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 be
“Banks have quite a bit of capital and departing costs tied up in branches and operating costs, and they need to balance that against the service their customers want to use.”, there was still an acknowledgement by government – and independent bodies such as the Reserve Bank – for the need to orchestrate widespread access to cash.
“The storefronts of banks gives them visibility, and while it comes down to cost efficiency and changing client preferences over time, it also depends on what client base they’re serving,” he said.