State MP Rachel Merton is calling for a halt to the ongoing closure of banking branches in Australia, particularly in regional areas. Major banks, such as the National Australia Bank (NAB), have been closing branches and ATMs due to the increasing popularity of online digital services. However, Merton argues that this is causing inconvenience for customers, especially those who rely on face-to-face banking services.
Merton, a Liberal Party Member of the Legislative Council, has put forward a motion for the government to limit further bank closures. She believes that banks should be more innovative and explore different models to continue providing face-to-face banking services in the community. Merton points out that in the six years leading up to June 2023, bank branch numbers in New South Wales fell by 36 percent, while bank ATMs dropped by 58 percent.
In an interview with 2GB radio, Merton expressed her concern about the relentless push to slash branch networks and remove ATMs, which she says is affecting both metropolitan and regional areas. Customers are being forced to drive long distances just to access a branch, which is not feasible for many people in places like Lithgow. Merton emphasizes that the closure of branches disproportionately affects vulnerable groups such as the elderly, disabled individuals, small business owners, and non-English speakers who rely on over-the-counter face-to-face banking services.
The NAB has confirmed that it will be closing some branches across Australia due to the declining number of customers using physical branches. In New South Wales alone, the Lithgow and Oberon branches closed in April, with more closures scheduled for June. The bank has provided fact sheets on their website outlining the nearest alternative branches and post offices where customers can access banking services.
The NAB is not the only bank moving towards a digital-only model. Bankwest, a subsidiary of the Commonwealth Bank, announced in March that it will become a digital-only bank in 2024. This includes the closure of 45 branches in Western Australia. Investment bank Macquarie is also phasing out over-the-counter cash and cheque services from May 20.
Despite these closures, Westpac recently made a promise not to close any more regional bank branches until at least 2027. The bank acknowledges the challenges faced by customers in rural areas, such as limited internet connectivity and increased travel times to reach their nearest branch.
The issue of bank branch closures raises important questions about accessibility and inclusivity in the banking sector. While digital services are convenient for many, it is crucial to consider those who rely on face-to-face interactions for their banking needs. State MP Rachel Merton’s motion to halt further closures highlights the need for banks to listen to their customers and find innovative solutions to continue providing essential services to all members of the community.
