Disturbing rise in Australian bank branch closures revealed: ‘They’re bullies’
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The Australian banking landscape has been undergoing a shift in recent years, with a disturbing number of bank branches closing their doors, particularly in rural and regional areas.
This trend has left many Australians grappling with the challenges of a rapidly evolving cashless society and has raised concerns about the potential for increased financial scams.
According to the Australian Prudential Regulation Authority (APRA), nearly 800 bank branches have closed in regional and rural Australia since June 2017.
This trend is not just a statistic; it's a reality that is impacting the lives of everyday Australians, particularly those in rural communities who rely on these branches for their financial needs.
In a previous story, former ANZ employees have alleged that the bank is systematically pushing customers towards ATMs or iPads for transactions, thereby reducing in-branch transactions.
It has been reported in a Senate inquiry that the banks’ absence in rural communities can leave vulnerable customers at risk of financial scams.
When a bank branch closes, customers are often directed to their local post office for limited cash services through Bank@Post. However, this is not a perfect solution.
Australia Post stated that there were around 1150 rural communities with post offices but no banks.
The LPO group, representing post office licensees, advocated establishing a government-backed postal bank using Australia Post's wide regional network.
Meanwhile, Co-Chair Scott Etherington shared that three of four major banks paid Australia Post for transactions, but post offices needed to handle all banking inquiries with no charge.
‘How much longer should our members continue subsidising the banks?' Etherington told the inquiry in Canberra on Friday.
‘These bankers are not clever businessmen. They're bullies.’
The closure of bank branches is not just a financial issue; it's a human one.
Banks justified these closures by pointing to the rapid uptake of digital banking and the decline in cash transactions.
Etherington stated that elderly rural customers, in particular, relied on face-to-face banking at post offices, often out of fear of being caught up in scams or losing money through digital transactions.
'They can't afford for $5 or $10 or $1000, heaven forbid, to go astray because they hit the wrong button on their phone or hit the wrong thing on their web browser,’ he added.
When Westpac’s Cloncurry branch informed the Council that it would be closing on May 19, nearly 4,000 people sparked outrage, saying that the closure was an ‘act of complete disrespect’, saying: ‘Our greatest fear is that this decision will give other vital services the precedent to withdraw more services from Cloncurry and regional Queensland.’ Read more about the story here.
Despite the trend towards digital banking, cash remains an important part of the Australian economy.
Australia Post Chief Executive Paul Graham has stated that while Bank@Post was likely to decline as customers move online, cash was still important for regional communities and would not likely disappear soon.
The national postal service paid $90,000 last year to provide cash into remote towns like Coober Pedy in South Australia and Kalgoorlie in Western Australia, where the last banks have shut down.
‘The closures they have made, they have done so because they don't see a future in having branch outlets; that's their view,' Graham said.
'We obviously do see a future in it.’
Reserve Bank’s Note Issue Department Deputy Head Merylin Coombs noted that a record $100 billion in cash was circulated after the height of the COVID-19 pandemic.
‘People, at times of uncertainty, they do want cash as protecting against uncertainty,’ she said.
APRA data revealed the number of banks in regional and rural areas was reduced to 34 per cent in the past six years, whereas 39 per cent in cities.
Regarding ATMs provided by banks, their number dropped by 50 per cent in the country and 62 per cent in metropolitan areas.
The Senate inquiry into the impact of bank closures is due to hand down its final report next May.
Have you been affected by this trend? Which banks have already closed in your area? Let us know in the comments below.
This trend has left many Australians grappling with the challenges of a rapidly evolving cashless society and has raised concerns about the potential for increased financial scams.
According to the Australian Prudential Regulation Authority (APRA), nearly 800 bank branches have closed in regional and rural Australia since June 2017.
This trend is not just a statistic; it's a reality that is impacting the lives of everyday Australians, particularly those in rural communities who rely on these branches for their financial needs.
In a previous story, former ANZ employees have alleged that the bank is systematically pushing customers towards ATMs or iPads for transactions, thereby reducing in-branch transactions.
Several banks have been closing their doors to regional Australia. Credit: Unsplash
It has been reported in a Senate inquiry that the banks’ absence in rural communities can leave vulnerable customers at risk of financial scams.
When a bank branch closes, customers are often directed to their local post office for limited cash services through Bank@Post. However, this is not a perfect solution.
Australia Post stated that there were around 1150 rural communities with post offices but no banks.
The LPO group, representing post office licensees, advocated establishing a government-backed postal bank using Australia Post's wide regional network.
Meanwhile, Co-Chair Scott Etherington shared that three of four major banks paid Australia Post for transactions, but post offices needed to handle all banking inquiries with no charge.
‘How much longer should our members continue subsidising the banks?' Etherington told the inquiry in Canberra on Friday.
‘These bankers are not clever businessmen. They're bullies.’
The closure of bank branches is not just a financial issue; it's a human one.
Banks justified these closures by pointing to the rapid uptake of digital banking and the decline in cash transactions.
Etherington stated that elderly rural customers, in particular, relied on face-to-face banking at post offices, often out of fear of being caught up in scams or losing money through digital transactions.
'They can't afford for $5 or $10 or $1000, heaven forbid, to go astray because they hit the wrong button on their phone or hit the wrong thing on their web browser,’ he added.
When Westpac’s Cloncurry branch informed the Council that it would be closing on May 19, nearly 4,000 people sparked outrage, saying that the closure was an ‘act of complete disrespect’, saying: ‘Our greatest fear is that this decision will give other vital services the precedent to withdraw more services from Cloncurry and regional Queensland.’ Read more about the story here.
Despite the trend towards digital banking, cash remains an important part of the Australian economy.
Australia Post Chief Executive Paul Graham has stated that while Bank@Post was likely to decline as customers move online, cash was still important for regional communities and would not likely disappear soon.
The national postal service paid $90,000 last year to provide cash into remote towns like Coober Pedy in South Australia and Kalgoorlie in Western Australia, where the last banks have shut down.
‘The closures they have made, they have done so because they don't see a future in having branch outlets; that's their view,' Graham said.
'We obviously do see a future in it.’
Reserve Bank’s Note Issue Department Deputy Head Merylin Coombs noted that a record $100 billion in cash was circulated after the height of the COVID-19 pandemic.
‘People, at times of uncertainty, they do want cash as protecting against uncertainty,’ she said.
APRA data revealed the number of banks in regional and rural areas was reduced to 34 per cent in the past six years, whereas 39 per cent in cities.
Regarding ATMs provided by banks, their number dropped by 50 per cent in the country and 62 per cent in metropolitan areas.
The Senate inquiry into the impact of bank closures is due to hand down its final report next May.
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