New Zealand's ATM dead zones
In some parts of the country people are 75km or more from an ATM, and hundreds of thousands have to travel at least 5km.
New Zealand's once extensive ATM network has dwindled in recent years and gaps now exist in certain regions, leaving some communities without access to cash machines. According to research by RNZ, there are now over 1000 cash access points across the country, with around half of the 3000 ATMs owned by non-bank providers. However, there are still places where no ATM is located nearby.
Residents on Great Barrier Island, Haast, Tuatapere, Omarama, and Milford Sound, for instance, must travel considerable distances to access cash. In Haast, a trip of up to 144km may be necessary, while those in Omarama have to drive around 30km to Twizel, and residents of Tuatapere must travel about 48km to reach a machine in Twizel.
For the staff at the Hard Antler Bar and Restaurant, located in Haast, people who require cash often resort to obtaining it from a local shop or gas station. One community member stated that being so far removed from shops, there is no pressing need for cash. Another community member suggested that it could pose a security risk, as ATMs could attract serious robberies in quiet towns.
Nationwide, approximately 725,000 people live at least 5km from the nearest ATM, with 372,162 residing more than 10km away, 200,629 over 15km, and only 301 living more than 75km from the closest machine. New Zealand Banking Association chief executive Roger Beaumont noted that various factors, such as customer demand and logistics of cash transportation, are considered when deciding ATM locations.
Meanwhile, the Reserve Bank is consulting on plans to increase walking-distance access to free cash points to 95 percent of urban residents, with 24 rural settlements identified as requiring cash services, including Ngakawau, Ongaonga, Omakau, Owaka, Whangaroa, and Taipa. However, some areas already have limited ATM access, while others might need significant improvements.
University of Otago economist Murat Ungor emphasized the severity of the issue, stating that the lack of ATMs is a significant problem, particularly in rural areas. The Reserve Bank asserts that the cash system is not fulfilling public needs and recommends a substantial increase in the quantity and quality of cash services. The assumption that people would find alternative solutions to the lack of ATMs is questioned by the realities faced by these communities.
Research shows that 72 percent of small businesses would be adversely affected if cash were unavailable, as fees at ATMs can be prohibitive and lack of local deposit options forces businesses to drive long distances to deposit cash. This has a significant impact on older people, disabled individuals, those with low incomes, or limited transport.
The Reserve Bank's Community Cash Trial in Waipukurau, where the nearest ATM is 50km away, confirms the system's failure and necessitates intervention. Beyond practicality, cash remains an essential component of cultural practices, such as koha at tangihanga and local fundraising functions, which digital currency cannot easily replicate.
The evidence is compelling: these issues are not isolated inconveniences but systemic failures that risk excluding communities from full participation in the economy.
Written by urgent.news from RNZ Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
