A recent announcement by the Commonwealth Bank has sparked a wave of criticism and concern, particularly from a group of financial industry workers.

The decision, which is set to affect 350 staff members, has been labelled as 'disgraceful' and an abandonment of the bank's customer base, especially those in regional and remote areas.

The bank's justification for the mass closure of all 60 Bankwest branches in Western Australia is the shift towards digital banking, as Bankwest Personal Banking Manager Scott Spittles cited that 97 per cent of transactions are now conducted online.

'As part of Bankwest's transition to a digital bank, we will no longer operate a physical branch footprint,' Spittles explained.

Bankwest is set to close all of its 60 branches in Western Australia. Image source: Shutterstock.

However, Finance Sector Union (FSU) President Wendy Streets and other union representatives argued that the move is a betrayal of the bank's customers.

'This is a bank that makes in excess of $10 billion profit annually,' she pointed out.

'They can afford to keep banking in regional Australia.'

Streets highlighted the challenges faced by customers outside of urban centres ahead of the widespread shutdown.

'Once you get out of cities, connectivity is a real issue…even if they've got the equipment and they know how to do (online banking), which in lots of cases they don't, the actual connectivity is an issue.'

'So, you know, we've heard stories through the banking inquiry into the closure of regional and remote branches of people having to do their banking at midnight and 1 am.'

The FSU's National Assistant Secretary, Jason Hall, emphasised the impact on these groups, stating, 'This is an outrageous decision by Bankwest, which has completely abandoned its customer base in order to cut costs and become a digital bank.'

'A range of Bankwest customers will be badly affected including the most vulnerable in our community.'

'Worst affected will be the elderly, First Nations customers, people whose first language is not English, and others who are not computer literate.'

'Maintaining a branch network costs money. But surely keeping faith with a loyal customer base is an important principle when those same customers and the banking fees they pay, have been at the core of Bankwest's profitability for many years.'

Bank bosses also reiterated that the closures could be the last straw for some of its clientele.

'I hope to keep every single one of our customers,' Spittles said.

'I absolutely respect, though, that some may see a physical branch experience as really critical to them.'

The closure will happen in phases, with the busiest branches the first to be shut down.

The exact schedule of the closures will be finalised in the coming weeks.

This news comes after the Commonwealth Bank announced the closure of three more branches across the country.

Similarly, the bank explained that this decision is a response to a progressive decline in customer demand at the affected branches.

The branches in Coogee, New South Wales, Coolangatta, Queensland, and Adelaide’s Rundle Mall in South Australia closed their doors permanently last 1 March.

You can read more about this here.

Key Takeaways

• Bankwest, Western Australia's oldest bank, is set on closing all 60 of its branches by the end of 2024 as it transitions to a digital-only operation.
• The closure will impact 350 staff members.
• The Finance Sector Union criticised the move for abandoning Bankwest's customer base.
• Concerns about the impact on customers, particularly older Australians and those in regional areas have been raised.

Are you a Bankwest customer affected by these closures? Let us know your thoughts about this latest news below.

 

[Ziggy]

Banks become leeches of society. Not contributing anything constructive, just making money for shareholders at all costs. Australian banks will contribute to employment in India but not locally. They have become self service supermarkets without any product but full control of their client. If they don't like you, they will delete your account or block you on FB and you will be done.

 

[Mran]

not

 

[Tindle]

So let me get this straight. The big 4 banks give really poor service (such as only one teller on duty most of the time) then they close the banks because not enough people are using them (due to the BAD service). Am I missing something here ??? It is about time the government did something about this, they deregulated the banks after all.
There is an alternative, it is called the Bendigo Bank, great service, at our local branch, in busy times there are 4 (yes 4) tellers on

 

[Barbara V]

Where do they go? To the post Office, a facility that has been available for decades. They are the people who have very simple banking needs, all they want to do is withdraw cash, the PO does this free of charge.

No they do charge

 

[Rob44]

Thats awful, that means more tellers will be out of work, and on the dole, so unfair to the workers and customers.

Ah well, I did tell that young female CBA bank-teller that the CBA would sack her because of the plastic bank-card she enable me to acquire instead of my using my CBA pass-book. 40 years later in 2024..........

Thats awful, that means more tellers will be out of work, and on the dole, so unfair to the workers and customers.

 

[Rob44]

So let me get this straight. The big 4 banks give really poor service (such as only one teller on duty most of the time) then they close the banks because not enough people are using them (due to the BAD service). Am I missing something here ??? It is about time the government did something about this, they deregulated the banks after all.
There is an alternative, it is called the Bendigo Bank, great service, at our local branch, in busy times there are 4 (yes 4) tellers on

At the moment............

 

[Johnnie boy]

I didn't know Bankwest and commonwealth bank were one you learn something new every day.

I'm thinking this is just the beginning of the end for eventually all bank branches

Neither did i

 

[Poppins]

Unbelievable! Banking is a SERVICE industry! Id be closing my account and going elsewhere.

Me to I will find another bank.

 

[Lizzylou]

Unbelievable! Banking is a SERVICE industry! Id be closing my account and going elsewhere.

I agree I would if possible take my business elsewhere.

 

[Greg350]

You are limited on the amount you can withdraw from the PO. If the bank closes down in a relatively medium sized town, can you imagine all that banks' customers withdrawing from the PO. And again, the business operators need to deposit cash. If they all deposit cash into the PO, it presents a problem of the PO getting the cash to their bank. Do they further rely on Armaguard or equivalent? What about medium sized remote towns like Alice Springs, Kununurra, Katherine etc.
Unfortunately, not all PO's can operate like banks.

My comment was in response to a comment about their mother accessing her account, simple withdrawal transactions that can take place at the PO. Also I can imagine all the customers withdrawing from the PO, one branch with small transaction numbers can cross over to the PO. Talking about small towns here not large ones.

 

[IAN3005]

It would make sense for the CBA to open a couple of Bank West counters in some of the CBA branches. It would save them money and still provide the customer service.
Maybe that is going to happen and this article just didn't say it.
Westpac did that with St George in my home town and it seems to be working well.

They couldn't give a stu** about what the customer wants or needs....the only thing they worry about is the PE ratio, profit and return on shareholders' investment..... nothing else.... all these glossy pamphlets that circulate are designed for the trash bin.

 

[anouch]

what about those who don't have a computer to do internet banking,,,older folk find it very scary and confusing,,me included,,,,I am always being asked if I do it,,well no I don't and don't intent to,,I don't feel comfortable with it

 

[Luckyus]

"BASTARDS" only interested in the bottom line

 

[Kentsue]

It’s about time we have a government/taxpayer owned bank that looks after taxpayers and be able to get cheap home loans
Combank when it started was called commonwealth bank it was a savings bank for the common people in other words not business and gave people good customer service and housing loans and was separate from business they have lost that focus to make big profits
When they bought in self service tellers machines they said that there would be no fees and charges this is why people don’t trust banks they think everyone has short memories

 

[purplepanda110]

Also with the post office not all banks have a relationship with the post office. Anz is one of those banks. Being regional, we have problems with condectivity so it can be hard to do online banking.

 

[Morgs01keller]

You heading says that ALL banks have been closed, well that is incorrect. They will close them in October 2024.

 

[David567]

I wonder what the banks profits will be this year. Last year was a record high. I expect this year will be billions ahead of last year. Banks are so concerned about bank robbers when they are the ones doing the robbing.

 

[Rellybee]

Ggrrrr....these banks,and really it applies to all of them...Who do they think keeps them in business...their customers.We, as a customer are entitled to physical customer service.....Talk about profiteering from customers !!

 

[Annemarie]

Not everyone can do banking on line. Our senior generation who still need help with banking and need personal help when they go into a branch. Where do they go? When the communication system brakes down we are all stuffed anyway.

This is all about profit and shareholder dividends. The powers that be could care less about their customers. Commonwealth Bank has been closing branches hand over fist in rural areas for years. This is just the next step. I hope BankWest customers take their business elsewhere. I also feel sorry for the staff of these branches. It's not as easy in rural areas to find work (in the same field) as it is in the city.

 

[Chicky]

They are really forcing people to go paperless, the more branches they close people will have to pay extra to get money out of the shops or pay by card.