Westpac closing five more bank branches across Sydney, Melbourne, Brisbane
A major Australian bank has been accused of “making sure its billion-dollar profits are pumped up” as it slashes more branches.
Westpac is continuing its “savage branch closure program” with another five sites set to be shuttered across the country, the Finance Sector Union said.
It comes after the major bank announced it was shutting down 20 bank branches across four states in Australia at the start of last year as the big four come under fire for closing the last remaining bank in many regional towns.
The Finance Sector Union (FSU) said Westpac was “ignoring community concern over its savage branch closure program” by slamming shut five metropolitan branches at the same time it has agreed to a moratorium on regional closures while a Senate inquiry is under way.
The branches that are set to get the axe include Mortdale and Neutral Bay in Sydney, which will close on April 21, alongside the St George branch at Queen St, Brisbane, and Bank of Melbourne branches at Brimbank and Point Cook.
“Westpac’s decision to shut down city branches while a Senate inquiry into regional bank branch closures is under way reveals exactly what they think of the community’s legitimate concerns about branch closures where ever they happen,” FSU national secretary Julia Angrisano said.
“This bank doesn’t care about customers or staff. It only cares about profits.
“By closing branches, Westpac is making sure its billion-dollar profits are pumped up so senior executives keep their fat bonuses coming in,” she said.
“We know bank customers are under financial stress as rising interest rates and the cost of living eat into their pay packets.
“At a time like this many customers will want to be able to go to their local branch and seek help to manage their finances.”
A Westpac spokesperson said the “decision to close a branch is not made lightly”.
“We consider a number of factors such as branch usage, customer demographics, location and proximity to other transaction banking services, including other local branches and our Bank@Post service,” they said.
“We are witnessing a significant change to the way people are choosing to bank. Customers are using branches less, for fewer reasons, and choosing to use digital and virtual banking more often, allowing them to do their banking from home or work.”
But Ms Angrisano hit back and said while all the banks used the excuse that branches are closing because customers prefer digital banking, “our members tell us that they are forced to push customers on to online banking whenever they go to a branch”.
“So much for Westpac’s announcement it would join a moratorium on regional branch closures. Once the Senate inquiry concludes, we know the bank will keep closing branches no matter what the inquiry recommends,” she said.
“The arrogance of Westpac is only exceeded by the size of its executive salaries.
“It’s time the Federal Government regulated the banks so they are required to provide a minimum level of financial services to Australians, no matter where they live.”
For the opal mining town of Coober Pedy in South Australia, their last bank branch – a Westpac – closed on February 17.
Locals warned it would force people to drive thousands of kilometres with hundreds of thousands of dollars in cash, and would leave vulnerable customers exposed.
The Australian Prudential Regulation Authority said 575 regional banks closed between mid-2017 and mid-2021.
The Senate inquiry, which has been referred to the Rural and Regional Affairs and Transport References Committee, will report back to parliament by December 1.
It will investigate the reasons given for branch closures, the economic and welfare impacts on customers in regional communities, and the effect of the removal of face-to-face cash services, among other things.
Senate Rural and Regional Affairs and Transport committee chair Senator Matt Canavan asked banks to halt closures to show they were approaching the inquiry in good faith.
“Banks provide a vital service. When a bank leaves town with no way to access banking services, they leave that community behind,” he said last month.
“I call on all the banks to stop closing branches until they can hear how their planned closures would affect local communities and towns.”
Submissions to the inquiry close on March 31.
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