As more and more people choose to do their banking online, physical bank branches are becoming less common – and in some towns, they are fast becoming a thing of the past.

The trend has left thousands of customers fuming and businesses struggling – and it’s only set to get worse.

In the mining town of Coober Pedy, an estimated 2,000 residents will be left without a local bank branch come February 17 after Westpac decided to close its location.

Residents will still be able to access banking through the local post office, but its limited offerings will impact customers who use its services for more complex transactions.

According to Council CEO Tim Jackson, this change will affect local businesses and the accessibility of the elderly, the Aboriginal population, and those who have difficulty using the internet for financial services.

On February 17, Coober Pedy's Westpac branch will close, leaving many people with little choice but to use the post office for banking. Credit: Coober Pedy Council.

‘I’m told people used to be able to walk into the bank and because they were known to bank staff, they would be able to access their accounts and transact,’ he said.

One opal miner, who spoke with Mr Jackson, shared that buyers need to be able to access $100,000 to $200,000 in cash.

Transactions in the opal industry are typically made in cash, so this new policy will definitely harm the workers who cannot travel far to withdraw or deposit their money.

Meanwhile, Berrigan Shire Council CEO Karina Ewer said that since the last 'physical' bank closed in town, the council has been working hard to help the increasing number of seniors living in Berrigan learn how to utilise online banking services.

‘We have seen people like our library staff are often called on by elderly citizens who can't do online banking to manage their accounts, so they have passwords and identify information given to them to assist our residents,’ she remarked.

‘It makes them incredibly uncomfortable but they don't have anyone else to trust,’

‘To me, this makes vulnerable people more vulnerable and they can't manage banking on their own because they are forced online,’

‘If people are not coming to us, they are going to their family. We all know that not necessarily all family members are trustworthy, so it worries me deeply that people are forced into positions.’

While Mr Jackson did everything he could, including writing letters to Westpac’s state manager in Adelaide and both state and federal politicians, he didn't receive a proper response – leaving him with no other options.

The town protested Westpac’s original decision to close the bank back in 2022, but after correspondence with higher authorities, it was decided that the bank would remain open.

This time, he doesn’t think a change of heart will take place. It seems as though more and more rural towns are being left behind as the world goes digital.

Westpac claims that the number of people visiting the bank in Coober Pedy has declined by 28% per month over the past fiscal year.

Many people are now forced to learn how to use online banking services and access banking services from their post offices. Credit: Pexels/Andrea Piacquadio.

In response to customer preferences, the bank has decided to focus on online and mobile services – leaving many communities in the lurch.

A Westpac spokesperson said: ‘Declining customer use of branches means that in some instances, we may take a difficult decision to leave a branch location.'

‘In Coober Pedy, our team is working to assist customers with the transition, including coordinating with the team at Australia Post to help familiarise customers with Bank@Post services,’

‘Coober Pedy Post Office is located just 50 metres from our current branch and customers will be able to access many of the same cash services there including withdrawals, deposits, and checking account balances.’

Aside from Coober Pedy and Berrigan, Junee, a town in the Riverina region of New South Wales will lose its last bank on March 3, with locals forced to travel to Wagga Wagga, half an hour away, with large amounts of cash in their car – a situation that could put them at risk.

It’s a situation that can put the safety and financial security of many Australians at risk. Sadly, a report from the Australian Prudential Regulation Authority revealed that 575 regional banks closed between mid-2017 and mid-2021, and the Finance Sector Union said that in the past six years alone, more than 1,600 bank branches have closed across the country.

There are currently no solutions in sight for the problem, and it's unclear how vulnerable or elderly residents will be impacted as more and more banks close.

Key Takeaways

• Coober Pedy, a mining town in South Australia, will soon be left without a bank branch.
• Berrigan, a town near the NSW-Victorian border, has already lost its last bank and elderly residents have started relying on library staff and other people to do their online banking.
• Westpac reported a 28 per cent drop in customers using its branch in Coober Pedy each month since the financial year 2020.
• According to the Australian Prudential Regulation Authority, 575 regional banks have closed between mid-2017 and mid-2021, and the big four banks have closed more than 550 branches since January 2020.

We recommend that if you, or someone you know, is residing in an area with a similar situation to Coober Pedy, Berrigan, or Junee, you should familiarise yourself with the basics of internet banking and make sure that you have all of the relevant banking information and protection measures in place.

Also, have a look at what banking services are available at your local post office.

Have your local banking services been affected? Let us know in the comments below.

 

[Bellclare]

A local small businesswoman (Hawkesbury shire NSW) wrote for a local paper that using digital loses money that you pay for an item. EG, you pay $50 digitally, banks et al take a fee off each time it is processed. It goes to the wholesaler, & another fee is taken by their bank. This process repeats until the $50 is gone into paying transfer etc fees. She pleaded that WE ALL USE CASH & NOT DEVALUE OUR ECONOMY.

 

[JedCorella]

A local small businesswoman (Hawkesbury shire NSW) wrote for a local paper that using digital loses money that you pay for an item. EG, you pay $50 digitally, banks et al take a fee off each time it is processed. It goes to the wholesaler, & another fee is taken by their bank. This process repeats until the $50 is gone into paying transfer etc fees. She pleaded that WE ALL USE CASH & NOT DEVALUE OUR ECONOMY.

I've been saying for years that we should start using cash more because all they are doing is pushing us into the digital economy. I know that many here are not keen on my comments about the dystopian future we are heading into but I challenge you all to do a bit of research before you dismiss it. My question is "What are you going to tell your grandkids, who will suffer most, when it's too late"? You had a chance to stop it but did nothing.
"By 2030 you will own NOTHING and you'll be happy". A quote from Klaus Schwab from the World Economic Forum
EVIL FLOURISHED WHEN GOOD MEN DO NOTHING.

 

[margaretritchie48]

Some large shopping centres have all the banks grouped together. They like to be an individual entity all to themselves though lol
Of course they could do this, as banks have mobile lending staff that drive around the place for appointments.

The problem with large shopping centres you cannot find a parking spot. Especially if you have a wheel chair. even with an acrod stickers there are not enough parking spaces.