The next time you drive past an empty bank building in a country town, consider this sobering reality: residents in very remote areas now travel up to 95 kilometres just to find the nearest cash withdrawal point.
This stark statistic from the Reserve Bank of Australia reveals the true cost of the banking exodus that has swept through regional Australia, with 95 per cent of residents in very remote areas residing within 95km of a cash withdrawal point.
For context, that's like driving from Ballarat to Melbourne just to access your own money.
But a bold new proposal could turn the tide. The Regional Banking Investment Alliance wants Australia's banking giants to cough up $153 million annually to keep rural branches alive—and they're not asking politely.
The great regional banking retreat
The numbers are staggering. Some 36 per cent of bank branches in regional Australia have shut their doors since 2017, with 230 branches closing over the year to June 2024. That's nearly one closure every working day.
Data from the Australian Prudential Regulation Authority show that the number of bank branches declined by nearly 50 per cent between 2011 and 2024—a financial infrastructure collapse that would make headlines if it happened to any other essential service.
'Without regulatory intervention, banks will continue to close branches and communities will pay the price'
The human cost hits hardest in remote communities. For 95 per cent of the population living in remote areas, the furthest distance they have to travel to reach the nearest bank-owned branch and ATM has increased by 31 km and 12 km respectively since 2017.
Take the recent closure of ANZ's Bega branch on the NSW South Coast. Customers now face a trip to Batemans Bay for their closest branch—a round trip that can easily consume half a day.
A $153 million lifeline proposal
Alliance spokesperson Aaron Newman has put forward what he calls a 'community service obligation' (CSO) - essentially a levy on banks that don't serve regional areas to fund those that do.
'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,' Newman explained.
How the CSO would work
$153 million annual levy across the banking industry
About $300,000 per eligible regional branch
Represents just 0.17 per cent of major banks' total operating income
Funded through existing financial sector levy mechanisms
Branches must provide cash handling, home loans, and trained staff to qualify
The proposal has precedent. Similar levies already fund regulatory bodies like APRA, ASIC, and AUSTRAC. Simon Lyons, CEO of Traditional Credit Union, frames it as a David versus Goliath battle.
'The Big Four alone made more than $31 billion in profit last year, yet they're walking away from the communities that actually helped to build their success,' he said.
The countdown to 2027
There's a temporary reprieve in place. The federal government has imposed a moratorium on branch closures until the end of July 2027, with NAB accepting a new agreement and Commonwealth Bank and Westpac extending their previous arrangements.
But regional communities are asking: what happens on August 1, 2027?
Those branches in regional Australia are really the epicentre of some of the commercial activity in those towns. You take that away and other service providers then wonder whether they should be a part of it.
Before you know it, the vitality and the richness of living in that community is diminished, warns Australian Small Business and Family Enterprise Ombudsman Bruce Billson.
Why seniors are caught in the crossfire
The digital banking revolution hasn't left everyone behind equally. While 81 per cent of people over 65 used internet banking in the past 12 months, significant barriers remain.
80 per cent of people 65 and older find it difficult to keep up with tech changes, according to Choice consumer advocacy group. The challenges are both technological and financial.
Barriers facing older Australians with digital banking
- Half of low-income households have difficulty paying for home internet, with 20-25 per cent of pensioners living in poverty
- People with age-related impairments face challenges with voice communication and small font sizes on screens
- Frequent security checks and automatic logouts create frustration, especially for those with stiff fingers or poor eyesight
- Only 26 per cent of people over 65 years use mobile banking apps, compared to 81 per cent using internet banking
The irony is stark. An estimated 575,000 people are blind or vision impaired in Australia, with more than 70 per cent over the age of 65, while seventy-three percent of Australians aged over 70 have mild to severe hearing loss. Yet these are precisely the customers being pushed toward digital-only banking.
Alternative solutions emerging
While the CSO proposal gains momentum, interim solutions are expanding. Commonwealth Bank, Westpac and NAB have all reached agreements to provide banking services at post offices through Bank@Post, with ANZ also agreeing to join the scheme.
Bank@Post offers a limited range of banking services, including cash and cheque deposits, money withdrawals, and account balance checks within Australia Post branches. While not a complete replacement for full-service branches, it provides crucial access in many communities.
Did you know?
Did you know?
98 per cent of branch closures have occurred within three kilometres of another branch of the same bank or one of 3,540 face-to-face Bank@Post locations across the country. However, this statistic doesn't account for the reduced services available at Australia Post compared to full bank branches.
The bigger picture
The banking industry argues that change is customer-driven. 98.9 per cent of all bank transactions are digital and customers 'report the highest satisfaction using this channel', according to Australian Banking Association CEO Anna Bligh.
But people residing in regional and remote areas are more likely to be socio-economically disadvantaged, have lower levels of digital inclusion, and are more prone to natural disasters that can limit the ability to use digital payments—all characteristics associated with higher reliance on cash.
The Senate inquiry's findings were unambiguous: 'Bank branch closures are devastating to many regional and remote communities. It is clear that the current model of banking industry self-regulation has failed to shelter regional Australia from the damaging impacts.
Along with an increased need for cash, regional and remote communities are more dependent on face-to-face services.'
What you can do
If you're affected by bank closures, several options exist:
- Contact your local MP to voice concerns about banking services
- Explore Bank@Post services for basic transactions
- Consider switching to community banks or credit unions with stronger regional presence
- Join local advocacy groups pushing for better banking access
What This Means For You
The $153 million question isn't really about money—it's about whether Australia believes access to banking is an essential service worth preserving in every community. With the 2027 moratorium deadline looming, the clock is ticking for regional Australia.
The CSO proposal offers a practical path forward, but it will require political will and industry cooperation. Until then, communities continue to count the kilometres to their nearest bank, wondering if help will arrive before the last branch closes its doors.
Have you been affected by a bank branch closure in your area? How have you adapted to changes in banking services? Share your experience and let us know what solutions have worked for you.
Original Article
https://au.finance.yahoo.com/news/1...to-cashless-trend-they-need-us-231842744.html
Access to Cash in Australia | Bulletin—January 2025 | RBA
Cited text: This compares with 32 km for people living in remote areas; for those residing in very remote areas, the distance is nearly triple that figure (95 km)...
Excerpt: with 95 per cent of residents in very remote areas residing within 95km of a cash withdrawal point
https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html
Banks banned from closing regional branches until 2027
Cited text: Some 36 per cent of bank branches in regional Australia have shut their doors since 2017.
Excerpt: Some 36 per cent of bank branches in regional Australia have shut their doors since 2017
https://www.smartcompany.com.au/finance/banks-banned-closing-regional-branches-until-2027/
Big banks extend branch closure moratorium to 2027 | FST Media
Cited text: “Our industry will continue to work with the Government to ensure banking services continue to meet the needs of customers across regional Australia.”...
Excerpt: Some 36 per cent of bank branches in regional Australia have shut their doors since 2017
https://fst.net.au/financial-services-news/big-banks-extend-branch-closure-moratorium-to-2027/
Access to Cash in Australia | Bulletin—January 2025 | RBA
Cited text: The broad pace of branch closures has continued, with 230 branches closing over the year to June 2024.
Excerpt: 230 branches closing over the year to June 2024
https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html
Access to Cash in Australia | Bulletin—January 2025 | RBA
Cited text: Data from the Australian Prudential Regulation Authority (APRA) show that the number of ADI branches declined by nearly 50 per cent (3,239 branches) b...
Excerpt: Data from the Australian Prudential Regulation Authority show that the number of bank branches declined by nearly 50 per cent between 2011 and 2024
https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html
Access to Cash in Australia | Bulletin—January 2025 | RBA
Cited text: Moreover, the absolute distance to reach ADI-owned cash services for residents in remote areas has increased substantially over time and by significan...
Excerpt: For 95 per cent of the population living in remote areas, the furthest distance they have to travel to reach the nearest bank-owned branch and ATM has increased by 31 km and 12 km respectively since 2017
https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html
TRANSCRIPT: Regional bank branch closures | ASBFEO
Cited text: So, if you do bank with ANZ in Bega, your closest branch come the 23rd of October will be in Batemans Bay.
Excerpt: Customers now face a trip to Batemans Bay for their closest branch
https://www.asbfeo.gov.au/media-centre/media-releases/transcript-regional-bank-branch-closures
Banks banned from closing regional branches until 2027
Cited text: The federal government has imposed a moratorium on branch closures until the end of July 2027.
Excerpt: The federal government has imposed a moratorium on branch closures until the end of July 2027, with NAB accepting a new agreement and Commonwealth Bank and Westpac extending their previous arrangements
https://www.smartcompany.com.au/finance/banks-banned-closing-regional-branches-until-2027/
Banks banned from closing regional branches until 2027
Cited text: Treasurer Jim Chalmers said the moratorium came after NAB accepted a new agreement to not close regional branches, with the Commonwealth Bank and West...
Excerpt: The federal government has imposed a moratorium on branch closures until the end of July 2027, with NAB accepting a new agreement and Commonwealth Bank and Westpac extending their previous arrangements
https://www.smartcompany.com.au/finance/banks-banned-closing-regional-branches-until-2027/
TRANSCRIPT: Regional bank branch closures | ASBFEO
Cited text: Those 218 branches in regional Australia, they are really the epicentre of some of the commercial activity in those towns. You take that away and othe...
Excerpt: Those branches in regional Australia are really the epicentre of some of the commercial activity in those towns.
https://www.asbfeo.gov.au/media-centre/media-releases/transcript-regional-bank-branch-closures
Older Australians embrace digital banking | ANZ
Cited text: ... 81 per cent of people over 65 used internet banking in the past 12 months, compared to only 26 per cent who use a mobile banking app.
Excerpt: 81 per cent of people over 65 used internet banking in the past 12 months
https://www.anz.com.au/newsroom/media/2022/09/older-australians-embrace-digital-banking/
Digital access still out of reach for the elderly | CHOICE
Cited text: 80 per cent of people 65 and older find it difficult to keep up with tech changes.
Excerpt: 80 per cent of people 65 and older find it difficult to keep up with tech changes
https://www.choice.com.au/electroni...ernet/articles/digital-access-for-the-elderly
Digital access still out of reach for the elderly | CHOICE
Cited text: Half of low-income households have difficulty paying for home internet.
Excerpt: Half of low-income households have difficulty paying for home internet, with 20-25 per cent of pensioners living in poverty
https://www.choice.com.au/electroni...ernet/articles/digital-access-for-the-elderly
Digital access still out of reach for the elderly | CHOICE
Cited text: · 'We know that somewhere between 20 per cent and 25 per cent of pensioners are living in poverty,' Henschke says. 'The pension is their sole source of income.
Excerpt: Half of low-income households have difficulty paying for home internet, with 20-25 per cent of pensioners living in poverty
https://www.choice.com.au/electroni...ernet/articles/digital-access-for-the-elderly
Older Australians embrace digital banking | ANZ
Cited text: It also showed people with age-related impairments had more challenges especially with tasks involving voice communication or when using screens where...
Excerpt: People with age-related impairments face challenges with voice communication and small font sizes on screens
https://www.anz.com.au/newsroom/media/2022/09/older-australians-embrace-digital-banking/
Barriers to Age Agnostic Digital Banking | Infosys BPM
Cited text: Frequent security checks and automatic session logouts aggravate the inconvenience, leading to blocked access in many cases. Stiff fingers or poor eye...
Excerpt: Frequent security checks and automatic logouts create frustration, especially for those with stiff fingers or poor eyesight
https://www.infosysbpm.com/blogs/financial-services/is-your-digital-banking-age-agnostic.html
Older Australians embrace digital banking | ANZ
Cited text: When it came to digital banking channel preference, the data showed that as age increased there was a stronger preference towards using Internet banki...
Excerpt: Only 26 per cent of people over 65 years use mobile banking apps, compared to 81 per cent using internet banking
https://www.anz.com.au/newsroom/media/2022/09/older-australians-embrace-digital-banking/
Older Australians begin to bridge the digital divide
Cited text: An estimated 575,000 people are blind or vision impaired and currently live in Australia, with more than 70 per cent over the age of 65 with 66,000 of...
Excerpt: An estimated 575,000 people are blind or vision impaired in Australia, with more than 70 per cent over the age of 65, while seventy-three percent of Australians aged over 70 have mild to severe hearing loss
https://news.anz.com/posts/2022/09/anz-unisa-research-report-older-australians-digital-banking
Banks banned from closing regional branches until 2027
Cited text: Commonwealth Bank, Westpac and NAB have all reached an agreement to provide banking services at post offices, also called Bank@Post, with ANZ also agr...
Excerpt: Commonwealth Bank, Westpac and NAB have all reached agreements to provide banking services at post offices through Bank@Post, with ANZ also agreeing to join the scheme
https://www.smartcompany.com.au/finance/banks-banned-closing-regional-branches-until-2027/
Big banks extend branch closure moratorium to 2027 | FST Media
Cited text: Customers of CBA, Westpac and NAB can already access Bank@Post services, which offers a limited range of banking services, including cash and cheque d...
Excerpt: Bank@Post offers a limited range of banking services, including cash and cheque deposits, money withdrawals, and account balance checks within Australia Post branches
https://fst.net.au/financial-services-news/big-banks-extend-branch-closure-moratorium-to-2027/
Fears of a cashless society amid digital banking boom—National Seniors Australia
Cited text: · Ms Bligh noted that 98 per cent of branch closures “have occurred within three kilometres of another branch of the same bank or one of 3,540 face-to-face Ba...
Excerpt: 98 per cent of branch closures have occurred within three kilometres of another branch of the same bank or one of 3,540 face-to-face Bank@Post locations across the country
https://nationalseniors.com.au/news/finance/fears-of-a-cashless-society-amid-digital-banking-boom
Fears of a cashless society amid digital banking boom—National Seniors Australia
Cited text: Ms Bligh said 98.9 per cent of all bank transactions are digital and customers “report the highest satisfaction using this channel”.
Excerpt: 98.9 per cent of all bank transactions are digital and customers 'report the highest satisfaction using this channel'
https://nationalseniors.com.au/news/finance/fears-of-a-cashless-society-amid-digital-banking-boom
Access to Cash in Australia | Bulletin—January 2025 | RBA
Cited text: [3] The report on the inquiry into bank closures in regional Australia found that people residing in regional and remote areas are more likely to be s...
Excerpt: people residing in regional and remote areas are more likely to be socio-economically disadvantaged, have lower levels of digital inclusion, and are more prone to natural disasters that can limit the ability to use digital payments—all…
https://www.rba.gov.au/publications/bulletin/2025/jan/access-to-cash-in-australia.html
A win for the people as Australia's banks finally go too far I Australian Rural & Regional News
Cited text: In their own words, the senators found the following: ... “Bank branch closures are devasting to many regional and remote communities (and) it is clea...
Excerpt: 'Bank branch closures are devastating to many regional and remote communities. It is clear that the current model of banking industry self-regulation has failed to shelter regional Australia from the damaging impacts.
https://arr.news/2024/07/02/a-win-for-the-people-as-australias-banks-finally-go-too-far/
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