While many banks are continuing to close branches in regional towns at an alarming rate, not all are doing so.
More community-focussed institutions like the Hume Bank recognise the huge benefits that having a face-to-face banking options brings to local residents … and to travelling grey nomads.
When news broke recently that the last of the physical bank branches in Holbrook was closing, the Hume Bank decided it was time to buck the trend and to open a branch in the small NSW town.
“Our Jindera branch sits within a Greater Hume Shire council building, so we already have the relationship, experience, and track record to be the perfect partner given our business model as a customer-owned bank and existing presence in the region,” Hume Bank CEO Stephen Capello, told the Grey Nomads.
The Hume Bank has been bucking the regional bank branch closure trend. PIC: By George / Albury Business Photography / Hume Bank
“Without a physical branch in the town, we’d have businesses and farmers impacted and the flow-on effect of residents of Holbrook having to drive to the nearest town such as Albury 45 minutes away to seek face-to-face banking.”
Hume Bank says that the trend of regional branch closures is having a significant impact on communities by reducing accessibility and equality, on jobs and on the local economy. And importantly, it says the fact that deposits that are now with banks that are no longer in the region will also leave the community.
“We are really pleased to be able to fill what will be a void in essential services in Holbrook,” Mr Capello said. “Once open, Holbrook will be the fifth local town, where Hume Bank is the only remaining physical bank branch … other towns with similar successful models include Howlong, Rutherglen, Jindera and Culcairn.”
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.
But while the closures in small towns may be justified by the big banks’ financial models, it leaves a big hole in many communities, and represents a major blow to those who prefer to do their banking in person.
“Based on consultation we know there is a need for access to education, expertise and advice, support with new account opening, along with large cash deposits and withdrawals for small business and community groups,” Mr Capello told the Grey Nomads. “Access to in-branch banking also provides customers with a level of confidentiality and privacy, which other alternative models may lack.”
A Senate inquiry into why banks are shutting regional branches so rapidly, and into the potential consequences for regional Australia continues. The committee is due to report back by the end of the year.
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