Australia’s regional bank branches are shutting their doors apace, and it’s causing major pain to local communities … and to travelling grey nomads!
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. And, of course, after weeks in the bush, grey nomads commonly need access to a whole host of other banking services as they seek to manage their finances on the road.
The statistics are startling.
Since September last year, there have been 92 bank branches either closed or slated for closure across the country, with the number of bank branches in regional Australia having fallen from around 2,500 to 1,900 in the four years to 2021.
Even when they don’t actually close, some rural banks are operating for fewer hours. PIC: Cizza
According to independent research by banking writer Dale Webster, 64% of bank branches in regional Australia have closed since 1975. Of the 1226 towns that had bank branches in 1975, only 370 have banks today. And, even worse, 589 towns that once had bank branches now have no banks left at all.
And we’re not just talking tiny Banks withdraw ‘one-horse’ towns.
Westpac has just closed its branch in the opal mining and tourism hub of Coober Pedy, leaving locals and visitors in need of banking services having to make do with the Post Office and private ATMs.
And even that can’t be relied on.
Earlier this year, the town’s ATMs completely ran out of cash!
Westpac has announced it is soon to shut another 20 branches, including those in the Queensland towns of Ingham and Cloncurry, Sale and Robinvale in Victoria, and Kingston SE in SA.
And this is happening in the midst of a Senate inquiry into why banks are shutting regional branches so rapidly, and into the potential consequences for regional Australia. The committee is due to report back by the end of the year.
Julia Angrisano, the National Secretary of the Finance Sector Country towns have been losing face-to-face banking options Union, though already has no doubt about what it all means.
“Bank branch closures have a devastating impact on small towns and regional centres,” she said. “And older people who are not computer literate feel the impact most.”
Jessica Miller, the Policy Officer for the Combined Pensioners & Superannuants Association agreed that the real-world consequences of these ongoing closures were obvious.
“Last year’s report from the Federal Government’s Regional Banking Taskforce acknowledged the importance of face-to-face banking options and access to cash for people in regional and rural communities,” she said. “It’s not that banks aren’t aware of the impact branch closures have, but that closing them is the best financial option, regardless of impact.”
At time of publication, Westpac was the only big four bank to respond to Grey Nomad questions.
“Our customers are using branches less, for fewer reasons, and choosing to use digital banking more often,” a spokesperson said. “Our service approach is responding to customer preference … that’s why we’re investing in digital services so our customers can bank with us anywhere, at any time.”
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Click here to find out more about the prize, and how to enter.
Members: If you wish to enter, please click here.
We need a government bank, just like we used to have before it was sold off.
What do Grey Nomads use banks for these days. Don’t need cash, bills paid by Direct Debit – what else do you us a bank for? I’m 75, and haven’t used a bank for many years and have travelled as a nomad for 10 years. A Government Bank – no thank you, go to China if you want one of those.