The gradual closure of bank branches in regional towns has been a noticeable – and fairly dramatic – trend in recent years, and one which has caused a degree of angst in communities affected.
Back in 2023, independent research by banking writer Dale Webster found 64% of bank branches in regional Australia had closed since 1975. The study found that, at that time, of the 1226 towns that had bank branches in 1975, only 370 had banks left.
And it is not just the locals who are affected by the slow erosion of person-to-person service … it’s grey nomads, too.
We may be quickly moving to a world where swiping credits cards and debit cards, and scanning phones, is the way we pay for goods and services but, in many Outback businesses, cash is still king.
Part of the fabric: CommBank has operated out of this building in the NSW town of Gunnedah for 95 years. PIC: CommBank
And, of course, after weeks in the bush, travellers commonly need access to a whole host of other banking services as they seek to manage their finances on the road.
Perhaps in response to some community pushback, the Commonwealth Bank has just committed to keep all its regional bank branches open into the next decade.
It first made a regional branch commitment back in 2023, and has now extended that until at least December 2030.
Commonwealth Bank CEO, Matt Comyn, said the bank’s commitment will give customers, local businesses and communities long-term certainty that the banking they trust will remain in place.
“We understand how important access to in-person services is for our customers, along with mobile, phone and online banking,” he said. “We believe this importantly provides certainty for our people and our customers in the near term, while we remain committed to working constructively with the banking industry on a long-term sustainable solution.”
Mr Comyn said that, when customers visit a branch, it’s often because they are resolving an issue that needs personal support.
“Regional communities are central to the Australian economy and our way of life,” he said. “We have been part of these communities for generations, and today we are providing certainty that every one of our regional branches will remain open into the next decade.”
To that end, CommBank says its 281 regional locations will continue supporting cash deposits and withdrawals, everyday banking, and business banking.
“Our customers bank with us in different ways, in a branch, on the phone, online or in the app,” said Mr Comyn. “And we’re investing across all channels so customers can continue banking the way it suits them.”
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Most regional towns have a Post Office where you can withdraw and deposit cash. There are approximately 80 banking institutions available at Australia Post although there are limits to the amount that can be deposited or withdrawn. Deposits are usually limited to $10,000 and withdrawals $2000 per day depending on the financial institution.
Big deal. How much profit did they make last financial year… So doend a bit more .
Lack of banks in the country necessitates a new strategy. Cash up when in major centres because ATMs in small towns seldom dispense more than a couple of hundred $.
My tech savvy kids bullied me into installing banking apps on my phone. What a godsend. Facial recognition or password access with 2FA, I can settle my monthly c/c repayments, transfer funds etc in seconds, from the comfort of my bed, the beach or anywhere with phone signal.
I would be very weary of that – Just think of the AHs now that try and steal our vans & stuff – it would be open season of attacks on Caravans Owners. I for one am lucky if I keep $50 cash on me these days, And my van is parked at my sons home and not at a Van Site.
Slill dont know why the banks cant get together and rent/buy 1 building and put the (at least the big 4) in 1 building. Beats paying for 4 buildings that are only open some of the times.
We have often wanted to open or adjust term deposits and wary of doing this online. So we need to find a local Commonwealth bank to do this face to face. I still want to use a real bank