3,000 banks gone! Here’s what it really means for your money

When Esme Rash needs to visit her bank, it’s no quick errand—it’s a two-hour round trip from her home in Yarram, South Gippsland.

Her local branch shut its doors, forcing her—and countless other regional seniors—to adapt to a banking system that feels more distant than ever.

For many older Australians, what was once a simple weekly routine has turned into a logistical challenge.

The story of Esme’s long drive isn’t an isolated one.

New data shows 155 bank branches closed across Australia in the past financial year, a slowdown from previous years—but one that continues to hit regional and rural communities the hardest.

According to the Australian Prudential Regulation Authority (APRA), 333 ATMs also vanished from local towns, compounding accessibility issues for seniors who still depend on cash.

In just five years, more than 3,000 bank branches have disappeared nationwide.

The numbers behind the closures

Commonwealth Bank led the closures with 49 branches shut—7 per cent of its network—followed by ANZ with 21 closures, Westpac with 25, and NAB with just three.

The pain wasn’t shared equally across the map either—Western Australia lost 13 per cent of its branches, compared to 4 per cent in other states.

When digital promises meet real-world challenges

Banks have defended their decisions by pointing to the rise of digital banking, but for many seniors, the transition is far from simple.

Interestingly, the narrative that seniors can’t or won’t adapt to online banking doesn’t always hold up.

ANZ research shows that 81 per cent of Australians aged 65 and over actually prefer internet banking, proving that many are more digitally savvy than they’re given credit for.

The real issue lies not in ability but in access, trust, and the loss of long-standing personal relationships built through local branches.

The real cost of closure

The financial fallout from these closures has rippled through entire communities.

In Yarram, the local Country Club now spends around $20,000 annually on armed cash transport services after its branch closure—a crushing cost for a volunteer-run organisation.

For seniors, the burden adds up quickly, from taxi fares of up to $50 for a round trip to parking fees and travel costs that eat into fixed incomes.

When Bank@Post reaches breaking point

Government attempts to fill the gap with Bank@Post services have offered only partial relief.

In Queenstown, Tasmania, after the Bendigo Bank branch closed, the local Australia Post store took on banking duties—but demand quickly outstripped supply, with the outlet reportedly running out of cash twice.

Across the country, Bank@Post locations have dropped to 3,365—down by 62 from last year—while ATMs have shrunk from 13,814 in 2016–17 to just 5,143 today.

Government response and reform

The growing strain has pushed policymakers to act.

A Senate inquiry was launched to investigate why banks are leaving regional Australia behind and how closures affect customers and communities.

The Regional Banking Taskforce, in its February 2025 report, urged banks to consult with communities before shutting down, invest in digital literacy, and maintain fair access to cash.

One recommendation even calls for banking to be reclassified as an essential service.

There’s some light on the horizon.

Reforms introduced in September 2025 brought genuine relief for pensioners and seniors—no maintenance fees, better savings rates, free ATM access, and potential refunds for past charges.

The path forward for seniors

Not all outcomes have been negative either.

Margaret from Bendigo, who once felt stranded when her branch closed, later found her digital-first bank offered surprising perks: no account fees, a 4.2 per cent interest rate (compared to her old 0.1 per cent), and free international transactions—earning her more than $2,000 a year on a $50,000 balance.

Looking ahead: A banking system in transition

While banks have promised to maintain regional branches until at least mid-2027, uncertainty looms beyond that.

Regional and remote communities—often home to higher numbers of elderly, Indigenous, and disabled residents—risk being cut off from essential financial services altogether.

In response, alternative models like community-owned banks and Indigenous credit unions have started filling the gap, with organisations such as the Traditional Credit Union providing services to remote areas like the Tiwi Islands.

The challenge ahead isn’t just about preserving access—it’s about inclusion.

‘Too many older Australians are being left behind in the rush towards online banking and a cashless society,’ warns Council on the Ageing CEO Patricia Sparrow.

As banks continue their digital evolution, the ones that prioritise connection and accessibility for every generation will be the ones that truly endure.

While some communities are still adjusting to the loss of their local branches, others have taken a different path—choosing to switch banks altogether in search of better deals and more flexibility.

Recent changes in fees, interest rates, and digital access have made many rethink where they keep their savings and how they manage their money day to day.

If you’ve been considering making a change yourself, this next story explores what’s driving the big banking shake-up and what it could mean for your finances.

Read more: The Great Bank Switch of 2025: Why Australian seniors are finally ditching their old banks

Have you noticed banking changes in your town? Have local post offices been able to fill the gap—or are you travelling further just to access your money?