More bank closures a cut to those who need them
As more regional banks close, is there a solution to protect older Australians and the many others who need face-to-face banking services?
Armaguard agreement extended
Major banks and retailers have reached an agreement with Armaguard to extend their financial contribution for a further six months.
This will see Armaguard receive an extension of $25.5 million from July to December. This is in addition to the approximately $50 million already provided over the last 12 months to support cash distribution across the country.
This funding extension will allow work to continue on the development of an independent pricing mechanism to support a sustainable cash-in-transit business in the longer term.
All parties said they remain committed to working to achieve a sustainable and more efficient cash-in-transit business into the future.
The funding parties include ANZ, Australia Post, Coles, Commonwealth Bank of Australia, National Australia Bank, Wesfarmers, Westpac, and Woolworths Group.
Reserve Bank wants ban on card surcharges
The Reserve Bank of Australia (RBA) has proposed three major reforms to the Australian payment system, including:
The removal of surcharging on eftpos, Mastercard, and Visa cards, saving consumers about $1.2 billion in card surcharges each year.
Lowering the cap on interchange fees paid by businesses, saving merchants $1.2 billion in interchange fees a year.
The RBA will seek feedback until 26 August, with a finalised proposal due by the end of the year. NSA is shaping a submission as part of its contribution to the feedback process.
The “better big bank”, that prides itself on having the most branches and supporting regional communities, has announced it is closing 10 branches, in some cases leaving communities without any in-person banking services at all.
The Financial Services Union described the closures, including five in regional communities, as a “slap in the face from a bank which most Australians know as the largest regionally based bank, and a supporter of regional communities”.
Bendigo Bank said the decision was difficult to make but noted that it maintains more branches per customer than any other bank.
The following branches will close from August:
Victoria
South Melbourne, closes on Friday, 1 August 2025
Malop St, Geelong, closes on Friday, 1 August 2025
Bannockburn, closes on Thursday, 25 September 2025
Yarram, closes on Friday, 26 September 2025
Korumburra, closes on Friday, 29 August 2025
Ballarat Central, closes on Friday, 31 October 2025
Queensland
Malanda, closes on Friday, 26 September 2025
Tully North, closes on Friday, 26 September 2025
Tasmania
Kings Meadows, closes on Friday, 1 August 2025
Queenstown, closes on Friday, 26 September 2025
Bendigo Bank’s decision follows a deal struck by the Federal Government and the big four banks, but not Bendigo, to keep their regional branches open until at least mid-2027.
Almost 800 branch services closed in regional areas between June 2017 and June 2023 according to data collected by the Australian Prudential Regulatory Authority (APRA).
A Senate inquiry into the closures found that “without regulatory intervention, banks will continue to close branches and communities will pay the price”.
The inquiry report recommended the Federal Government guarantee “reasonable access to cash and financial services for all Australians”.
The committee reaffirmed its view that access to cash was vital to regional communities.
It also recommended the government investigate the feasibility of a publicly owned bank and set up a Regional Community Banking Branch Program.
“Consideration could also be given to using this fund to help enhance financial services available at Australia Post,” it said.
Keep Cash campaign
National Seniors Australia (NSA) is campaigning on behalf of seniors to ensure cash remains readily available for those who want to use it.
The move towards a “cashless society” is disproportionately impacting seniors who struggle with technology and online banking, highlighting concerns about digital exclusion.
Although online facilities are convenient for many of us, digital systems also pose risks during outages and natural disasters, highlighting the importance of cash being an option during emergencies.
What we’re calling for:
Cash should be recognised as an important part of the financial and payments system.
All businesses should be subject to a ban on charging a surcharge for paying in cash.
All relevant businesses should be required to clearly post if they accept cash or not and any payment surcharges.
Find out more about our Keep Cash campaign here.
Executive director of the LPO Group, Angela Cramp, spoke about the issue on ABC Radio, arguing that post offices can provide the bricks and mortar to deliver banking services to regional communities.
The LPO Group represents Australia Post licensees, who are already providing basic banking services on behalf of larger banks via Bank@Post but are concerned the current arrangements are not financially sustainable or adequate.
The LPO Group argues that the Federal Government establish a postal bank to sustain the Australia Post network and fund infrastructure.
According to Ms Cramp, “We should actually be our own postal bank. The government should step up and provide a banking services through Australia Post… it would be a bank that has a social licence to provide financial services to everyone across the country.”
National Seniors Australia (NSA) supports the proposal to enable Australia Post to provide financial services to regional communities.
In our 2025-26 Budget Submission, we told the government that face-to-face banking is an essential part of the banking system.
The shift to online banking, and the exit of banks from alternatives, is diminishing the lives of those in the community who are not comfortable with digital technology, are vulnerable, or simply need face-to-face support for complex banking needs.
In other sectors of the economy, there are provisions in place for the retention of infrastructure to support vulnerable people. For example, in the telecommunications sector, a levy has been used to deliver infrastructure, such as fixed lines and payphones, in the transition to mobile technology.
Post offices can have an important role to play in maintaining vital banking services. So, we have recommended that the Federal Government support Australia Post to provide banking services in the manner most appropriate.
Australia Post could leverage its existing branch network (one of the largest retail footprints in Australia) to provide face-to-face banking services and access to cash in regional, rural, and remote areas of Australia.
Related reading: FSU, ABC News, NSA, ABC RN
Photo: Tim Mossholder / Pexels
