A decline in the use of cash in Australia has led to major banks and retailers stepping in to financially support the private cash transportation sector.
An agreement to provide Armaguard with $50 million over the next 12 months to support its cash-in-transit business came after a series of meetings, led by the Reserve Bank of Australia, to discuss the sustainability of the wholesale cash distribution system.
Australian Banking Association CEO Anna Bligh said the deal would keep cash moving around the country.
Ms Bligh said the decline in the use of cash was not confined to Australia.
She said the major users and cash operators were working together so the industry was economically viable and there were significant improvements in productivity and efficiency.
“The agreement between Armaguard and a group of major banks and retailers reflects the fact that issues facing the sustainability of cash-in-transit services will only be addressed by the collective efforts of the relevant parties.
“The 12 months of financial support also gives Armaguard the necessary time to restructure the business. It also allows all parties to work through possible long-term solutions for sustainable cash access into the future,” Ms Bligh said.
Linfox Armaguard Executive Chairman Peter Fox said this was not a contest between the parties.
“No other nation has major banks, retailers and key distribution companies working together to achieve a more efficient cash-in-transit industry,” Mr Fox said.
Ms Bligh said the group of funders were ANZ, Australia Post, Coles, Commonwealth Bank of Australia, National Australia Bank, Wesfarmers, Westpac and Woolworths Group.
