Major deal keeps bank branches open—what it means for communities
- Replies 36
In a move that has sparked both relief and scepticism, a prominent political group has brokered a landmark deal with major banks to ensure the survival of regional bank branches.
This agreement comes at a critical time when the closure of local branches has been accelerating, leaving many regional Australians without essential financial services.
The deal, which has been strategically announced as the nation gears up for an election, has been seen by some as a bid to secure votes in key regional seats.
However, the implications of this agreement extend far beyond the political arena, offering a lifeline to communities increasingly marginalised by the digital banking revolution.
Under the new terms, a moratorium on regional branch closures will be in place until July 2027, providing a much-needed reprieve for rural areas.
Additionally, funding for Bank@Post operations will be increased, ensuring that Australia Post can continue to provide cash services where banks have retreated.
Including ANZ in the Bank@Post network and Macquarie and HSBC entering negotiations marks a significant service expansion.
This is a testament to Australia Post's vital role in filling the void left by banks in regional and rural areas over the past decade.
Angela Cramp, executive director of the Licensed Post Office Group, has cautiously welcomed the ban.
‘The devil is in the details of this great announcement today. The absolute positive of it is it has validated face-to-face financial services are essential and should be delivered by Australia Post,’ she said.
‘This is out here today because an election is being called shortly, and the government wants to ensure regional and rural Australia feel like they have been included and remembered.’
She pointed out that while the announcement validates the necessity of face-to-face financial services, the real challenge lies in the implementation details.
Banks' retreat from less profitable regional communities has placed a more significant burden on postal services to handle cash transactions.
Cramp suggested that a payment model akin to an 'open-the-door' fee may be necessary to maintain these services, regardless of usage.
Treasurer Jim Chalmers has underscored the government's commitment to ensuring banks fulfil their regional Australia responsibilities.
‘Banks have a responsibility to regional Australia, and we’re making sure they are meeting their responsibilities,’ he said.
‘This is all about making sure that banks stay open in the bush.’
The stark reality is that nearly 40 per cent of regional bank branches have closed since 2017, with a significant reduction in bank-owned ATMs as well.
The big four Australian banks have taken steps to address this issue.
NAB has committed to a new ban on closing regional branches for two and a half years, while CBA and Westpac have extended existing prohibitions.
These measures build upon previous agreements with ANZ and Suncorp to halt regional branch closures following their merger.
The government's stance is clear: face-to-face banking services are indispensable, particularly for regional areas where digital alternatives may not be viable.
The new Bank@Post agreements reflect this belief, with CBA, NAB, and Westpac reaching in-principle agreements and ANZ joining the service.
NAB's group executive for personal banking, Ana Marinkovic, has affirmed the bank's belief in the necessity of in-person banking services.
‘Our recent move to Saturday branch openings demonstrates our conviction that while digital is foundational, a human touch is just as important in the moments that matter for our customers,’ she said.
Paul Graham, CEO and managing director of Australia Post, has expressed his satisfaction with the new arrangements.
‘The new agreements will also help maintain the sustainability of thousands of licensed post offices, many of which are small businesses run by families who play an essential role in servicing their local communities,’ he explained.
The agreements follow a 2024 Senate committee hearing on the impact of bank closures on consumers and businesses.
The committee recommended making the Banking Code of Conduct mandatory, with banks required to engage in meaningful consultation with communities before closing a branch.
A regulator would oversee the enforcement of this code, with the power to approve or defer closure requests and penalise banks for non-compliance.
This deal represents a significant step towards preserving the financial infrastructure of regional Australia.
It acknowledges the importance of accessible banking services and their role in rural communities' economic and social fabric.
As we witness the unfolding of this agreement, it's crucial to monitor its implementation and ensure that the promises made are kept.
The survival of regional bank branches is not just about convenience; it's about maintaining the heartbeat of these communities.
Have you been affected by branch closures? Will this deal make a difference in your community? Join the conversation and let us know in the comments below.
This agreement comes at a critical time when the closure of local branches has been accelerating, leaving many regional Australians without essential financial services.
The deal, which has been strategically announced as the nation gears up for an election, has been seen by some as a bid to secure votes in key regional seats.
However, the implications of this agreement extend far beyond the political arena, offering a lifeline to communities increasingly marginalised by the digital banking revolution.
Under the new terms, a moratorium on regional branch closures will be in place until July 2027, providing a much-needed reprieve for rural areas.
Agreement reached with major banks to halt regional branch closures until July 2027, ensuring continued banking services. Credit: Pixabay
Additionally, funding for Bank@Post operations will be increased, ensuring that Australia Post can continue to provide cash services where banks have retreated.
Including ANZ in the Bank@Post network and Macquarie and HSBC entering negotiations marks a significant service expansion.
This is a testament to Australia Post's vital role in filling the void left by banks in regional and rural areas over the past decade.
Angela Cramp, executive director of the Licensed Post Office Group, has cautiously welcomed the ban.
‘The devil is in the details of this great announcement today. The absolute positive of it is it has validated face-to-face financial services are essential and should be delivered by Australia Post,’ she said.
‘This is out here today because an election is being called shortly, and the government wants to ensure regional and rural Australia feel like they have been included and remembered.’
She pointed out that while the announcement validates the necessity of face-to-face financial services, the real challenge lies in the implementation details.
Banks' retreat from less profitable regional communities has placed a more significant burden on postal services to handle cash transactions.
Cramp suggested that a payment model akin to an 'open-the-door' fee may be necessary to maintain these services, regardless of usage.
Treasurer Jim Chalmers has underscored the government's commitment to ensuring banks fulfil their regional Australia responsibilities.
‘Banks have a responsibility to regional Australia, and we’re making sure they are meeting their responsibilities,’ he said.
‘This is all about making sure that banks stay open in the bush.’
The stark reality is that nearly 40 per cent of regional bank branches have closed since 2017, with a significant reduction in bank-owned ATMs as well.
The big four Australian banks have taken steps to address this issue.
NAB has committed to a new ban on closing regional branches for two and a half years, while CBA and Westpac have extended existing prohibitions.
Bank@Post service expanded as ANZ joined with Macquarie and HSBC, enhancing financial access in bank-free areas. Credit: Depositphotos
These measures build upon previous agreements with ANZ and Suncorp to halt regional branch closures following their merger.
The government's stance is clear: face-to-face banking services are indispensable, particularly for regional areas where digital alternatives may not be viable.
The new Bank@Post agreements reflect this belief, with CBA, NAB, and Westpac reaching in-principle agreements and ANZ joining the service.
NAB's group executive for personal banking, Ana Marinkovic, has affirmed the bank's belief in the necessity of in-person banking services.
‘Our recent move to Saturday branch openings demonstrates our conviction that while digital is foundational, a human touch is just as important in the moments that matter for our customers,’ she said.
Paul Graham, CEO and managing director of Australia Post, has expressed his satisfaction with the new arrangements.
‘The new agreements will also help maintain the sustainability of thousands of licensed post offices, many of which are small businesses run by families who play an essential role in servicing their local communities,’ he explained.
The agreements follow a 2024 Senate committee hearing on the impact of bank closures on consumers and businesses.
The committee recommended making the Banking Code of Conduct mandatory, with banks required to engage in meaningful consultation with communities before closing a branch.
A regulator would oversee the enforcement of this code, with the power to approve or defer closure requests and penalise banks for non-compliance.
This deal represents a significant step towards preserving the financial infrastructure of regional Australia.
It acknowledges the importance of accessible banking services and their role in rural communities' economic and social fabric.
As we witness the unfolding of this agreement, it's crucial to monitor its implementation and ensure that the promises made are kept.
The survival of regional bank branches is not just about convenience; it's about maintaining the heartbeat of these communities.
Last edited:
.png){kind=icon}
