Bank closures hurting small towns

An increasing number of major bank branches are being slammed shut across the South West as the region continues to adjust to the digital world. But the recent trend that has seen outlets close has not been welcomed by the area’s leaders, who believe claims by banks that a customer shift towards online banking is nothing more than a “cheap get out”. The Federal Government’s Regional Banking Taskforce meets for the first time this month to assess the impact of bank branch closures in regional communities. Chaired by Federal Assistant Treasurer Michael Sukkar and NSW Senator Perin Davey, the taskforce will bring together bank representatives and key industry stakeholders to look at the impact of the closures. Forrest MHR Nola Marino said face-to-face banking was still important, especially in regional areas where online may not be an option. “Bank branch closures in the South West have impacts on local communities,” she said. “This taskforce will be looking at how we can keep banking services in our towns and how these services can be delivered.” Mrs Marino’s home patch is among the areas most affected by branch closures. The NAB left Harvey in 2018, and about a year later cut its Waroona branch trading hours. ANZ closed its doors in Australind in 2019 and Commonwealth Bank closed its Harvey branch in May this year, leaving Bendigo Bank and Westpac the only banks in the town. Other centres have also felt the sting, ANZ closing its Dunsborough branch in 2016, Bankwest closing its Augusta branch in June and its Bunbury Centrepoint branch in August. The issue is being faced across regional WA, with towns such as Kondinin, Wyalkatchem, Three Springs and Wagin losing NAB branches this year. For Three Springs losing NAB means the closest bank is now 150km away in Geraldton. Westpac’s York branch — WA’s oldest bank — closed its doors in 2019. Every big bank the South Western Times spoke to said a move to online transactions had sparked the influx of closures. Head of the Australian Banking Association Anna Bligh said more Australians preferred to do their banking online, so when branches were closed it was because customers no longer needed to do their banking face-to-face. “As the world we live in continues to become more digitalised, the way customers want to do their banking is following the same trend,” Ms Bligh said. But the claims are not enough to convince the region’s civic leaders. Harvey Shire president and small business owner Paul Gillett believes banks are not simply a business, but corporate citizens who have an obligation to serve their community. “That’s a cheap get out by the bank, saying its up to the individual,” he said. “It all comes down to the fact that they’re in the business of making money.” He said small businesses, sporting groups and local clubs all take cash payments, and would need access to banks on a “weekly if not daily basis”. The loss of branch banking was further compounded by lack of internet access. “A recent survey by the Shire found 26 per cent of the population of Harvey don’t have internet access,” Mr Gillett said. “You’ve got a certain demographic who don’t have access to internet services here, and Brunswick is a similar story.” Couple this with limited public transport, and Harvey’s only taxi driver retiring, and a trip to the bank in Bunbury becomes near impossible. Cr Gillett thinks banks should come up with flexible solutions such as pop-up branches that could visit a town once a week. “At least maintain a presence in the community,” he said. “They owe people at least that much. We can do online shopping too, but people still go to the shops.” These sentiments are echoed further up South Western Highway. Waroona infamously lost its Bendigo Bank in 2014 when two would-be thieves blew up the branch’s ATM, partially destroying the branch and leaving a trail of bank notes behind them along the highway. In 2019 the town’s last bank, NAB, reduced its trading hours then unexpectedly closed the day before this year’s Waroona Show, leaving locals and visitors scrambling to get cash 25km away in Pinjarra, which only has a Bendigo Bank. The dash for cash highlighted the reality Waroona would face if it lost its last bank. “I’m fearful of losing that service,” Waroona Shire president Mike Walmsley said. “If we lose that, all our banking would be gone.” Mr Walmsley also runs a business in the town and was forced to make a decision when Waroona lost its Bendigo branch. After six months of travelling to Pinjarra a few times a week with the store’s cash takings he decided to switch. “In the end we shifted all our accounts to NAB so we could keep doing our day-to-day banking,” he said. He worries about the retraction of services across the board and how branch losses contribute to job losses in communities. “I’m nervous, given bigger regional areas have lost branch services,” he said. “(The banks) are huge corporate entities, but on a local level the ramifications of job losses is significant.” NAB’s retail executive Krissie Jones said the bank welcomed the opportunity to engage with government and key stakeholders, including customers to review banking services in regional and rural Australia. “Our services and locations are guided by the way our customers are banking,” she said. “While 93 per cent of all transactions now take place digitally, there continues to be an important role for our branch network for more complex customer conversations and for supporting customers with education on evolving digital channels.” The Commonwealth Bank has branches in Bunbury and Eaton, but the next closest branch to the north is in Mandurah, to the south in Busselton and Margaret River, and to the east Manjimup and Northam. A CBA spokesperson also welcomed the taskforce. “Our branches in regional Australia play an important role in delivering great service to our customers now and will into the future as we continue to maintain the largest bank branch network in Australia,” the spokesperson said. Bankwest, part of the Commonwealth Bank group, has opened two branches in the past five years, offsetting their closure of 14 branches in WA. “Customers continue to choose digital options to do their banking in their own time, with branch traffic declining as a result, requiring us to reassess how we best support customers, from digital investment, to adapting our network,” a Bankwest spokesperson said. The Westpac website shows 105 bank branches throughout Perth, yet only 31 branches for the rest of WA — 10 of which are in the South West. A Westpac spokesperson said the bank was investing in the way customers choose to bank. “This follows a significant shift towards digital and cashless banking, and declining foot traffic in bank branches,” the spokesperson said. “When we do close a branch, it is not a decision we take lightly. We take into consideration customer usage, location and proximity to other banking services. ANZ’s WA general manager Kathleen Jahour said the bank had a seen a 60 per cent reduction of in-branch transactions across ANZ in the past five years, but remained committed to regional Australia. “In the last year alone we’ve seen 70 per cent of our customers prefer online banking methods,” she said. “In addition to branches, we offer our customers a range of banking solutions including internet banking, the ANZ App, phone banking and Smart ATMs enabling our customers access to many of the same transactions they could make in a branch, including making withdrawals and to deposit cheques and banknotes.” Each of these banks told the South Western Times face-to-face banking was supported by Bank@Post services through Australia Post. An Australia Post spokesperson said they had been providing key financial services to local businesses and economies for years. “Bank@Post is particularly important for Australians living and working in regional and remote communities, together with small businesses in those communities, and is available at more than 3500 local Post Offices around the country.” More: Nationals slam South West bank closures