Banks driving change to digital, says finance sector union

A bank customer is fuming over the closure of another branch in North Queensland.

Another bank is closing branches in North Queensland, raising concern about the loss of jobs and of financial services, particularly for people who don’t use internet banking.

In a letter to customers, National Australia Bank has announced its Castletown branch in Townsville will close on March 31.

Also, while NAB customers in Queensland and Victoria have complained that branches in Ballarat and Bribie Island have refused to take cash payments on credit card accounts because of a change in policy, the bank has denied this is the case.

In a letter to customers, NAB Retail Customer Executive - North Queensland Nadine Sleeman says the Castletown branch is closing because of changes in the way customers are banking.

She says people’s everyday banking needs are important to NAB and that, before the branch closes, customers can come in and be educated about online banking.

But Financial Sector Union Queensland executive secretary Wendy Streets says saving money, as well as changes in the way people are banking, are driving the changes.

“We don’t believe (the bank’s stated reasons) are an honest reflection of what people want to do with their banking,” Ms Streets said.

“The changes are very much bank driven, not customer driven.”

She said 360 Big Four and Suncorp branches had closed around Australia since the start of the pandemic and banks were using Covid as an excuse to speed up already planned closures.

Some staff redeployments were occurring but hundreds of jobs had been lost, she said.

Ms Streets said NAB had introduced the policy on refusing cash payments on credit card accounts in branches which were redirecting customers to Australia Post outlets.

NAB is closing its Castletown branch in Townsville on March 31.

But in a statement NAB Group Executive Personal Banking Rachel Slade says NAB continues to take credit card payments over the counter in branches.

“Any suggestions otherwise are wrong,” Ms Slade said.

Even so, media outlets have obtained NAB training documents showing staff are being trained in how to answer questions including: “why we are changing the way we process credit card payments in branch”.

On the Castletown closure, Retail Customer Executive Emma Hounsell said there would be no job losses.

“We have already secured new opportunities for the branch team, allowing them to continue to support customers either through other branches or across phone and digital channels,” Ms Hounsell said.

One customer, who did not want to be identified, said there were line ups of customers at NAB’s Willows branch in Townsville.

“They’ve come out saying they are doing the right thing by customers but they are not. It’s about saving money,” the customer said.

“I have an elderly father who doesn’t have internet banking and this is going to make it more difficult for him to withdraw money.”

Bank branches have been closing across North Queensland, including Suncorp closing its branch in Ayr last year.

Ms Slade said more than 94 per cent of customer interactions were now taking place over the phone, by video or online but that they were also improving and upgrading their branch network, including 22 in regional locations.

ELDERLY COUPLE’S HOME INSURANCE PREMIUM SOARS 152.6%

AN elderly couple said they nearly passed out when Suncorp asked them to pay a 152.6 per cent increase in their home insurance bill.

The request came in a letter with little explanation and was followed by another telling them to pay the premium – a total of $5517.52 – by this Friday.

“We went in to see them when I got it because I nearly passed out,” Joan Ollett said. “We’ve never had trouble with Suncorp. We’ve never been behind in our bills.”

Joan and Kevin Ollett. Joan says she nearly passed out when she saw the size of the increase in their Suncorp insurance bill.

Joan, 87, and Kevin Ollett, 91, have lived in their tidy Railway Estate home for 69 years.

They say a window was smashed by debris in Cyclone Althea in 1971 but other than that they’ve had little damage.

They were evacuated in the 2019 floods and a claim made on their behalf for mould damage.

“It’s bloody number one, you can see that,” Mr Ollett said of the home.

They bought the land from the council for 140 pounds and the home was built through a Queensland Housing Commission loan and insured by the State Government Insurance Office before it was rolled into Suncorp in 1986. Suncorp’s renewal letter says “factors like the claims we experience, improved data and changes to business costs can have an impact” on premiums.

Or there could be “changes to rewards, discounts or free coverage you received last year”.

A Suncorp staff member told them to ring up rather than come into their branch.

“The first call I made I got a lady in the Philippines,” Mrs Ollett said.

A staff member told them the increase was because of “where you live” and changes to flood and storm surge maps.

A Suncorp spokesman said: “This area is at risk of storm surge, cyclone and flooding, and these are significant factors when calculating insurance premiums, alongside claims history and other insurer costs.

“Suncorp’s risk modelling is based on numerous data inputs, such as information from local, state and national governments, hi-res satellite imagery and additional risk modelling by third parties such as universities.”

They have switched to another insurer, paying a 38 per cent increase.

Originally published as Banks driving change to digital, says finance sector union