Rural NZ Communities Feel Pinch as ATM Access Shrinks

New Zealand's rural communities are facing a cash crisis as ATM access dwindles. Research by RNZ found that nearly 725,000 people live more than 5km from their nearest ATM, with over 372,162 living more than 10km away.

In some areas, residents have to travel long distances to access a cash machine. For example, those living in Haast may need to drive 144km to get cash, while others in Omarama face a 30km journey to Twizel.

The New Zealand Banking Association's chief executive, Roger Beaumont, said banks consider customer demand and practicality when deciding where to locate ATMs. However, University of Otago economist Murat Ungor argues that this approach is inadequate, as it fails to account for the needs of rural communities.

Ungor points out that research shows 72% of small businesses would be negatively affected if cash were unavailable, and that declining access disproportionately affects older people, those with disabilities, low-income individuals, and those with limited transport. He also cites the Reserve Bank's Community Cash Trial in Waipukurau as evidence of the system's failure.

The Reserve Bank has identified 24 rural settlements that need cash services, including Ngakawau, Ongaonga, and Omakau. However, some areas already have limited ATM access, and businesses are being forced to drive long distances to deposit cash or face prohibitively expensive fees.