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