Push for action on bank closures

It’s part of a worrying trend that has been called out by Murray River Council and the NSW Country Mayors Association, following news ANZ Bank plans to cut 350 full-time jobs.

NAB has also announced the loss of more than 400 jobs when it relocates positions in its technology and enterprise areas to India and Vietnam, and Bendigo is axing a further 145 jobs in technology.

Meanwhile, the Bank of Queensland is axing 200 staff and offshoring half of its contact centre to India.

Country Mayors chairman, Mayor Rick Firman OAM, said it’s feared the ANZ decision will result in yet more bank closures, or a further reduction in services in rural communities across Australia.

“Every single time a bank closes its doors in a remote, rural or regional area, they have made the decision to shift the costs of doing business directly onto their customers” Cr Firman said.

“In remote, rural and regional areas, a bank closure means that customers are forced to travel sometimes hundreds of kilometres to reach their nearest bank branch.

“Are those customers receiving any compensation for that cost? No, they are not.

“It’s not just the costs associated with travel, but the time lost from their own businesses and personal lives.

“How many inquiries into banking do we need for the government to say this is not acceptable?

“By the time we get any action from a Federal Government on this issue, it will be too late, banking in rural communities will be dead.

“We constantly see a pattern of behaviour that is deliberately designed to justify closures.

“First there is a lowering of staff, next the hours are cut, then there are fewer services followed by advice the data shows customers are choosing online banking over face-to-face.

“Finally, we are told that because of falling use, the bank branch will be closed. Well, no surprises there, the outcome has been deliberately engineered by the bank.”

Cr Firman said the Financial Sector Union has estimated that since 2020, 931 bank branches have closed across Australia.

While some are in metropolitan areas where another branch is easily accessible, he said in country areas it is a very different story.

“The constant refrain that Australia Post Banking can fill the gaping hole left by bank closures shows the banks’ alarming ignorance of both the capacity of Australia Post branches to be a bank and underplays the important role that a full-service bank plays in the economic growth of regional, rural and remote communities,” Cr Firman said.

“The introduction of a Community Service Obligation that forces all banks to contribute to meeting the costs of keeping ‘the last bank standing’ open in a rural community is overdue.”

Murray River Mayor John Harvey also echoed calls at Country Mayors for the Federal Government to act on the ‘Bank closures in regional Australia’ inquiry that was concluded in 2024.

“The Federal Government received a report from the Rural and Regional Affairs and Transport References Committee over a year ago and have not acted on any of the recommendations,” Mr Harvie said.

“It’s time that they indicate what they intend to do about these closures.”

The inquiry was referred to the committee for inquiry and report in December 2023, and the report tabled in the Senate in May 2024.

The inquiry status is still listed as report tabled, even though the inquiry’s page has been moved to the list of ‘completed’ inquiries and no government response has ever been provided publicly.

Terms of reference for the inquiry included looking at the branch closure process and reasons for closures, the economic and welfare impacts of bank closures on customers and regional communities and the effect of bank closures or the removal of face-to-face cash services on access to cash.

The inquiry was also to look at the effectiveness of government banking statistics in capturing and reporting regional service levels.