Bank to keep regional branches open

Branch numbers are down across the country, but Westpac says it’ll put a freeze on closures – for now

16 May 2024
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Amid growing concerns about diminished services, especially outside capital cities, Westpac has vowed not to close any more of its regional branches until at least 2027.

The announcement preempts a Senate committee report into bank branch closures, which is expected to be handed down next week.

Westpac chief executive, Consumer, Jason Yetton, said, “We’ve heard the feedback from customers about the impact of branch closures in the bush and understand they face many challenges, such as limited internet connectivity and increased travel times to their nearest branch.

“That's why we’ll be investing more than $150 million in our branch network over the next two years. This commitment will support more than 2.2 million customers ... and 1,000 employees who live and work in 182 regional areas and means we continue to give customers who prefer to do their banking in-branch access to face-to-face service for their banking needs and cash transactions.”

Mr Yetton’s comments will come as a relief to communities that have managed to keep a banking presence in the wake of widespread branch closures by all banks in recent years.

In late 2023, following the closure of more than 2,000 bank branches in six years, location advisory company AreaSearch predicted that another 450 branches were at risk of closure.

The Senate Standing Committees on Rural and Regional Affairs and Transport has conducted an inquiry into branch closures and is due to report on 16 May.

This is not a new issue. A 2004 parliamentary inquiry identified a growing trend of branch closures and associated challenges for people in regional and remote communities.

In a media statement, Mr Yetton noted that many regional areas were “thriving business and job hubs”, saying the moratorium on closures would benefit Westpac’s small and agri business customers “who have built strong relationships with our bankers who live and work in the area and understand the local business landscape”.

Mr Yetton added that the bank would work with its partners and local governments to “improve regional services and the connection between our branches and local communities”.

He said Westpac’s partnership with Australia Post was critical to regional Australia and its service network. With 96% of Westpac customers living within 20 kilometres of a Bank@Post, this partnership provided cash services to 1,800 communities in rural and regional areas.

“We’re investing more than $200 million over 10 years in our partnership with Australia Post,” Mr Yetton said. “This allows customers to perform the majority of cash and cheque transactions at a Bank@Post.”

Westpac also plans to expand its colocation program, where Westpac, St George, BankSA, and/or Bank of Melbourne would operate from the same branches.

However, the bank’s statement also noted that its customers were increasingly turning to digital channels to do their banking.

Westpac data shows an 11% increase in virtual banking, with 5.92 million customers using its banking apps and online platforms.

“As part of this pause [in branch closures], Westpac will continue to educate customers on the benefits of its 24x7 digital banking solutions to help address the barriers to digital inclusion in regional Australia, while also expanding its virtual service offering,” the statement said.