More than 1400 bank branches have closed in Australia since 2017. But there are key reasons why it’s important for banks to maintain their physical presence.
The decline in physical bank branches and ATMs will continue as customers abandon cash transactions but the move risks marginalising less tech-savvy people or those whose first language is not English.
“A range of Bankwest customers will be badly affected including the most vulnerable in our community,” Hall said. “Worst affected will be the elderly, First Nations customers, people whose first language is not English, and others who are not computer literate.” CBA’s move to close its Bankwest branches was driven by those physical locations doing an average of about 30 over-the-counter transactions a day, with regional branches averaging half that amount.Business consultancy The Initiatives Group’s managing director Lance Blockley said while there would continue to beand branches around Australia, it would likely slow down over the next year or two. “For the forseeable future, there will always be ATM and bank branch networks,” he said.
“Looking at access points for cash, the Reserve Bank is making sure no one is more than a certain distance away from an ATM,” he said. “I suspect there may be some similar requirements put around banking facilities. At some point, government will step in to ensure access, too.” Branch presence could be especially important for business banking in rural areas where relationship managers were key to serving clients in sectors such as agriculture, Storey said.