Banks can do better: Regional Banking Taskforce report says the big four can do more

The nation’s biggest-ever investigation into mass bank closures in regional Australia has pointed the finger at companies behind the shutdowns, finding more could be done to avoid withdrawals outside the metro area. But in holding banks to account, governments were not let off the hook, with key telecommunications upgrades identified to better bridge the access gap between city and country customers. The Australian Banking Association has welcomed the report, saying they would work directly with personal and business customers to implement change. Regional Australia has lost more than 600 banks since 2017, the closures disproportionately affecting regional customers, with some needing to travel hundreds of kilometres to get to their nearest branch. The Regional Banking Taskforce’s final report, released by the Treasury department on Friday, unveiled seven key recommendations that highlighted the need for better bank regulation and more support for country customers. This landmark report follows a domino of branch closures across regional WA, and comes just weeks after Westpac and Bank West revealed plans to slash branches and trading hours nationwide. In releasing this report, Assistant Treasurer and Financial Services Minister Stephen Jones said banks “can do more” when closing a branch in the regions. “The taskforce found banks can do more to communicate with individuals and communities when closing a regional branch,” he said. Another core finding was the need to review and strengthen the ABA’s branch closure protocol, to implement rigorous branch closure impact assessments before a closure could go ahead. An ABA spokesperson said banks will “further strengthen” their branch closure protocols, as well as improve support for customers transitioning to digital banking services. “Australian banks are investing heavily in digital functionality and the security expected by their growing number of digital customers,” the spokesperson said. But the report called State and Federal governments to task, outlining a need to co-invest with industry and other levels of government to improve internet access. This recommendation calls for the Federal Government “to invest in telecommunication services through its Better Connectivity for Rural and Regional Australia Plan” in order to “significantly” improve infrastructure. A stark example of the telecommunications gap is a 2021 survey by the Harvey Shire, which found 26 per cent of their population don’t have internet access at all. Despite this, Bendigo Bank closed its doors in Harvey in August, customers forced to take a 100km round trip either north or south to the bank’s nearest branches in Bunbury and Pinjarra. The NAB left Harvey in 2018 and about a year later cut its Waroona branch trading hours. The town also lost its only taxi service in 2021. In the past five years the big four banks have closed their doors in Waroona, Harvey, Australind, Bunbury, Dunsborough and Augusta, and further afield in Kondinin, Wyalkatchem, Three Springs and Wagin. For residents in Three Springs, losing NAB means the closest bank is now 150km away in Geraldton. On September 15 Westpac Bank confirmed it would slash 24 branches and 103 jobs from its national network, shutting its doors in the South West towns of Collie and Bridgetown in December, ahead of closures in Tom Price in the North West and the Wheatbelt town of Wongan Hills. ANZ closed its doors in Australind in 2019 and in Dunsborough in 2016, the Commonwealth Bank closing its Harvey branch in May 2021 and in Collie in 2019, with Bank West closing its Augusta and Bunbury Centrepoint branches in June and August last year. More than 400 public submissions were made to the taskforce, followed by four roundtable meetings with banks, key stakeholders and government, informing a year-long examination into the trends in bank branch closures and how they affect regional communities and economies. Senior representatives from ANZ, Commonwealth Bank, NAB, Westpac, Bendigo and Adelaide Bank and Bank of Queensland were brought together with key industry stakeholders, including the Australian Banking Association and Australia Post, to look at how how bank branch closures have affected individuals and regional communities.