Big Four banks’ controversial move leaves thousands of Aussies feeling abandoned

The digital revolution is sweeping across all sectors, and banking is no exception.

However, a trend in the rapid transition towards a digital banking society has left many Australians feeling deserted and vulnerable.

Big Four banks Commonwealth Bank (including its subsidiary Bankwest) and National Australia Bank (NAB) have been accused of abandoning their customers following continued branch closures across the country.



In early February, NAB announced plans to close 13 branches for 2024, while Bankwest will shut down two more.

Branch closures have also occurred with the remaining Big Four banks.

Twenty-three Westpac branches across Australia closed in 2023.

Meanwhile, Australia and New Zealand Banking Group (ANZ) has been cited as ‘far from the worst offender’ in closures compared to the others. Still, it has closed 403 branches over the past decade. Of this figure, 17 were closed in 2023.

These closures are the latest in a series of branch shutdowns that have seen more than 2,100 branches across all major banking institutions close their doors over the past six years.


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Thousands of bank branches have closed over the past six years. Image source: pressfoto on Freepik.


Millions of Australians, particularly seniors, people living with disabilities, and those in regional and remote areas, rely heavily on these branches for their financial needs.

For these groups, physical branches are not just a convenience but a necessity.



Julia Angrisano, the National Secretary of the Finance Sector Union, has voiced concern over the closures, stating that they signal a 'desertion' of an essential service and have a 'devastating impact' on communities.

'The banks have been using branch closures to prop up their massive profits for years, and it's time they were forced to maintain customer service to local communities in regional and metropolitan areas,' she said.

The closures are not just affecting those in regional areas.

Thousands of city dwellers are also being forced to adapt to a shrinking number of branch locations.



For instance, the closure of the Commonwealth Bank branch in Rundle Mall, Adelaide's busiest shopping precinct, will affect the many customers and businesses that rely on its services.

'There are 800,000 people passing through Rundle Mall every week, and many will be CBA customers; however, the bank has decided to shut the branch with the loss of 13 jobs,' Ms Angrisano added.

'This is the busiest shopping precinct in Adelaide, but CBA customers and businesses are being told to find a branch elsewhere in the city if they need to visit a bank branch.'

'Coogee is in the middle of Sydney's heavily populated eastern suburbs, with many older customers, but that branch is going as well.'



Commonwealth Bank, BankWest, NAB, and other financial institutions have redirected customers towards the 3,500 Australia Post outlets, where they can use the Bank@Post service to deposit and withdraw cash and make balance inquiries.

'The banks claim that customers can move to [do] banking at the post office, but there is only a limited service available at post offices, so that is not a realistic option and not all banks have a contract with Australia Post,' Ms Angrisano added.

The services a branch offers extend beyond just cash transactions—they include identity checks, loan applications, and a range of other important face-to-face service interactions that are vital to effectively serve customers.

'All these interactions have one thing in common,' she said.

'They must be performed by a suitably qualified bank worker. They can't be done in a post office.'

The number of branches in major cities and metropolitan areas has reportedly decreased by 39 per cent in the last six years, according to Adam Trevorrow from the Australian Prudential Regulation Authority.

This trend is likely to continue as banks increasingly move their operations online.
Key Takeaways

  • Australia's largest banks, such as Commonwealth Bank (and subsidiary Bankwest) and National Australia Bank, are accused of deserting Australians by closing more branches.
  • Branch closures have also affected other large banks, with Westpac closing 23 branches and ANZ closing 17 branches in 2023.
  • Numerous branch closures (over 2,100 branches closed) have occurred over the past six years, which have many customers, especially seniors and those with disabilities.
  • Finance Sector Union National Secretary Julia Angrisano criticised the banks for the closures, stating they have a 'devastating impact' on communities and argued that banks prioritised profits over maintaining customer service.
  • Although banks are directing customers to Australia Post outlets for basic transactions, she argued that post offices cannot replace the full range of services offered by bank branches, which require qualified bank workers.
What are your thoughts on this issue? Have you been affected by the closure of your local bank branch? Share your thoughts and experiences in the comments below.

Editor's Note: This story labelled BankWest as a Big Four bank. It has since been corrected to include Westpac. We regret the oversight.
 
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It will affect the smaller banks I am sure. The big 4 are only it for their profits and the big salaries for the CEO's. I would be lost if I couldn't go into my local branch. You get the personal touch and can get things sorted more quickly. One branch of my bank, closed in a major shopping centre and it is a real nuisance when you go shopping and want to pop into the bank for say, some small amounts. I needed to go to the Library for some money for photocopying by the JP's who came into the library - no bank anywhere near and I couldn't find an automatic teller anywhere (much as I dislike them). I ended up in Woolworths and the girl at the main counter kindly gave me the small amount that I needed from her float, otherwise i would have been stuffed (excuse the word). Profit before People.:mad:
 
Bank Boards only care about the bottom line.

Customers of long standing define Customer service differently from Banks.

They (the Customers) understand it to mean PERSONAL Customer Service.

Banks pretend that Bank staff on the phone/on line and chat bots offer good Customer Service.

Not so.

Nothing adequately replaces the human offering person to person service.

Numerous studies establish that human interaction at times of need/trouble cannot be surpassed by technology.

Their (the Banks) advertising about Customer service and the way they make it available, is just fluff, lulling customers into a false sense of security while they (the Banks) keep on with branch closures.

It's sad but Banks will continue to conduct their business and patiently wait till we seniors are no longer leaving them to Customer serve younger gens who have been indoctrinated over the last 40 years.
 
Bank Boards only care about the bottom line.

Customers of long standing define Customer service differently from Banks.

They (the Customers) understand it to mean PERSONAL Customer Service.

Banks pretend that Bank staff on the phone/on line and chat bots offer good Customer Service.

Not so.

Nothing adequately replaces the human offering person to person service.

Numerous studies establish that human interaction at times of need/trouble cannot be surpassed by technology.

Their (the Banks) advertising about Customer service and the way they make it available, is just fluff, lulling customers into a false sense of security while they (the Banks) keep on with branch closures.

It's sad but Banks will continue to conduct their business and patiently wait till we seniors are no longer leaving them to Customer serve younger gens who have been indoctrinated over the last 40 years.

Must be at a different bank to me
Bank Managers are kind and considerate.

Do what you ask of them.

Shareholders have done extremely well from their investments

My comment was to do with an incorrect statement

Bank West is not one of the Big 4


Back in the 1980s or now

The post is unprofessional
 
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I have a friend in Scotland he said they have money or card. He said u should keep money. No banks no they are going to make more. What will happen to garage sales markets school fetes. Donation tins they will have to go. Money for grandchildren. People who don't have a computer. I like to go to bank and ask something. A country with out money is no good. The people who just want to use card let them. And the rest use money. I been few places now people could not use card. I had money. What happen ask people what they want. People get bashed to take ur card or phone as well. Friend card was taken and they used it before he could stop it he had no money for petrol. Or food his friend helped him out.
 
I think it is nearing time for all the bank customers to rethink their loyalty to the bank when a closure occurs where they deal. Change banks where-ever possible. I am 77 years of age and I still use cash all the time and if I go anywhere that rejects cash, I do not patronise that business. There is still freedom of choice which I believe must be maintained. Unfortunately banks are not the only business to try and rule our lives and we must unite to keep our freedom of choice alive.
 
Bankwest is not in the Big 4
Back in the early1980s Keating announced the Big 4.
Definitely not Bank West was not on that list
 
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This is something where a full vote should be made as it involves everyone. I do use a card most of the time but just sometimes we need cash for tips (I don’t like putting it on a card). You have people who will reduce the cost of services for cash. When there are problems with the computers we need cash. If you frequent garage sales you need cash. We also get charged for using our cards. We need to vote on this subject.
 
My comment is that Bank West is not in the Big 4.
Nothing is wrong with that.
In the 1980 the Big 4 were announced by Keating. They were called the 4 Pillars. That is still the case.
They are WBC NAB CBA and ANZ.

Not Bank West That is 100% inaccurate
 
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Last time I tried to do banking at our post office they said ANZ doesn’t allow you to use them It may have changed since then We have an ANZ branch 35 mins away but too far That is at least and hour and a half just in travel I do use my phone for some things but even the supermarket are reluctant to give out much cash But sooner the oldies like us leave the planet the young ones will be okay 🤷🏻‍♀️
 
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As an ANZ customer I have noted that my branch is directing customers to use the ATM machines. It may well be that we will lose this branch also.
 
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More and more I see everyone being charged to access their own money.( i.e. hidden fee's) Sadly even some of our more older generations are embracing electronic banking. Somehow we must try to keep cash as a real hands on thing. I have been caught up in power outages as have a lot of others, and non of this technology is worth 2 bob when there's no power. At least cash doesn't need to be plugged into anything.
Just sayin. Geoff
 
Last time I tried to do banking at our post office they said ANZ doesn’t allow you to use them It may have changed since then We have an ANZ branch 35 mins away but too far That is at least and hour and a half just in travel I do use my phone for some things but even the supermarket are reluctant to give out much cash But sooner the oldies like us leave the planet the young ones will be okay 🤷🏻‍♀️
Just have an account with a another bank who works with Post offices
Not sure how long Post offices will last to do this.
A major failure the 1960sb
If you read this correctly it states it is a subsidiary of CBA
But it was not there in the 1980s and is still not the Big 4 only a small subsidiary
The rules are made by the CBA.
Without CBA Bank West was very vulnerable when it was bought by CBA.
 
Bankwest was originally Rural and Industries Bank of WA. Not sure when they changed the name to Bankwest and then CBA took over and became a subsidiary of CBA. Bankwest was established quite a long time before this here in WA.
 
Bankwest was originally Rural and Industries Bank of WA. Not sure when they changed the name to Bankwest and then CBA took over and became a subsidiary of CBA. Bankwest was established quite a long time before this here in WA.
Still does not make them one of the Big 4 Pillars as announced by Keating in the 1980s

My only reason for commenting is it was stated it was one of the Big 4
It is only one of many subsidiaries and the CBA is the principal company.

Collateral security for subsidiaries is imperative when a Bank lends to a subsidiary.
Security documents are always linked not only to the subsidiaries but also to the Principal Company.
The Principal company can be left holding the can.

A Bank lending to a subsidiary must ensure the documents cover all assets of the principal company otherwise the Bank can be left with the debt without having control over the security assets.
Otherwise it been deemed as being unsecured
 
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