Bankwest called upon to face parliamentary committee after branch closure announcement
A senate inquiry examining the difficulties of regional banking has asked Bankwest to explain its decision to close 45 branches.
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Bankwest is being called upon to explain before a senate committee why it has decided to close 45 branches in Western Australia as the bank embraces a more digital space.
The 130-year-old former Bank of Western Australia announced on Wednesday it would rebrand 15 of its branches in regional areas under the banner of Commonwealth Bank, which owns Bankwest.
The bank said the decision followed “rapidly changing customer preferences,” and that the axing of its branch network would “unlock a range of long-term benefits for Western Australia”.
The bank has now been invited to appear at Regional and Rural Affairs and Transport Committee hearings in the Pilbara scheduled for March 13.
Committee chair senator Matthew Canavan said while he was disappointed in the decision, he was relieved some regional towns would not be left without a bank as Commonwealth Bank plans to take over some branches.
“These closures will impact all the communities that they operate in, reducing banking choice and the ability to get an essential service,” Mr Canavan said.
“Even though all staff are being offered alternate career opportunities these could still see job losses as a result of requirements to move or take on substantially different roles to what they were working in previously.
“Our regional communities already struggle with employment opportunities, and removing the jobs that these branches provide impacts smaller communities so much more than metropolitan centres.
“It’s quite clear that as a country we need to rethink the government’s approach to policy to protect regional banking services and ensure that it’s available to our communities.”
Bankwest said fewer than two per cent of customers visited a branch regularly and 97 per cent of transactions now occurred digitally.
It went on to further state on average just 15 over-the-counter transactions occurred in regional WA every day.
Those residents impacted will still be able to access banking options at Australia Post outlets through the Bank@Post model.
But committee member senator Gerard Rennick said regional residents deserved to have proper access to banking options that were not available at Australia Post.
“The continuing closure of branches by the major banks shows why a public bank is needed to ensure that banking services are available to all Australians regardless of their circumstances,” Mr Rennick said.
“Banking is an essential service and it is the role of government to ensure that every Australian can access essential services.”
The Bankwest branch closures comes just two months before the Rural and Regional Affairs and Transport Committee will be delivered back to the Senate on May 16.
Senator Richard Colbeck the committee has been hearing plenty of people raising concerns about the vital banking services being lost.
“Every week in our hearings we hear from local communities how important these essential services are and how their communities are affected, yet those who are given a license to provide those services, the so-called service sector, continuously ignore those pleas and withdraw services – it is as though their ears were painted on,” Mr Colbeck said.
Bankwest and Commonwealth Bank have confirmed all staff will be offered alternative employment options.
Originally published as Bankwest called upon to face parliamentary committee after branch closure announcement
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