Banking used to be a teller, a cuppa, and a chat…now it’s a chatbot and ‘press 9 to hold’
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A quiet rebellion is brewing in the heart of regional Australia.
Local communities are rising up against a growing trend that many fear could wipe their towns off the map.
Now, a new alliance is demanding action before it’s too late.
For years, rural and regional areas across the country had watched in frustration as bank branches shut their doors for good.
Many of these towns were left without any local banking services—forcing residents, especially older Australians, to travel hours just to access their own money.
This growing crisis has prompted two dozen banks and organisations to form the Regional Banking Investment Alliance (RBIA), a group that plans to push back against what they describe as a cashless revolution with devastating human costs.
Alliance spokesperson Aaron Newman said the consequences of losing the last bank in a town extended far beyond inconvenience.
‘When a bank withdraws, and if they’re the last bank in town, for many of the smaller communities, it’s the continued impact of their ongoing viability into the future, which I think is one of the biggest concerns for people living there,’ he said.
The federal government had already stepped in to some extent—brokering a deal with the big four banks to pause regional closures until at least 2027.
But Newman warned that this agreement was only a temporary fix.
He urged the government to implement a permanent solution in the form of a regional services bank levy.
‘Conceptually, it would mean that banks that operate in regional or remote areas would receive the financial benefit of the levy, and the banks that don’t operate any regional presence will pay the levy,’ he said.
‘It’s a method of redistribution to compensate the subsidisation of providing those physical branches in regional and remote communities.
‘There is no cost to government in this way, and there’s also no cost to the consumer.’
Treasury had been exploring the idea, but no firm decision had been made.
If adopted, the levy could result in major financial consequences for some of the country’s biggest banks.
According to reprorts, Westpac could be forced to pay more than $100 million each year under the plan, with CBA facing around $75 million, Macquarie Bank and ING each at $75 million and $60 million respectively, and ANZ and HSBC potentially up for $20 million each.
While supporters of the plan said it would help keep small towns alive, it remained unclear whether political will would match the urgency felt on the ground.
If you’re wondering whether any of the big banks are doing things differently, there’s one major player that’s taking a surprising approach.
While many branches are closing, this bank is putting money back into regional services—backing up its promises with real investment.
Here’s what they’ve committed to, and why it might change the conversation.
Read more: Tired of your local bank disappearing? This Big Four player is flipping the script with a $55 million plan
What would your town lose if the last bank vanished overnight?
Local communities are rising up against a growing trend that many fear could wipe their towns off the map.
Now, a new alliance is demanding action before it’s too late.
For years, rural and regional areas across the country had watched in frustration as bank branches shut their doors for good.
Many of these towns were left without any local banking services—forcing residents, especially older Australians, to travel hours just to access their own money.
This growing crisis has prompted two dozen banks and organisations to form the Regional Banking Investment Alliance (RBIA), a group that plans to push back against what they describe as a cashless revolution with devastating human costs.
Cashless trend leaves regional towns stranded. Image source: Pexels/Pixabay
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
Alliance spokesperson Aaron Newman said the consequences of losing the last bank in a town extended far beyond inconvenience.
‘When a bank withdraws, and if they’re the last bank in town, for many of the smaller communities, it’s the continued impact of their ongoing viability into the future, which I think is one of the biggest concerns for people living there,’ he said.
The federal government had already stepped in to some extent—brokering a deal with the big four banks to pause regional closures until at least 2027.
But Newman warned that this agreement was only a temporary fix.
He urged the government to implement a permanent solution in the form of a regional services bank levy.
‘Conceptually, it would mean that banks that operate in regional or remote areas would receive the financial benefit of the levy, and the banks that don’t operate any regional presence will pay the levy,’ he said.
‘It’s a method of redistribution to compensate the subsidisation of providing those physical branches in regional and remote communities.
‘There is no cost to government in this way, and there’s also no cost to the consumer.’
Treasury had been exploring the idea, but no firm decision had been made.
If adopted, the levy could result in major financial consequences for some of the country’s biggest banks.
According to reprorts, Westpac could be forced to pay more than $100 million each year under the plan, with CBA facing around $75 million, Macquarie Bank and ING each at $75 million and $60 million respectively, and ANZ and HSBC potentially up for $20 million each.
While supporters of the plan said it would help keep small towns alive, it remained unclear whether political will would match the urgency felt on the ground.
If you’re wondering whether any of the big banks are doing things differently, there’s one major player that’s taking a surprising approach.
While many branches are closing, this bank is putting money back into regional services—backing up its promises with real investment.
Here’s what they’ve committed to, and why it might change the conversation.
Read more: Tired of your local bank disappearing? This Big Four player is flipping the script with a $55 million plan
What would your town lose if the last bank vanished overnight?
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