> 00:00:46,000 Speaker 2: nephew their annual birthday present once a year or something 18 00:00:46,080 --> 00:00:49,159 Speaker 2: like that. I don't know what the more fulsome definition 19 00:00:49,240 --> 00:00:51,559 Speaker 2: of that that is. But the bottom line is this 20 00:00:51,600 --> 00:00:56,160 Speaker 2: is a really curious proposal from the RBNZ. It's kind 21 00:00:56,200 --> 00:00:59,720 Speaker 2: of back to the future. It's almost like Sport New 22 00:00:59,800 --> 00:01:02,760 Speaker 2: zeal And demanding that Jesus size and leg warmers makes 23 00:01:02,760 --> 00:01:08,039 Speaker 2: a comeback without any appreciation of customer preferences, let alone demand. 24 00:01:08,000 --> 00:01:10,399 Speaker 1: Can you or can they make the stick? Are they 25 00:01:10,600 --> 00:01:11,960 Speaker 1: in a position to do that or not? 26 00:01:12,680 --> 00:01:16,880 Speaker 2: Well, they are our regulator, so if they just deem 27 00:01:17,040 --> 00:01:20,840 Speaker 2: something essential and appropriate, they can make that call. But 28 00:01:20,920 --> 00:01:22,920 Speaker 2: I think there'll be a lot of discussion between now 29 00:01:22,959 --> 00:01:27,720 Speaker 2: and when the proposal or consultation period closes in April. 30 00:01:27,840 --> 00:01:29,760 Speaker 1: Well, has that a foregone conclusion? So they go to 31 00:01:29,760 --> 00:01:31,520 Speaker 1: the public and they'll say, Oh, the public love this, 32 00:01:31,560 --> 00:01:33,200 Speaker 1: they want more of because I think they do. I 33 00:01:33,200 --> 00:01:36,080 Speaker 1: think if you ask the public, do you want cash 34 00:01:36,319 --> 00:01:38,000 Speaker 1: more of it? I think the answer is going to 35 00:01:38,040 --> 00:01:39,560 Speaker 1: be yes, whether you like it or not. 36 00:01:40,360 --> 00:01:43,680 Speaker 2: Well, that that flies in the face of customer activity 37 00:01:43,720 --> 00:01:48,800 Speaker 2: and customer demand because customers are increasingly not using cash 38 00:01:48,840 --> 00:01:50,640 Speaker 2: in terms of the way they interact and the way 39 00:01:50,680 --> 00:01:54,760 Speaker 2: they make transactions and payments. They're doing that electronically or 40 00:01:54,840 --> 00:01:58,400 Speaker 2: via their app or online banking, rather than going to 41 00:01:58,400 --> 00:02:00,920 Speaker 2: an ATM and punching in their and getting cash out 42 00:02:00,960 --> 00:02:02,600 Speaker 2: to go to the deary to buy an ice cream. 43 00:02:02,720 --> 00:02:07,320 Speaker 2: It's just a very old fashioned model and approach. But 44 00:02:07,440 --> 00:02:10,040 Speaker 2: you know what people are like. You know what people 45 00:02:10,080 --> 00:02:12,720 Speaker 2: are like you're speaking to yourself, Mike, Well. 46 00:02:12,600 --> 00:02:15,280 Speaker 1: I am, funnily enough, I am because I don't use cash, 47 00:02:15,639 --> 00:02:19,200 Speaker 1: because I never leave house because I'm weird. But I 48 00:02:19,320 --> 00:02:22,320 Speaker 1: want cash and I want the idea of cash. And 49 00:02:22,360 --> 00:02:24,240 Speaker 1: it says, listen to one of the surveys, eighty three 50 00:02:24,280 --> 00:02:27,959 Speaker 1: percent of businesses, even if they don't use cash, say 51 00:02:28,000 --> 00:02:31,560 Speaker 1: it's important, slash very important for residents. Now that's that's 52 00:02:31,600 --> 00:02:33,160 Speaker 1: the real politique, isn't it. 53 00:02:34,120 --> 00:02:36,840 Speaker 2: But there's nothing wrong with wanting cash, And Mike, if 54 00:02:36,880 --> 00:02:39,520 Speaker 2: you want cash today, you can go and. 55 00:02:39,480 --> 00:02:42,240 Speaker 1: Get it right, sure, but not if I'm in the country. 56 00:02:43,200 --> 00:02:45,440 Speaker 2: Well no, but you could go to you could go 57 00:02:45,480 --> 00:02:47,919 Speaker 2: to a retailer in a very small town, for example, 58 00:02:48,600 --> 00:02:51,360 Speaker 2: and buy something and say, mate, can I also take twenty. 59 00:02:51,080 --> 00:02:54,520 Speaker 1: Bucks to do that? 60 00:02:55,240 --> 00:02:59,200 Speaker 2: Well, they actually do in my experience. But you know, 61 00:02:59,720 --> 00:03:03,480 Speaker 2: the this is just actually the prioritization of this work 62 00:03:04,280 --> 00:03:07,600 Speaker 2: in terms of the expenditure is something that we just 63 00:03:07,600 --> 00:03:10,280 Speaker 2: can't get our head around when thanks to be spending 64 00:03:10,320 --> 00:03:13,160 Speaker 2: money on much more important things in terms of technology 65 00:03:13,160 --> 00:03:17,720 Speaker 2: development and further scam and fraud prevention to keep consumers 66 00:03:17,760 --> 00:03:20,720 Speaker 2: safe in terms of bang for bucks for consumers and 67 00:03:20,760 --> 00:03:23,240 Speaker 2: what they're wanting the sins really out of. 68 00:03:23,240 --> 00:03:26,639 Speaker 1: Step their claim. The RBS claim that New Zealand benefits 69 00:03:26,639 --> 00:03:29,600 Speaker 1: to the tune of two point eight three billion dollars perenum. 70 00:03:29,600 --> 00:03:31,440 Speaker 1: If you did this, do you believe that where would 71 00:03:31,440 --> 00:03:32,360 Speaker 1: they get that number from? 72 00:03:33,280 --> 00:03:35,280 Speaker 2: We really don't know where they got that number from. 73 00:03:35,320 --> 00:03:38,480 Speaker 2: And you know, we'd need to drill down into that 74 00:03:38,520 --> 00:03:39,280 Speaker 2: to understand it. 75 00:03:39,600 --> 00:03:41,640 Speaker 1: I think they made it with that. I don't think 76 00:03:41,640 --> 00:03:43,600 Speaker 1: it's true. As much as I want cash, I don't 77 00:03:43,600 --> 00:03:45,200 Speaker 1: think that number is true. I think they're pulling that 78 00:03:45,320 --> 00:03:45,760 Speaker 1: out of there. 79 00:03:46,000 --> 00:03:49,840 Speaker 2: You know what, well they Your words might not mine. 80 00:03:49,880 --> 00:03:52,720 Speaker 1: But here's the other thing for you. One hundred million 81 00:03:52,760 --> 00:03:54,720 Speaker 1: dollars is what it's going to cost the majors, the 82 00:03:54,760 --> 00:03:57,240 Speaker 1: four majors to do this. That's a drop. You'd find 83 00:03:57,240 --> 00:03:59,960 Speaker 1: that behind the couch or reception that you'll any given 84 00:04:00,040 --> 00:04:01,680 Speaker 1: major bank, wouldn't you It's nothing. 85 00:04:02,280 --> 00:04:04,680 Speaker 2: Well, look, as I say, it's not about the cost. 86 00:04:04,720 --> 00:04:07,520 Speaker 2: It's not about the cost of implementation of this. Is 87 00:04:08,040 --> 00:04:11,880 Speaker 2: it the best bang for bark for consumers in terms 88 00:04:11,920 --> 00:04:15,800 Speaker 2: of what they want from their bank and our first cut? 89 00:04:15,840 --> 00:04:17,960 Speaker 2: Look at that is absolutely that is not the case. 90 00:04:18,080 --> 00:04:22,200 Speaker 2: Remember too, they are also proposing adding costs to retailers 91 00:04:22,200 --> 00:04:26,280 Speaker 2: because they're proposing that all retailers have to be able 92 00:04:26,320 --> 00:04:29,520 Speaker 2: to transact in cash. So that adds cost to those 93 00:04:29,720 --> 00:04:32,480 Speaker 2: small businesses because a a lot of retailers and our 94 00:04:32,520 --> 00:04:36,440 Speaker 2: cash lists, because there's no demand for that type of purchase, 95 00:04:37,120 --> 00:04:39,360 Speaker 2: and so that adds cost to the retailers, and that'll 96 00:04:39,400 --> 00:04:42,400 Speaker 2: have a flow through to consumers and the total economy. 97 00:04:42,440 --> 00:04:44,160 Speaker 1: It's going to be great to Bupe. Appreciate your time. 98 00:04:44,200 --> 00:04:46,960 Speaker 1: Roger Beaumont, who's the CEO of the New Zealand Banking Association. 99 00:04:47,040 --> 00:04:48,839 Speaker 1: Mike car went to the bank to withdraw three thousand 100 00:04:48,880 --> 00:04:51,120 Speaker 1: dollars cash for a car. I was told, sorry, this 101 00:04:51,160 --> 00:04:52,760 Speaker 1: bank is cash list. You need to use the bank 102 00:04:52,800 --> 00:04:55,279 Speaker 1: that has cash twenty killing me to drive. Later I 103 00:04:55,279 --> 00:04:58,000 Speaker 1: could get my money. The cash point could only deliver 104 00:04:58,080 --> 00:05:00,760 Speaker 1: two thousand dollars. Now, this is part of what makes 105 00:05:00,800 --> 00:05:02,760 Speaker 1: the whole thing. So why are using cash to buy 106 00:05:02,800 --> 00:05:07,479 Speaker 1: a car? So there are legal slash text ramifications around 107 00:05:07,520 --> 00:05:09,920 Speaker 1: all of that, and you well know it. 108 00:05:10,400 --> 00:05:13,320 Speaker 2: For more from the Mic Asking Breakfast, listen live to 109 00:05:13,440 --> 00:05:16,479 Speaker 2: news talks. It'd be from six am weekdays, or follow 110 00:05:16,520 --> 00:05:18,120 Speaker 2: the podcast on iHeartRadio.