Statewide bank branch closure triggers outrage: 'This is an outrageous decision'

A recent announcement by the Commonwealth Bank has sparked a wave of criticism and concern, particularly from a group of financial industry workers.

The decision, which is set to affect 350 staff members, has been labelled as 'disgraceful' and an abandonment of the bank's customer base, especially those in regional and remote areas.



The bank's justification for the mass closure of all 60 Bankwest branches in Western Australia is the shift towards digital banking, as Bankwest Personal Banking Manager Scott Spittles cited that 97 per cent of transactions are now conducted online.

'As part of Bankwest's transition to a digital bank, we will no longer operate a physical branch footprint,' Spittles explained.


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Bankwest is set to close all of its 60 branches in Western Australia. Image source: Shutterstock.


However, Finance Sector Union (FSU) President Wendy Streets and other union representatives argued that the move is a betrayal of the bank's customers.

'This is a bank that makes in excess of $10 billion profit annually,' she pointed out.

'They can afford to keep banking in regional Australia.'



Streets highlighted the challenges faced by customers outside of urban centres ahead of the widespread shutdown.

'Once you get out of cities, connectivity is a real issue…even if they've got the equipment and they know how to do (online banking), which in lots of cases they don't, the actual connectivity is an issue.'

'So, you know, we've heard stories through the banking inquiry into the closure of regional and remote branches of people having to do their banking at midnight and 1 am.'

The FSU's National Assistant Secretary, Jason Hall, emphasised the impact on these groups, stating, 'This is an outrageous decision by Bankwest, which has completely abandoned its customer base in order to cut costs and become a digital bank.'

'A range of Bankwest customers will be badly affected including the most vulnerable in our community.'

'Worst affected will be the elderly, First Nations customers, people whose first language is not English, and others who are not computer literate.'

'Maintaining a branch network costs money. But surely keeping faith with a loyal customer base is an important principle when those same customers and the banking fees they pay, have been at the core of Bankwest's profitability for many years.'



Bank bosses also reiterated that the closures could be the last straw for some of its clientele.

'I hope to keep every single one of our customers,' Spittles said.

'I absolutely respect, though, that some may see a physical branch experience as really critical to them.'

The closure will happen in phases, with the busiest branches the first to be shut down.

The exact schedule of the closures will be finalised in the coming weeks.



This news comes after the Commonwealth Bank announced the closure of three more branches across the country.

Similarly, the bank explained that this decision is a response to a progressive decline in customer demand at the affected branches.

The branches in Coogee, New South Wales, Coolangatta, Queensland, and Adelaide’s Rundle Mall in South Australia closed their doors permanently last 1 March.

You can read more about this here.
Key Takeaways
  • Bankwest, Western Australia's oldest bank, is set on closing all 60 of its branches by the end of 2024 as it transitions to a digital-only operation.
  • The closure will impact 350 staff members.
  • The Finance Sector Union criticised the move for abandoning Bankwest's customer base.
  • Concerns about the impact on customers, particularly older Australians and those in regional areas have been raised.
Are you a Bankwest customer affected by these closures? Let us know your thoughts about this latest news below.
 
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hello, just saw an item, re CBA/ Bank West, and the person mentioned switching to PO,[auspost], well they are no better as they are also closing branches and along with changing to branches to licensed units, and lesser per area.
 
2008 CBA bought BankWest
Yep and in 2012 they closed my husband's business banking centre. All the clients were moved to a relationship manager 1000kms away, who would never be able to visit their enterprise to understand their banking needs properly. He was gutted coz he loved visiting clients and helping them. Money money money.
 
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Reactions: DLHM
hello, just saw an item, re CBA/ Bank West, and the person mentioned switching to PO,[auspost], well they are no better as they are also closing branches and along with changing to branches to licensed units, and lesser per area.
Just got a notification that Macquarie Bank, which is one of the larger small banks, no longer has an arrangement with Aus Post.
 
We use a CBA account only to deposit cash and then tfr straight away to another bank. Have to do it that way because two of our biggest expenses (rates and insurance) cannot be paid in cash!.
So we are being forced to use internet banking, that why the foot traffic into branches is declining. They are making us do it not us making them do their work.
 
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Reactions: Marj53
Disgusting, the banks have put profits before its customers, just how much profit is enough for them ?
If a new bank opened tomorrow that puts customers first and opened branches like the banks used too, I would close my account with Bankwest and open an account with them in a heartbeat!
 
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I moved to Beyond Bank eight years ago, it's a member owned bank. It's the best move I ever made.
People's blind loyalty to the Big 4 amazes me. They offer their customers no loyalty at all, offer no service and are totally focused on their profits and nothing else.
I moved to a member owned bank years ago too. Good move. 👍🏻
 
Absolutely shocked to see this, we have been Bankwest (R & I) customers for many, many years and now we can’t go to a branch for our banking needs. I feel for the older generation who don’t have a grasp of online banking and why should they. Change of banks for us is on the cards.
 
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Two words - Post Office
Unfortunately the Post Office isn't equipped to be a Bank.

They don't have vaults and they have a lot of other work to do.

All of the LPOs in my area are extremely busy most of the time.

Sure they are, currently, willing to provide cash for bank customers.

But how long do you think it will be possible for them to keep doing that, when every bank is closed?

Just like Woollies and Coles they will, most probably, soon be restricting how much cash you can get and probably the hours when Banking Services are available.
 
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Reactions: DLHM
I feel for remote Australians without a bank. Not everyone can use or want to use the bank's online banking system or mobile app.
I suspect the banking closures are also because there's no upselling from staff with insurance policies. Banks have outsourced all of these now.
 
Bull shit. !!! The banks don’t care about customers. I have been forced to use on line banking because of branch closures if I want to keep my BankWest account, which at the moment I feel like closing . I was surprised to find it relatively easy to use on line banking but I still don’t feel at ease using this system .
 
“I hope to keep all of our customers”. Your dreaming matey. Their loyalty has just flown the coop like you have. If I had the money and nouse I would set up a mobile banking business serving rural only. Now that is a great idea. ANYONE OUT THERE.?
Time for Bank Australia to start something big!
 

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