When the bank shuts its doors: How one Aussie town's fight reflects a crisis facing thousands of older Australians

At 94, Esme Rash had never imagined she'd need to plan a two-hour round trip just to deposit a cheque.

The Yarram resident in Victoria's South Gippsland now faces this reality after her local Bendigo Bank branch closed its doors.

'You need a bank,' she told the ABC simply—a sentiment echoing across rural Australia as banking services retreat from the communities that need them most.

Esme's story isn't unique. In fact, it's becoming distressingly common as more than 200 bank branches across Australia closed last year, with regional areas feeling the hardest impact, while 6,000 ATMs have vanished over the last five years.

Now, the spotlight has turned to Queenstown, Tasmania, where mayor Shane Pitt is fighting a battle that thousands of rural communities know all too well.

The last bank standing closes its doors

When Bendigo Bank announced the closure of its Queenstown branch on Friday, it wasn't just shutting another regional office—it was severing the final banking lifeline for the 1,808 residents of this West Coast mining town. Bendigo Bank has announced the closure of 10 regional branches, but for Queenstown, this closure carries particular weight.

The numbers tell a powerful story of community resistance. In a region with just 4,000 residents, over 3,000 people signed a petition opposing the closure—a participation rate that would make any politician envious. Yet their collective voice couldn't override the bank's decision.

Mayor Pitt's frustration is palpable and understandable. The branch wasn't failing—it simply wasn't profitable enough for corporate expectations. 'We've looked into the Bendigo Bank and while the bank at Queenstown wasn't making big profits, it wasn't in the red either,' he explained to Daily Mail Australia.

A crisis decades in the making

Queenstown's loss is part of a much larger story unfolding across rural Australia. Between June 2017 and June 2021, there were 575 bank-branch closures outside metropolitan areas and a 34 per cent drop in the number of ATMs. The pace hasn't slowed—if anything, it's accelerated.

The human cost extends far beyond inconvenience. Many residents, especially the elderly and those with limited mobility, find it challenging to access banking services without a local branch. In Queenstown, this means elderly residents who don't drive must now take an entire day using the bus service to Burnie just to do their banking.

But it's not just about the practical challenges. Banks often serve as community hubs, and their closure can erode social connections and local identity. When institutions that have served communities for generations suddenly disappear, it sends a message about the value placed on rural life.

The digital divide hits hardest

The banking industry's response often centres on digital alternatives, but this misses a crucial reality about older Australians. While 81 per cent of people over 65 'preferred' Internet banking, according to ANZ bank, many question these statistics. How many seniors have reluctantly turned to digital banking because of the closure of many local banks?

The move towards a 'cashless society' is disproportionately impacting seniors who struggle with technology and online banking, highlighting concerns about digital exclusion. For many older Australians, the shift isn't a choice—it's a necessity forced upon them by circumstances.

The concerns go beyond mere preference. The elderly may be less digitally adroit than younger people, they may need to be protected from online scams, they may rely more on cash and they may need face-to-face advice. When scams targeting seniors are at record highs, forcing vulnerable people into digital-only banking feels particularly cruel.

Fighting back: Government and community responses

The crisis hasn't gone unnoticed by policymakers. In the 2025-26 Budget Submission, National Seniors told the government that face-to-face banking is an essential part of the banking system, noting that the shift to online banking is diminishing the lives of those who are vulnerable or need face-to-face support.

Parliamentary inquiries have produced recommendations, including establishing a regional community banking branch program to help underwrite community bank branches. But implementation remains slow while closures continue at pace.

Post offices are being positioned to play an important role in maintaining vital banking services, with recommendations that Australia Post leverage its existing branch network to provide face-to-face banking services and access to cash in regional, rural, and remote areas.

What's available now?

For Queenstown residents and others facing similar situations, several alternatives exist, though none fully replace a local branch:

Bank@Post Services: Bendigo Bank promised fee-free transactions at the Australia Post office next to the closed branch for at least 12 months. These services handle basic transactions but can't provide complex banking advice or services.

Banking Hubs: The government is rolling out 350 banking hubs, over 100 of which are already up and running, though this isn't ambitious enough for the scale of need.

Mobile Banking Services: Some banks offer mobile units that visit rural communities on scheduled days, though frequency is often limited.

Telephone Banking: While not ideal for complex transactions, phone banking can handle many routine tasks without requiring internet access.

The broader economic impact

The closure of banking services creates ripple effects throughout rural communities. Local businesses may struggle with cash management and accessing loans, potentially leading to economic decline in rural areas, while branch closures result in job losses, not only in banking but also in related sectors.

When businesses can't easily bank their takings or access credit, it affects their viability. When residents must travel hours for banking services, they're less likely to support local businesses during those trips, creating a vicious cycle of economic decline.

The tourism industry, particularly crucial for towns like Queenstown with its historic mining heritage, also suffers when basic services disappear. Visitors expect and need access to banking services, and the absence of these amenities can affect a town's appeal and economic prospects.

Learning from international experience

Australia isn't alone in grappling with rural banking closures. In the UK, bank branches have declined from 21,643 in 1986 to 6,870 in 2024, creating similar challenges for rural communities.

Examples from other countries include India's banking correspondents, Canada's credit union network, and the UK's community banking hubs—all potential models that could be adapted for Australian conditions.

The UK's approach of creating community hubs that include not just banking but social interaction, with coffee and cake where people could meet to discuss digital exclusion and learn about protecting themselves from scams offers an intriguing model for building community resilience.

The path forward

The closure of Queenstown's bank branch represents more than just corporate cost-cutting—it's a symptom of a fundamental shift in how financial services view rural Australia. Some customers feel that banks are prioritizing profits over community needs, leading to growing pressure on the government to step in and ensure rural communities have access to essential banking services.

Mayor Pitt's comment that residents feel 'abandoned' by Bendigo Bank resonates because it captures the emotional reality of these closures. When institutions that have served communities for generations suddenly disappear, it's not just about banking—it's about being valued and respected.

The challenge now is ensuring that alternative solutions actually meet the needs of older Australians who prefer face-to-face service, handle cash transactions, and need assistance with complex banking matters. Digital solutions alone won't suffice for everyone, and forcing vulnerable people into systems they're uncomfortable with isn't just poor customer service—it's potentially dangerous.[/p>

Your voice matters

The 3,000 signatures on Queenstown's petition couldn't save their branch, but collective action is still making a difference. The Big Four banks' commitment to maintain regional branches until 2027 came from exactly this kind of community pressure and political attention.

If your community is facing similar challenges, or if you've found creative solutions to banking access problems, your experiences matter. Rural Australia's banking future will be shaped by the stories communities tell and the solutions they demand.

Have you been affected by bank closures in your area? What alternatives have worked for you, and what challenges remain? Share your experiences in the comments below—your story could help other communities facing similar situations find their way forward.