No hold ups…
As the world becomes increasingly digital, cashless societies are becoming more prevalent and there are some advantages arising as a result.
Denmark, for instance, has discovered an unexpected benefit of a cashless society after bank robberies in the Scandinavian country fell to zero. Figures from Finans Danmark, an industry association, show the number of attacks has collapsed in recent years as the shift towards online transactions has led many Danish banks to abandon cash services in branches.
While there were 221 bank robberies in 2000, the number of hold-ups in Denmark fell to 121 in 2004, before declining to one in 2021 and none last year. There were also no attacks on Danish ATM machines for a second year running in 2022, a spokeswoman for the association said, adding that financial crime had moved online, with digital fraud on the rise.
This trend towards a cashless society is not limited to Denmark, as many countries are seeing a shift towards non-cash forms of payment. In the United Kingdom, for example, 57% of all payments were conducted by card in 2021, with cash accounting for just 15% of payments. This shift towards digital transactions though has led to an increase in digital fraud, as criminals take advantage of the rise of internet banking.
As a business student, it is important to understand the implications of a cashless society for businesses and financial institutions. For example, with fewer cash transactions, businesses may need to adapt their point-of-sale systems to accept digital payments. Additionally, financial institutions may need to invest in more robust security measures to protect against digital fraud.
However, it’s also important to remember that not everyone may have access to digital forms of payment, and it’s important to consider the potential consequences and put measures in place to protect consumers who still rely on cash.
In conclusion, a cashless society can bring many benefits but it’s important for businesses and financial institutions to be prepared for the potential consequences and to put measures in place to protect consumers.