Bendigo Bank closes several country branches leaving older Australians struggling to manage
- Replies 19
At 94 years old, the thought of driving a two-hour, more than 120km round trip to do her banking is too much for Esme Rash.
"You need a bank. The bank is the backbone of any small town, and we've been lucky to have Bendigo Bank, but now they've cut us off," she told 7.30.
Ms Rash is a Bendigo Bank customer in the South Gippsland town of Yarram.
At the start of July, the bank announced it would be closing its Yarram branch alongside nine others across Australia over the next two months, as well as its entire agency network.
The 'tier two' bank, which has the second largest regional branch network in the country and claims to have more branches per customer than any other Australian bank, has blamed declining customer interactions and increasing costs for the closures.
The Bendigo Bank branch is the last remaining in Yarram, which was once home to five banks.
"I know it's very hard to select one town against another, but they need to really look at things when they close them down. There are an awful lot of people in this town that are very upset," Ms Rash told 7.30.
"More than 99 per cent of all bank transactions are now done online. And nevertheless, we still have one of the largest branch footprints in the OECD," Former ABA CEO Anna Bligh told 7.30.
Ms Rash believes "the world is trying to get rid of cash".
"In small towns, they'll never put signs in their windows that [say] card-only. It can't happen," she said.
Once the Yarram branch closes, the nearest Bendigo Bank branch is in Traralgon, 63 kilometres away.
The bank has pointed its customers to alternative banking options, including the local post office, just 35 metres from its soon-to-be-closed branch.
Australia Post offers a limited range of face-to-face banking services known as Bank@Post and there are more than 3,300 outlets across the country.
The service is paid for by banks and offers basic banking functions such as withdrawing and depositing cash, cashing cheques, paying bills and checking account balances.
However, Ms Rash prefers face-to-face banking and the security of an established branch.
"You go to a bank for your privacy, you go to ask them questions, you pop in when you think you might need some money and you get it out," she said.
"It takes [people's] independence away from them when they can't just walk in and get their money out of their bank."
Fellow local Wendy Pope agreed.
"I think it's quite sad. I didn't think Yarram would ever come to this," she said.
"For the people who have to go out of town [for banking], they are also going to go shopping there as well. And I think it'll be a downturn for the little town itself," Ms Pope said.
Jeff Amos, the secretary of Yarram Country Club, shared a similar sentiment.
"A lot of people would say it's the beginning of the end," he told 7.30.
"I've seen a few other towns in a few places around Victoria that the bank pulls out, the town gradually declines, and here I can see the same sort of thing happening."
Australia Post's limited banking offerings are good for smaller transactions but have shortfalls when it comes to business banking.
The maximum daily deposit is $10,000, which means the club will now need to travel to Traralgon by road to process large amounts of cash at the closest branch.
They're looking into the cost of hiring an armed cash transfer business to transfer the money securely.
"With that sort of money that we're talking, we can't afford to just have a staff member wander and drive to a bank," Mr Amos said.
The club's chairperson, Margaret Ford, agreed.
"You'd be endangering the life of your staff member, which is not something that we want to do," she said.
In a statement to 7.30, Bendigo Bank apologised to customers for the inconvenience and said it was "working hard to support its people and customers impacted by the changes".
"We recognise some customers, such as those experiencing vulnerability, may experience greater impacts, and encourage these customers to contact us so we can better support them through the transition," the statement said.
"Bendigo Bank remains committed to its physical network and the personalised interactions that occur in our branches every day."
"To preserve what makes it unique, the Bank must balance its physical network presence with the need to continue investing in the changing preferences of its 2.7 million customers."
A federal government inquiry into bank closures in regional Australia handed down eight recommendations in May 2024 to stem the impacts of branch closures.
Victorian Labor Senator Raff Ciccone sat on the inquiry and said: "One of the main items that we took from the inquiry was how important our branches are, particularly for people in the community who don't have access to or don't have the ability to do online banking."
"I think the banks need to look at themselves and not blame the customer who is reliant on being able to access their money, their own money that they've earned and put into the bank to invest," Mr Ciccone said.
The inquiry's recommendations included investigating the feasibility of establishing a publicly owned bank and a Regional Community Banking Branch Program (RCBBP), the urgent establishment of a mandatory banking code of conduct, and an expansion of the banking services offered by Australia Post.
When the federal government announced a moratorium on regional branch closures with the big four banks, it cited a 36 per cent drop in the number of regional bank branches since 2017.
Last week National MPs wrote to Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino, calling on the government to extend the moratorium to other smaller banks and to immediately table a response to the inquiry's recommendations.
Financial Services Minister Daniel Mulino declined to be interviewed by 7.30.
On Bendigo Bank's decision to close 10 branches across Australia, Mr Ciccone said: "I think it's pretty sad that this bank, who claims to be a bank for the community for many regional communities across Australia, is going down this path like many of the other big banks across Australia."
"We want to see community banks like the Bendigo Bank and others also come to the table and also make statements to their bank holders that they will also not close these branches," he said.
Written by Mike Lorigan, ABC News.
"You need a bank. The bank is the backbone of any small town, and we've been lucky to have Bendigo Bank, but now they've cut us off," she told 7.30.
Ms Rash is a Bendigo Bank customer in the South Gippsland town of Yarram.
At the start of July, the bank announced it would be closing its Yarram branch alongside nine others across Australia over the next two months, as well as its entire agency network.
Bendigo Bank has blamed declining customer interactions and increasing costs for branch closures. (ABC News: Christopher Gillette)
The 'tier two' bank, which has the second largest regional branch network in the country and claims to have more branches per customer than any other Australian bank, has blamed declining customer interactions and increasing costs for the closures.
The Bendigo Bank branch is the last remaining in Yarram, which was once home to five banks.
"I know it's very hard to select one town against another, but they need to really look at things when they close them down. There are an awful lot of people in this town that are very upset," Ms Rash told 7.30.
Taking 'independence away'
A July 2025 report by the Australian Banking Association (ABA) found that 99.3 per cent of customer-bank interactions are occurring via digital channels."More than 99 per cent of all bank transactions are now done online. And nevertheless, we still have one of the largest branch footprints in the OECD," Former ABA CEO Anna Bligh told 7.30.
Ms Rash believes "the world is trying to get rid of cash".
"In small towns, they'll never put signs in their windows that [say] card-only. It can't happen," she said.
Once the Yarram branch closes, the nearest Bendigo Bank branch is in Traralgon, 63 kilometres away.
Yarram locals will need to head to Traralgon if they want to do their personal banking at a physical branch. (ABC Gippsland: William Howard)
The bank has pointed its customers to alternative banking options, including the local post office, just 35 metres from its soon-to-be-closed branch.
Australia Post offers a limited range of face-to-face banking services known as Bank@Post and there are more than 3,300 outlets across the country.
The service is paid for by banks and offers basic banking functions such as withdrawing and depositing cash, cashing cheques, paying bills and checking account balances.
Australia Post offers a limited range of face-to-face banking services. (ABC News: Laura Bevis)
However, Ms Rash prefers face-to-face banking and the security of an established branch.
"You go to a bank for your privacy, you go to ask them questions, you pop in when you think you might need some money and you get it out," she said.
"It takes [people's] independence away from them when they can't just walk in and get their money out of their bank."
Yarram local Wendy Pope is worried for the town's economic future. (ABC News: Andrew Ware)
Fellow local Wendy Pope agreed.
"I think it's quite sad. I didn't think Yarram would ever come to this," she said.
'Beginning of the end'
Many in Yarram fear Bendigo Bank's departure will be the start of an economic decline for the town."For the people who have to go out of town [for banking], they are also going to go shopping there as well. And I think it'll be a downturn for the little town itself," Ms Pope said.
Jeff Amos, the secretary of Yarram Country Club, shared a similar sentiment.
Yarram Country Club secretary Jeff Amos and the club's chair, Margaret Ford. (ABC News: Andrew Ware)
"A lot of people would say it's the beginning of the end," he told 7.30.
"I've seen a few other towns in a few places around Victoria that the bank pulls out, the town gradually declines, and here I can see the same sort of thing happening."
Australia Post's limited banking offerings are good for smaller transactions but have shortfalls when it comes to business banking.
The maximum daily deposit is $10,000, which means the club will now need to travel to Traralgon by road to process large amounts of cash at the closest branch.
The banking services offered by the post office aren't always a viable option. (ABC News: Cody Fenner)
They're looking into the cost of hiring an armed cash transfer business to transfer the money securely.
"With that sort of money that we're talking, we can't afford to just have a staff member wander and drive to a bank," Mr Amos said.
The club's chairperson, Margaret Ford, agreed.
"You'd be endangering the life of your staff member, which is not something that we want to do," she said.
In a statement to 7.30, Bendigo Bank apologised to customers for the inconvenience and said it was "working hard to support its people and customers impacted by the changes".
"We recognise some customers, such as those experiencing vulnerability, may experience greater impacts, and encourage these customers to contact us so we can better support them through the transition," the statement said.
"Bendigo Bank remains committed to its physical network and the personalised interactions that occur in our branches every day."
"To preserve what makes it unique, the Bank must balance its physical network presence with the need to continue investing in the changing preferences of its 2.7 million customers."
'Banks need to look at themselves'
The Financial Sector Union of Australia estimates that since 2020, 931 branches have closed across the country.A federal government inquiry into bank closures in regional Australia handed down eight recommendations in May 2024 to stem the impacts of branch closures.
Victorian Labor Senator Raff Ciccone sat on the inquiry and said: "One of the main items that we took from the inquiry was how important our branches are, particularly for people in the community who don't have access to or don't have the ability to do online banking."
"I think the banks need to look at themselves and not blame the customer who is reliant on being able to access their money, their own money that they've earned and put into the bank to invest," Mr Ciccone said.
Victorian Labor Senator, Raff Ciccone. (ABC News: Andrew Altree-Williams)
The inquiry's recommendations included investigating the feasibility of establishing a publicly owned bank and a Regional Community Banking Branch Program (RCBBP), the urgent establishment of a mandatory banking code of conduct, and an expansion of the banking services offered by Australia Post.
When the federal government announced a moratorium on regional branch closures with the big four banks, it cited a 36 per cent drop in the number of regional bank branches since 2017.
Last week National MPs wrote to Treasurer Jim Chalmers and Financial Services Minister Daniel Mulino, calling on the government to extend the moratorium to other smaller banks and to immediately table a response to the inquiry's recommendations.
Financial Services Minister Daniel Mulino declined to be interviewed by 7.30.
On Bendigo Bank's decision to close 10 branches across Australia, Mr Ciccone said: "I think it's pretty sad that this bank, who claims to be a bank for the community for many regional communities across Australia, is going down this path like many of the other big banks across Australia."
"We want to see community banks like the Bendigo Bank and others also come to the table and also make statements to their bank holders that they will also not close these branches," he said.
Written by Mike Lorigan, ABC News.
.png){kind=icon}
