struggles in cash access: The Bundesbank sounds the alarm on vanishing cash supply
cash shortage issues escalate according to Bundesbank's perspective
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It's getting tougher for folks across Germany to score some cold, hard cash, according to recent surveys. The dramatic drop in access points like ATMs and banks has got the Bundesbank on high alert, cautioning that the days of a robust cash supply are numbered.
The Bundesbank isn't too jazzed about the thought of a seamless cash supply for the population in the future. A paper from the latest Bundesbank's monthly report points to the shrinking number of bank branches and cash machines, along with an increasing number of people struggling to get their mitts on cash, as evidence supporting this stance. The poll reveals a whopping leap from six percent in 2021 to 15 percent in 2023, those who find it a real pain to locate an ATM or bank branch. Despite this, the Bundesbank still stands by the assertion that the cash infrastructure for the population remains intact. Typically, citizens live an average of 1.4 kilometers away from their nearest ATM or bank branch, with this distance narrowing to around 800 meters in urban areas.
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Additionally, the Bundesbank reports that a staggering 95.7 percent of Germans reside in communities boasting at least one bank branch or cash machine. However, there are now nearly 4,950 communities across the nation, with a combined population of 3.6 million individuals, that no longer have access to either option. Overall, the number of bank branches has more than halved, from approximately 53,000 in 2002 to around 21,000 in 2023. Although the number of cash machines climbed to around 59,000 by 2018, it's been on a steady decline ever since, currently hovering at around 51,000.
The dwindling number of branches can be attributed to mounting banking sector costs and a rise in online banking. The authors of the report also throw out the possibility that the "ATM bombing" trend might have further catalyzed the dismantling of the cash infrastructure. Damaged cash machines are often left unmended, as the perceived risk of another attack and the need for costly security measures discourage reinstallation.
Sources: ntv.de, lar/rts
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- The Bundesbank's Community policy and Employment policy could be revised to address the current struggles in cash access, as the alarming decrease in cash machines and bank branches has increased employment opportunities for ATM repair specialists due to the rising number of damaged cash machines.
- The forthcoming outlook for the Bundesbank in 2023 warned of potential risks associated with the vanishing cash supply, indicating a possible shift in monetary policy focused on digital currency adoption, given the average citizen's growing reliance on electronic means of transaction and the average distance to ATMs or banks becoming relatively smaller.
- The continuous decline in the number of bank branches from 2002 to 2023 has forced the Bundesbank to reevaluate its Employment policy guidelines, as it predicts an increase in the unemployment rate in the Bundesbank due to the reduction of jobs tied to physical bank branches, and a surge in demand for digital banking experts instead.
