In a significant development that has caught the attention of many Australians, especially those residing in regional areas, the Big Four banks – Commonwealth Bank (CBA), Westpac, National Australia Bank (NAB), and Australia and New Zealand Banking Group (ANZ) – have made a collective decision to halt the closure of regional bank branches for the next two and a half years, up until July 31, 2027.
This move comes as a breath of fresh air for regional communities that have witnessed a concerning trend of bank branch closures over the past few years. Since 2017, nearly 800 branches have shut their doors, leaving many customers in rural areas without easy access to essential banking services. The decision to pause further closures is a result of a deal struck with the federal government, which has been actively involved in addressing the decline of banking services in these communities.
Treasurer Jim Chalmers has been at the forefront of these discussions, emphasising the importance of regional Australia to the nation’s economy. ‘We are taking action today to arrest this decline in regional banking services,’ Chalmers stated, acknowledging the shift towards digital banking while also recognising the need for face-to-face banking options for those who rely on them.
The government’s involvement doesn’t stop at halting branch closures. It has also facilitated an agreement with the major banks to bolster the services provided at Australia Post outlets. This is a strategic move to ensure that, even in the absence of a local bank branch, Australians in regional areas can still access a range of banking services. CBA, Westpac, and NAB have reached in-principle agreements, while ANZ has agreed on key terms. Additionally, Macquarie and HSBC are set to begin negotiations with Australia Post.
Anna Bligh, the Australian Banking Association’s chief executive, has hailed this as a ‘major commitment’ by the banks to keep regional branches operational. She reiterated that while the trend is moving towards digital banking, the banks recognise that some customers still prefer, and indeed require face-to-face services.
The closure of almost 800 branches in regional areas between June 2017 and June 2023, as reported by the Australian Prudential Regulatory Authority (APRA), represents more than one-third of all regional bank branches. This has been a cause for concern for many, as it not only affects personal banking but also has implications for local businesses and the broader community.
Despite the commitment to regional areas, it’s important to note that bank branches have been on the decline across the country, not just in regional areas. According to APRA data, Westpac led the pack with 66 closures in the last year, followed by NAB with 53, ANZ with 39, and CBA with 32.
How have recent changes in banking services impacted you? Do you support the pause on branch closures, or do you think more action is needed to preserve in-person banking? We value your thoughts and invite you to share your experiences in the comments below.
Also read: NAB eyes bringing back decades-old banking tradition—what could it be?
My banking facility (Not a Big Four) is closing its branch and moving 7 kms away to a place almost impossible to get to by public transport and which is already understaffed. Their reason is that only a very small amount of its customers use the facility, preferring internet and ATM use. But they are also closing their ATM?? And as for Post Office banking – at times the wait queue at our Post Office is out the door! It will be the elderly who no longer drive who will be most affected.
Do people know that post offices charge for access to banking facilities, at a cost which is charged to the customer. I only found out years ago when looking at my banking details. We were charged $2 every time we paid a bill at the post office. They tell you that they are acting as an agent for the bank.