Bankwest announces shocking move to digital-only banking
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In a surprising move, Bankwest, a major Australian bank, has announced its decision to close more branches across the country.
This move comes just months after the bank's CEO hinted at this 'almost solely digital' future, leaving many customers—particularly those in rural areas and older Australians—concerned about the accessibility and convenience of their banking services.
Bankwest, which serves 1.1 million customers across Australia, has recently announced the closure of three more branches in Western Australia.
The bank cited a 'surge in digital transactions and the rapid decline of demand for cash services' as the primary reasons for this decision.
This move follows the bank's controversial decision in 2022 to close all of its remaining 14 branches on the East Coast, leaving its only physical presence in Western Australia.
The bank's decision to close its Armadale branch in southeast Perth on 18 January was also met with dismay by many customers.
The bank has also announced the permanent closure of two more branches: Maddington in Perth's Southeast and Kununurra in far Northern Western Australia, 45km from the Northern Territory border.
These closures follow the bank's decision last year to close branches in Baldivis, South Perth, and Osborne Park, and Subiaco.
Bankwest's General Manager of Personal Banking, Scott Spittles, told a senate inquiry into bank closures in regional Australia that they 'expect to operate fewer branches in Bankwest in the future'.
'Bankwest's strategy is to grow as a digital and broker-first bank for home buyers,' he added.
Spittles also claimed that over-the-counter transactions have declined by around 44 per cent in the last three years, while digital payments now account for 97 per cent of all transactions.
The bank did not respond further to requests for comments on whether they were planning on closing more branches.
In a senate inquiry in September, CEO of Commonwealth Bank of Australia (CBA) Scott Comyn, the bank ultimately accountable for Bankwest, hinted at a further reduction of an already dwindling number of branches of its subsidiary bank.
'Strategically, Bankwest is moving to predominantly and probably over time almost solely digital only,' Mr Comyn said in the inquiry.
'For those who value and would like face-to-face services and in-branch services, those will be [more scarce] for Bankwest customers over time.'
He also revealed that the cost of providing cash to CBA customers totals $400 million a year—or $40 each for its 10 million customers.
In February 2022, Bankwest announced that they would no longer be accepting applications for new business accounts.
New and existing customers were then redirected and transitioned to CBA.
This news comes after a Bankwest customer was left ‘absolutely gobsmacked’ after their hundred-kilometre expedition just to withdraw cash ended in failure.
Graeme Reid, a resident of Latham, a rural town about 300km northeast of Perth, recently embarked on a 130km round trip along with his wife to the nearest Bankwest branch in Dalwallinu.
The purpose of their journey was simple: to withdraw $300 in cash.
However, upon arrival, Reid's wife was denied the withdrawal and was advised by the teller to visit the post office for the withdrawal instead.
You can read more about this incident here.
What are your thoughts on this shift towards digital banking? Have you been affected by the closure of a local bank branch? Share your experiences and thoughts in the comments below.
This move comes just months after the bank's CEO hinted at this 'almost solely digital' future, leaving many customers—particularly those in rural areas and older Australians—concerned about the accessibility and convenience of their banking services.
Bankwest, which serves 1.1 million customers across Australia, has recently announced the closure of three more branches in Western Australia.
The bank cited a 'surge in digital transactions and the rapid decline of demand for cash services' as the primary reasons for this decision.
This move follows the bank's controversial decision in 2022 to close all of its remaining 14 branches on the East Coast, leaving its only physical presence in Western Australia.
Bankwest announced the closure of more branches in Western Australia. Image source: Bankwest.
The bank's decision to close its Armadale branch in southeast Perth on 18 January was also met with dismay by many customers.
The bank has also announced the permanent closure of two more branches: Maddington in Perth's Southeast and Kununurra in far Northern Western Australia, 45km from the Northern Territory border.
These closures follow the bank's decision last year to close branches in Baldivis, South Perth, and Osborne Park, and Subiaco.
Bankwest's General Manager of Personal Banking, Scott Spittles, told a senate inquiry into bank closures in regional Australia that they 'expect to operate fewer branches in Bankwest in the future'.
'Bankwest's strategy is to grow as a digital and broker-first bank for home buyers,' he added.
Spittles also claimed that over-the-counter transactions have declined by around 44 per cent in the last three years, while digital payments now account for 97 per cent of all transactions.
The bank did not respond further to requests for comments on whether they were planning on closing more branches.
In a senate inquiry in September, CEO of Commonwealth Bank of Australia (CBA) Scott Comyn, the bank ultimately accountable for Bankwest, hinted at a further reduction of an already dwindling number of branches of its subsidiary bank.
'Strategically, Bankwest is moving to predominantly and probably over time almost solely digital only,' Mr Comyn said in the inquiry.
'For those who value and would like face-to-face services and in-branch services, those will be [more scarce] for Bankwest customers over time.'
He also revealed that the cost of providing cash to CBA customers totals $400 million a year—or $40 each for its 10 million customers.
In February 2022, Bankwest announced that they would no longer be accepting applications for new business accounts.
New and existing customers were then redirected and transitioned to CBA.
This news comes after a Bankwest customer was left ‘absolutely gobsmacked’ after their hundred-kilometre expedition just to withdraw cash ended in failure.
Graeme Reid, a resident of Latham, a rural town about 300km northeast of Perth, recently embarked on a 130km round trip along with his wife to the nearest Bankwest branch in Dalwallinu.
The purpose of their journey was simple: to withdraw $300 in cash.
However, upon arrival, Reid's wife was denied the withdrawal and was advised by the teller to visit the post office for the withdrawal instead.
You can read more about this incident here.
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