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