Westpac, one of Australia’s “Big Four” banks, has made a commitment to keep its regional branches open until at least 2027. This comes as other major banks like BankWest and Macquarie Bank have decided to transition into digital-only platforms. Westpac’s decision is a response to customer feedback, acknowledging challenges with internet connectivity and longer travel times to nearby branches in regional areas.
Jason Yetton, Chief Executive of Consumer Banking at Westpac, emphasized the importance of regional communities in Australia’s economy and stated that the bank wants to be there to support them. In order to do so, Westpac plans to invest over $150 million in its branch network over the next two years. This investment will benefit more than 1,000 employees and 2.2 million customers in 182 regional areas.
The decision to maintain regional branches comes despite an 11 percent increase in virtual banking within the bank. Westpac currently has 5.92 million customers using its banking apps and online platforms. Yetton acknowledged the changing preferences of customers, who are choosing the convenience of digital banking. As part of the investment plan, Westpac will also focus on educating customers about the benefits of digital banking solutions.
In addition to its branch network, Westpac has a partnership with Australia Post to provide cash services to 1,800 communities in regional areas. This partnership involves a $200 million investment over 10 years. Yetton stated that Bank@Post remains an important part of delivering banking services to regional areas, and Westpac will continue working with Australia Post to enhance these services for customers and small businesses.
The move by Westpac contrasts with recent decisions by BankWest and Macquarie Bank to become digital-only banks. BankWest, a subsidiary of Commonwealth Bank of Australia (CBA), will close or convert all its remaining branches by October. This decision has faced criticism, with the Finance Sector Union describing it as “outrageous” and accusing BankWest of abandoning its customer base to cut costs.
Macquarie Bank, which primarily focuses on institutional banking, is also transitioning into a digital-only bank. From late May, customers will no longer be able to deposit or withdraw cash or checks over the counter at any Macquarie branch. These moves reflect the growing trend of customers choosing digital banking options over traditional brick-and-mortar branches.
Furthermore, National Australia Bank (NAB) has announced the closure of at least 13 branches across the country. NAB cited the increasing number of customers banking online or through other digital channels as the reason for these closures. Currently, 11 branches are earmarked for closure, with six in regional New South Wales, three in country Queensland, and one each in South Australia and Victoria.
Data from the Australian Prudential Regulation Authority reveals that Australian banks closed 424 branches and 718 ATMs during the 2023 financial year, with 122 of those branches located in regional and remote areas.
Westpac’s commitment to keeping its regional branches open demonstrates its recognition of the importance of these communities and their contribution to Australia’s economy. By investing in its branch network and partnering with Australia Post, Westpac aims to support its regional customers and small businesses while also acknowledging the increasing popularity of digital banking solutions.
