Cash Issuance Ceases at Supermarket in Regional Western Australian Town
In a small regional town in Western Australia, the closure of multiple banks has had an unexpected consequence – a Coles supermarket has been forced to temporarily cease issuing cash-out for customers. This decision comes as a result of recent bank closures in the area, which have left the community with limited access to banking services.
The closure of bank branches in the Kimberley region began in August 2022 when Bankwest shuttered its branch due to staffing challenges. This closure was followed by the closure of Westpac Bank and National Australia Bank in late 2022, also citing staffing issues. The impact of these closures has been felt by the local community, who now face difficulties in accessing cash.
The closure of bank branches has prompted a higher demand for cash services at the Coles store in Kununurra. However, the store is not equipped to handle large volumes of cash from an operational perspective. As a result, the decision was made to temporarily pause cash-out services at this particular store.
A spokesperson for Coles acknowledged the challenging situation faced by the community but emphasized that the store is not operationally equipped to handle large amounts of cash. The decision to pause cash-out services was made to ensure the smooth functioning of the store.
Bankwest, one of the banks that closed its branch in Kununurra, has announced that this closure will be permanent. The bank stated that it is moving towards digital banking and cited a decline in branch transactions as a reason for the closure. With 97 percent of transactions taking place online, Bankwest believes that a physical branch is no longer necessary in Kununurra.
The closure of bank branches in regional and remote areas has become a growing trend in Australia. In the 2023 financial year alone, 424 branches and 718 ATMs were closed by Australian banks. Of these closures, 122 were in regional and remote areas. The Australian Prudential Regulation Authority noted that this decline in branch numbers has been ongoing since 2017, with regional and remote areas being particularly affected.
The closure of bank branches has resulted in communities relying on alternative sources for cash services. Australia Post has stepped in to fill this gap by providing cash services in areas where banks have closed. CEO Paul Graham highlighted the challenges faced by Australia Post in finding people to work in these remote locations. While some argue that cash is becoming obsolete, Graham believes that it still plays a significant role in certain demographics and neighborhoods.
The closure of bank branches and the subsequent impact on access to cash services highlights the challenges faced by regional and remote communities in Australia. The reliance on digital banking may be convenient for many, but it leaves behind those who still rely on cash for their day-to-day transactions. As the trend of bank closures continues, it is crucial to find solutions that ensure all communities have access to essential banking services.
