Is your local branch closing? Customers react to controversial bank closures

A major banking decision has left many Australians questioning the future of their local branches.

What started as a routine business move quickly turned into a firestorm of criticism.

The closures, affecting a significant number of communities, have sparked intense debate about the future of regional banking services.


In a controversial move, People First Bank announced the closure of 18 branches nationwide, sparking outrage across regional communities.

The closures included 11 Heritage Bank branches and seven People’s Choice locations, with most of the affected branches in Queensland.

People First Bank, formed by the merger of Heritage Bank and People’s Choice Credit Union in March 2023, explained the closures would begin on 4 April.


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People First Bank announces major branch closures nationwide. Image source: Pexel/Pixabay


Chief Customer Officer Maria-Ann Camilleri defended the decision, citing the shift towards digital banking.

‘We know the important role branches play in local communities, so these decisions are only made after much careful consideration,’ Camilleri stated.

‘Increasingly, our customers are choosing ATMs, Internet Banking and our App for their day-to-day banking, with branch use now accounting for less than one per cent of all transactions. Less than 0.7 per cent of customers associated with these branches have used a branch monthly in the past year,’ she added.

The Queensland branches to close were located in Beenleigh, Brookside, Capalaba, Indooroopilly, Mermaid Waters, Nambour, Nerang, Noosa Civic, Strathpine, The Pines Elanora, and Victoria Point.

Seven People’s Choice branches in Seaford, Northpark, Victor Harbor, Gawler, Warrnambool, Maryvale, and Darwin were also set to shut.


The bank assured customers that alternative banking options would be provided, and all branch staff would be offered other roles.

However, Jason Hall, the Finance Sector Union’s national assistant secretary, strongly criticized the decision.

Hall accused the bank of putting profits ahead of people, calling it ‘an attack on regional communities that depend on local bank branches.’

‘These aren’t the first branch cuts of 2025, but they are the largest,’ Hall said, expressing his frustration with the closure of branches.


In response, Camilleri reiterated that the majority of customers, who have transitioned to digital services, would experience little disruption.

‘While these decisions are challenging, we need to prioritise the services our customers use most,’ Camilleri explained.

She emphasized the importance of reallocating resources to areas with higher demand, such as 24/7 contact centres and digital banking tools.

The closures follow a similar move by the Bank of Queensland, which recently announced it would shut 16 branches across the country in February.

The closures will impact locations in Queensland, WA, NSW, and Victoria, with customers now encouraged to turn to digital channels for their banking needs.


Meanwhile, NAB made a contrasting move, revealing it would extend its Saturday trading hours by opening 17 additional branches from 1 February.

This move follows a successful trial and adds to NAB’s ongoing efforts to meet the needs of customers in cities, even though 93 per cent of their transactions are conducted online.

Between 2017 and 2023, nearly 800 bank branches in regional areas were closed.

The Australian Prudential Regulatory Authority also reported that more than 8300 bank-owned ATMs have been removed in the past seven years.

Key Takeaways
  • People First Bank announced the closure of 18 branches across Australia, sparking backlash from regional communities, with most closures in Queensland.
  • Chief Customer Officer Maria-Ann Camilleri defended the move, citing the increasing shift to digital banking, with branch usage now accounting for less than one per cent of transactions.
  • The closures follow similar decisions by other banks, including the Bank of Queensland, which also announced branch cuts, while NAB extended Saturday trading hours to meet customer needs.
  • Between 2017 and 2023, nearly 800 regional bank branches were closed, and over 8300 bank-owned ATMs were removed in the past seven years.

As more banks shift towards digital services, what does the future hold for regional communities that rely on local branches? Share your thoughts in the comments below.
 

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We were all delighted when a new shopping centre opened, and only 40 km from home. What a wonderful thing, and it had a Suncorp Bank!! So we moved our everyday account there, as it was so convenient -till it closed!! Then came another lifesaver in the form of the Bendigo Bank, so we moved our everyday account there, as it was so convenient, but then it closed!! Now we have no bank - the nearest being over 50km away, but not so convenient! Not to be caught out again, we have left our account with the Bendigo, but the worst thing is they took their ATM with them, and now it is $3 to use the generic one. Oh, how sad for us golden oldies, who like going to a real bank, with real staff, who know your name and greet you with a smile!!
 
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Reactions: deni67
Small local businesses often have an ATM which is becoming increasingly common with banks closing their doors. The only other option in a number of situations is over the counter banking at Australia Post, but they don’t have the flexibility of an ATM.
Some of those non-bank ATMs charge huge fees for you to withdraw money. One at my local IGA charges $3 per withdrawal with a maximum withdrawal amount of $200. What is "flexible" about that Ivory?
 
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The closing of the Seaford branch (in South Australia), means that they will shift 7kms away to a branch which is already notorious for it's long waiting times and not answering phones. It is also very difficult to get to via public transport or if you have difficulty walking. Age discrimination at its finest! The closure means that the ATM is also going.
That's disgusting - that's how they look after there valued customers, but this Whoever she is, Camilleri defends the closures, let hope she never finds herself in the same situation as she ages!
4 of those Peoples' Choice closures are in South Australia. I am sorry, but as usual, this has nothing to do with What people are doing or choosing to do. This is all about Profit!!! Sadly, this is one of the second-Tier players in the finance industry that people turned to because they were sick of the actions displayed by the big 4 banks. Now, they are proving that they are not an alternative, but the same animal with different coloured stripes.
So So True, couldn't have said it Better!
 
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We were all delighted when a new shopping centre opened, and only 40 km from home. What a wonderful thing, and it had a Suncorp Bank!! So we moved our everyday account there, as it was so convenient -till it closed!! Then came another lifesaver in the form of the Bendigo Bank, so we moved our everyday account there, as it was so convenient, but then it closed!! Now we have no bank - the nearest being over 50km away, but not so convenient! Not to be caught out again, we have left our account with the Bendigo, but the worst thing is they took their ATM with them, and now it is $3 to use the generic one. Oh, how sad for us golden oldies, who like going to a real bank, with real staff, who know your name and greet you with a smile!!
It is so true, that country feeling of real staff, spking to a real person! Regional areas really need the banks i have to say even so much more than the cities, who have the major shops that you can take monies out when you shop, but not everyone likes this, & many do not want internet banking, they like to work with cash - it also gives the surety that - yes it has been paid as you
get a receipt as well! And what about the folk who do not have a car in the regional, semi-regional, don't or can't drive, & do not wish to have a computer etc, or cannot afford to get one, let alone learn all the new fangled crap that goes with it, we are talking about our seniors, the ones that now need to be cared for and looked after, finally as they age. It is sad to feel, that as we age, our voices are really not listened to, which is a shame as once gone, gone with it is all the knowledge, wisdom, experience & sharing of a full life lived, that can help others with working suggestions, ideas, & insights!
 
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Love the terminology for the reason: "Increasingly, our customers are choosing ATMs, internet banking ... "
Why?
Might it just be because the banks are closing branches all over Australia, forcing customers to find another way other than the old face-to-face way of conducting their banking business?
Might it just be because it's cheaper to run an ATM or use a computer to comduct the bank's banking business?
Might it just be because the banks' profits are greater using technology rather than humans?
Might it just be because it's useless to conduct a conversation with a machine while you're standing helplessly out in the street?
Nah, none of these.
It's called "service".
And what can the "customers" do about it?
Sweet FA.
That's right Forcing others to find another way, that in itself is a form of control, which we have no say in - and they, the banks, just seem to be able to apply this, without us even having a choice -
what a shame there wasn't a law against That!
 
Now we have no banks that we can trust.. WE NEED A PEOPLES POST OFFICE BANK NOW
 
What service do you want that you're missing out on? 🤔

They are a company trying to make profits for shareholders. Move to North Korea if you don't like a capitalistic country.
Profits that can only be made with the customers monies! (most pple are not in the position of having the monies to invest or become a shareholder, that's Most People) - you know the customers that want to get some real cash out of their bank account!
 
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We are being forced toward a cashless society but then experience a surcharge when using a card in store. Some banks are now charging customers to access their own funds through an ATM. Our local Peoples First Bank is not on the list to close but I don’t use it because we are never able to get a disabled car park in the area and it’s a $50.00 round trip to use an Access Cab. I recently opened an account with another bank that I could access easier only to receive a letter two weeks after opening it to say I was not permitted to use it for other than face to face transactions. Banks wield the power, the customers screwed over!
We are being screwed....
 
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This is particularly sad for people in Beenleigh which is quite a small town located between the Gold Coast and Brisbane. I sincerely hope they will make arrangements with one of the shops to carry out the banking for people in this area.
 
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Why isn't Albanese and Chalmers responds to that.?
Why isn't Albanese and Chalmers stop putting a up to that crap and/or Legislate where people cannot be used as pawns by the Banks even though the Banks are making money and enriching themselves from the people.?
Why isn't Albanese and Chalmers refuse to allow Australia Post to be a full facility Bank when they are already handling a lot of that and they already have all the facilities in place to become a proper and fully operational Bank and offering full service to all people around Australia something which the Banks are failing dismally.?
Why are Albanese and Chalmers continuously treat Australians with contempt and not allow a little more competition and control over these rogue Banks.?
Why, Why, Why....
 
The "not computer savvy" excuse doesn't work these days.🙄 There's plenty of places to go for help if they need it.
This is what NSW does....
Don't try and defend the indefensible. What the Banks are doing is totally unwarranted and unjustified and, mark my words that there will be a day that you will regret what you saying and/or pushing unto others as you will be as smart as you are, or pretend to be, now.
In closing how do you propose many older people to go and attend to those classes when there are times that they have not the capability nor being physically good enough to go and do it.
Is this service going to be done in a face to face and in the old people's residences.?
 
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I am just thankful I am with Nab as they are going in the other direction. The one thing I don't understand is when they close a bank they take the ATM as well. Surely you need the ATM more than ever and that should stay even if the branch doesn't 🤔
They sell the ATM location to people like Armourgusrd who charge you upwards of $2.50 for eachnwithdrawl that you make
 
It Stinks...i am now 82 years of age.. People's Choice Closed our Port Adelaide branch 4/5 years ago. if i need to physically go to the bank...i have to Drive myself 7 kilometres find a park walk with my Walking stick to the Branch..Wait anywhere up to 20 + minutes to get to put money into my bank or get cash out because i couldn't do it what ever on line.
2023 & 2024 i went on holiday...i went to the bank informed them where i was going what countries & Cities...and Yet I COULD NOT ACCESS MY account..it was Frozen..on my return i challenged the bank & virtually got told i was an idiot..& did not know what I was talking about...
Well i am going overseas again in May..i will go to them again. & Inform them again...but i will be able to use MY ACCOUNT, MY MONEY...OR Transfer my Money from the People's Choice..to a Bank that will ALLOW ME To Use MY Account & Money outside of Australia.
A Thoroughly Disgusted account holder of in excess of 25 years..
Dianne M Dolman.
 
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It Stinks...i am now 82 years of age.. People's Choice Closed our Port Adelaide branch 4/5 years ago. if i need to physically go to the bank...i have to Drive myself 15 kilometres find a park walk with my Walking stick to the Branch..Wait anywhere up to 20 + minutes to get to put money into my bank or get cash out because i couldn't do it what ever on line.
2023 & 2024 i went on holiday...i went to the bank informed them where i was going what countries & Cities...and Yet I COULD NOT ACCESS MY account..it was Frozen..on my return i challenged the bank & virtually got told i was an idiot..& did not know what I was talking about...
Well i am going overseas again in May..i will go to them again. & Inform them again...but i will
 
It Stinks...i am now 82 years of age.. People's Choice Closed our Port Adelaide branch 4/5 years ago. if i need to physically go to the bank...i have to Drive myself 15 kilometres Round trip..,find a park walk with my Walking stick to the Branch..Wait anywhere up to 20 + minutes to get
 
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Why isn't Albanese and Chalmers responds to that.?
Why isn't Albanese and Chalmers stop putting a up to that crap and/or Legislate where people cannot be used as pawns by the Banks even though the Banks are making money and enriching themselves from the people.?
Why isn't Albanese and Chalmers refuse to allow Australia Post to be a full facility Bank when they are already handling a lot of that and they already have all the facilities in place to become a proper and fully operational Bank and offering full service to all people around Australia something which the Banks are failing dismally.?
Why are Albanese and Chalmers continuously treat Australians with contempt and not allow a little more competition and control over these rogue Banks.?
Why, Why, Why....
Because they couldn't Care Less - that's Why!
 
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Reactions: Kelpie
It Stinks...i am now 82 years of age.. People's Choice Closed our Port Adelaide branch 4/5 years ago. if i need to physically go to the bank...i have to Drive myself 15 kilometres find a park walk with my Walking stick to the Branch..Wait anywhere up to 20 + minutes to get to put money into my bank or get cash out because i couldn't do it what ever on line.
2023 & 2024 i went on holiday...i went to the bank informed them where i was going what countries & Cities...and Yet I COULD NOT ACCESS MY account..it was Frozen..on my return i challenged the bank & virtually got told i was an idiot..& did not know what I was talking about...
Well i am going overseas again in May..i will go to them again. & Inform them again...but i will
How dare they think they have the right to speak to pple in this way, i bet they wouldn't like it if someone spoke to their Mums like that! I'm not sure why you could not access your account, that it was frozen - you need to get advice on this from a Seniors Centre before you travel again & also further, you can't be away from Home and not be able to access your bank account!
 
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Hardly 'People First' any any stretch of the imagination. There's 2 reasons why I opened a Heritage account and my son also, 1) they were open on Sat morning and 2) were easy to access at Victoria Point shopping centre. Well both reasons have now been removed by The People First bank ....thank you so much. Guess what I'll be doing now?
 
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Seniors could assist by letting us know which banks will stay located in towns across Australia as I am one that will move all our funds to a branch that stays here.
Busselton WA
Go to your Local Member and push him/her to get Australia Bank approved to be a full Banker. Your money will be totally safe as it belongs to the Government AND all of us, and it will be open 100% of the time in wherever they will be Post Office. You can already withdraw money from Post Offices so why not doing the rest of your banking there as well.?
And, most importantly, it will force a hell of a lot of pressure to send a wake up call to the Banks.
Think about it people.
 

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