Banking on trouble: Westpac faces backlash over abrupt remote branch closure

In a recent development that has sparked controversy, a major financial institution has come under scrutiny for its abrupt closure of a branch in a remote area, leaving vulnerable customers in a precarious situation.

The move has raised questions about corporate responsibility and the impact on community access to essential services, prompting calls for transparency and accountability in service provision.


Westpac, one of Australia's major banks, was sanctioned for abruptly closing its branch in Tennant Creek, a remote area nearly 1000km south of Darwin.

This decision has not only inconvenienced the community but has also placed vulnerable customers in a precarious position, highlighting the stark reality of banking accessibility issues in remote regions.

The Banking Code Compliance Committee (BCCC) criticised Westpac, finding that the bank's actions have put vulnerable customers at a ‘high risk’ of harm.


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Westpac faced sanctions for suddenly shutting down a branch in a remote Northern Territory community. Credit: Shutterstock


The industry watchdog discovered that Westpac had significantly and consistently violated the Banking Code of Practice.

The sudden closure of the Tennant Creek branch affected approximately 3,400 customers, many of whom have been left stranded without access to essential banking services.

The closure profoundly impacted the community, with up to 30 customers a day seeking assistance from CatholicCare NT, a local community group, to access their banking services.

The situation was particularly dire for those who do not speak English as their first language and those who struggle with online banking services.


Ian Govey, the Chair of the BCCC, expressed his concern, stating that Westpac fell short of its promise to customers.

‘Their actions have had a significant and detrimental impact on many people within the Tennant Creek community,’ he stated.

‘Particularly for vulnerable customers, such as the elderly or those for whom English is not a first language.’

‘Westpac’s failure to respond promptly to community concerns and provide adequate support was troubling and appears to have disproportionately impacted on vulnerable customers,’ he added.


The BCCC's report was damning. It revealed that Westpac did not provide information about the transition and support arrangements with customers.

A letter was issued to customers 21 days after the branch closed, and a remote services team was deployed to the area five weeks after the closure.

‘This delay was unacceptable given the branch was closed with no notice, leaving customers unprepared to transition to other ways of banking,’ the report claimed.

‘The breaches posed a high risk of harm to customers—the members of the community who were most affected, or at risk of being most affected.’

‘Westpac’s response was inadequate and slow, despite concerns being raised by the community and the BCCC,’ it continued.


According to a spokesperson from Westpac, ongoing safety and security concerns in Tennant Creek necessitated the branch closure, prompting them to bypass standard procedures to ensure staff safety.

‘These circumstances were specific to the Tennant Creek branch and included damage to our branch and ATM,’ they said.

‘Customers were notified of the closure and alternative banking options via SMS ahead of closure, as well as posters in the branch.’

The spokesperson acknowledged that greater support could have been provided to customers during the closure and stated that they have since revised and reinforced their protocols for branch closures.


The repercussions of Westpac's sudden closure of a branch in a remote area, leaving vulnerable customers without essential services, highlight broader concerns about bank branch closures across the country.

Earlier this year, Westpac announced a series of closures affecting local communities, raising questions about accessibility to banking services, particularly for elderly and remote residents.

These closures have sparked debates about corporate responsibility and its impact on community welfare, prompting calls for greater transparency and support during such transitions.
Key Takeaways
  • Westpac was sanctioned for abruptly closing a branch in a remote Northern Territory community, negatively impacting customers.
  • The Banking Code Compliance Committee found Westpac breached the Banking Code of Practice by not supporting customers adequately.
  • Vulnerable customers, including the elderly and those with limited English skills, were left without proper access to banking services.
  • Westpac acknowledged the shortcomings in its closure procedure and has since reviewed and strengthened its branch closure protocols.
Have you been affected by a branch closure? How have you managed your banking needs during this time? We invite you to share your thoughts and experiences in the comments below.
 
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There are clear hints in the article that this was a set of circumstances unique to Tennant Creek. It's not difficult to read between the liners and see safety for staff was one of the considerations as well as having the premises and atm smashed up.

More to this than meets the eye I think.

Maybe some of those 3400 community people who have been impacted could have seen a different outcome if they had worked together to ensure staff were safer and the premises protected from getting smashed up by no doubt just a few angries in the community.
 
It's Westpac, you can access your account at the Post Office. Another media beat-up.
 
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Reactions: Kitterly
I understand they have a duty of care to their staff, but if that is the case they may as well close all banking premises as they all have the potential of putting staff at risk, or provide protective measures as they would elsewhere. As far as ATMs go, that is a Banking Industry supported device that has always been open to undesirable attention, and I dare say few of those outside establishments have not been tampered with. Put them inside Hotels and other establishments where they can be scrutinised, most of this could be avoided if the Judiciary did their job though imo.
 
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I understand they have a duty of care to their staff, but if that is the case they may as well close all banking premises as they all have the potential of putting staff at risk, or provide protective measures as they would elsewhere. As far as ATMs go, that is a Banking Industry supported device that has always been open to undesirable attention, and I dare say few of those outside establishments have not been tampered with. Put them inside Hotels and other establishments where they can be scrutinised, most of this could be avoided if the Judiciary did their job though imo.

I once spoke to a Coles honcho about the reason for closing a store. His response was that it had the worst shoplifting record in the state. I think there were other reasons as well, but it sounds like this was one of them.
They didn't close all stores though, even though have the potential for shop lifting.

I think the problem was the speed of closure and the really poor communication to the community by the bank.

If the speed was due to safety aspects or an imminent escalation of, then the article did not do enough as regards explanation. But it does seem odd Westpac would vary from the normal procedures without extremely good reasons especially in view of public opinion about closures. I guess that's why the reading between the lines happens.

There's a lot more to this story I reckon.
 
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"....those for whom English is not a first language.’🤔

Is it even their second language? Teach them English in an English spoken country.

To get some visas here even people from the UK have to pass an English test!!🙄
 
Banks are not upholding their end of the bargain. They want our money but give nothing in return. The government needs to open their own banks.
If I had a business where myself or staff were constantly in danger, I would close the business. All well and good to say the government needs to open their own banks, that does not stop the violence and damange, just more that the poor tax payer has to fork out for a minority, who by the way want self government.
 
It's Westpac, you can access your account at the Post Office. Another media beat-up.
Try and get a house mortgage, personal loan, credit card applications or insurance from a Post Office.

Bank@Post is a poor bare bones excuse for a bank branch, providing only withdraw, deposit and account balance facilities.

Useless as tits on a bull.
 
Oh well, I suppose I once lived in a country that is far more violent than Australia and the Westpac Bank was quite happy to keep open its assorted Branches. There were no bars along the counter to protect bank staff from harm, mayhem and murder and the branches were quite commonly full of people with whom one would not want to pick a fight, let alone consider that idea.

Headline in newspapers: Westpac Wimps Out.
 
"....those for whom English is not a first language.’🤔

Is it even their second language? Teach them English in an English spoken country.

To get some visas here even people from the UK have to pass an English test!!🙄
You realise there are a large number of languages spoken by indigenous communities - they did not get a say when they had to speak English.
 
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You realise there are a large number of languages spoken by indigenous communities - they did not get a say when they had to speak English.
You realise that when the Romans, the Anglo-saxons, the the Vikings and the Normans invaded the UK and Ireland that there were a large number of local people who spoke the then indigenous languages and did not get a say when they had to learn successively Latin, Anglo-saxon, "Viking" and Norman-French . Welsh is still the first language in parts of Wales, Manx still survives , Scots Gaelic is still in use and Cornish Gaelic is alive in written form and maybe a few speakers are slowly reviving it.

And Australia should be teaching our children Mandarin from an early age in our schools as PR China is now of major importance globally and it is useful to understand the language of one's enemy.
 
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Reactions: marni
I can see a time, although not until I am gone when there will be no physical banks and every thing will be done on line
 
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Oh well, I suppose I once lived in a country that is far more violent than Australia and the Westpac Bank was quite happy to keep open its assorted Branches. There were no bars along the counter to protect bank staff from harm, mayhem and murder and the branches were quite commonly full of people with whom one would not want to pick a fight, let alone consider that idea.

Headline in newspapers: Westpac Wimps Out.
Sounds like Papua New Guinea
 
It's Westpac, you can access your account at the Post Office. Another media beat-up.
Absolutely correct you can go to Post Office and when our only Bankwest closes in Mandurah, a thriving town south of Perth, the line at the Post Office will get even longer than it is currently.
 
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I can see a time, although not until I am gone when there will be no physical banks and every thing will be done on line
yes that's want they want. Thousands of people get paid by cheque which will need to be deposited at the bank. How's that work if there's no bank?
 

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