Bank branches are closing at rapid rate as COVID bites customers

A huge wave of bank branch closures across Victoria could soon pass 100 in a huge blow for local shopping strips already crippled by COVID, prompting calls for future cuts to be revealed.

Bank branches have been closing across Victoria at their fastest rate in two decades as the pandemic pushed more customers toward digital banking.

Since COVID-19 struck in early 2020 there have been 95 permanent shutdowns completed or scheduled, according to bank figures and Finance Sector Union data.

Nationally the number is almost 300.

Temporary COVID-related closures of some bank branches are continuing, and hundreds of ATMs have disappeared in a “real blow to communities”, the union says.

FSU national secretary Julia Angrisano said there had been a sharp rise in branch closures in the past two years and the number was growing at its fastest rate since the early 2000s.

“It’s a real blow to the forgotten Australians,” she said.

“Not everybody can move to digital banking – people with disabilities, those with low levels of digital literacy, and those with English as a second language or limited access to transport.”

Bosses of the four major banks are scheduled to appear before a parliamentary committee on Thursday and Friday this week.

Ms Angrisano said workers were feeling anxious about their future and she called on banks to outline future branch closure plans “so we’re not dealing with death by a thousand cuts”.

“The pandemic has fast-tracked the closures – it forced people to move to digital banking as a necessity to keep people safe and at home,” she said.

“They have used the pandemic as an excuse to close branches at a faster rate.”

A Commonwealth Bank spokeswoman said COVID-19 had not changed how CBA determined its branch footprint but had “accelerated a continuing shift in customer preferences toward digital and contact centre services”.

Some recent regional branch closures had seen transactions drop by almost half in the past five years, she said.

NAB’s executive general manager retail, Krissie Jones, said the bank’s investment in services and locations was guided by how customers banked.

“More than 93 per cent of customer interactions are now taking place over the phone, by video or online,” she said.

“Over the past several years, fewer customers are coming into branches and foot traffic has lessened dramatically. Over the last year alone, we have seen a further 30 per cent reduction in over the counter and basic servicing transactions in our branches.

“When we do close a branch, our goal is for no job losses … The branch team also work closely with local customers, the community, business and government stakeholders.”

Last week Westpac and its subsidiaries Bank of Melbourne, St George and BankSA began closing or co-locating 48 branches, but it numbers have been dwarfed by ANZ, which has closed or announced plans to close 131 branches since early 2020.

NAB has closed or is closing 45, the Commonwealth Bank 32, and Suncorp 20, the FSU says.

VICTORIAN BANK BRANCHES

Closed or closing

ANZ

Brunswick, Bundoora, Cheltenham, Corio, Docklands, Donald, Geelong, Ivanhoe, Kangaroo Flat, Moe, Mordialloc, Morwell, Mulgrave, Niddrie, Somerville, Cohuna, Drouin, Kyabram, Maffra, Melbourne 353 Elizabeth St, Mortlake, Mount Eliza , Mount Waverley, North Melbourne, Rosebud, South Yarra, St Kilda, Collingwood, Hampton, Port Melbourne, Reservoir, Torquay, Bright, Cowes, Numurkah, Port Fairy, St Arnaud, Stawell

Bank of Melbourne

Balwyn, Berwick, Brunswick, Bundoora, Burwood East, Carnegie, Ferntree Gully, Forest Hill, Hawthorn, Ivanhoe, Karingal, Mentone, Oakleigh, Rowville, Springvale, St Kilda, Toorak

The Commonwealth Bank

Berwick, Cheltenham, Dimboola, Korumburra, Monbulk, Seaford, Tatura, Timboon

National Australia Bank

Carnegie, Balmoral, Yarram, Thomastown, Ballarat, Rowville, Rutherglen, Heathcote, Cobden, Dromana, Dandenong South, Eltham, Yarram, Hawthorn, Monbulk

Suncorp

Knox, Richmond

Westpac

Belmont, Carnegie, La Trobe University, Melbourne 114 William St, Mildura - Business Division, Monash University, Mount Eliza, North Melbourne, Seaford Central, University Hill, Victoria Harbour, Warrnambool, Glenferrie

Source: Bank figures, Finance Sector Union, regional media reports

Originally published as Bank branches are closing at rapid rate as COVID bites customers