There was a time when the neighbourhood bank was a focal point of the community. But bank branches are fast disappearing, and it’s leaving plenty of Australians in the lurch when it comes to managing their money.
Since 2017 almost 700 branches have closed. In regional areas, bank closures can have a devastating impact. A parliamentary report found that when consumers are forced to travel for their banking, they often take their shopping dollars with them, leaving local businesses struggling and heralding the onset of population decline as residents move on in search of better-serviced locations.
To date, NAB has been one of the few banks to buck the trend, having pledged in 2019 to keep its 316 regional branches open until at least early this year. But chances are it’s only a matter of time before some of NAB’s country customers see the curtains close on their local branch.
Covid’s digital boost
It’s a sign of the times that branch closures aren’t limited to regional locations. Figures from the banking watchdog APRA show that over the past three years 374 branches have closed across our state capitals. Westpac kicked off 2019 with plans to shed 22 branches from its retail network, mostly in suburban locations. In July 2020, ANZ closed 10 of its Perth branches.
It’s easy to assume branch closures are all about banks putting profits before people. But it’s not that simple. The fact is, technology is leading us away from face-to-face banking.
This story is from the February 2021 edition of Money Magazine Australia.
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This story is from the February 2021 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
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