‘In the lurch’: Bank slammed after announcing over a dozen closures
An Aussie bank has been slammed for its “attack on regional communities” after announcing it will shut over a dozen branches from April.
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An Aussie bank will close more than a dozen branches across the nation in a move which has been slammed as an “attack on regional communities”.
People First Bank announced it will permanently close 11 Heritage Bank branches and seven People’s Choice branches, the majority of which are located in Queensland, from April 4, in response to “changing customer needs”.
Heritage Bank merged with People’s Choice Credit Union in March 2023.
“We know the important role branches play in local communities, so these decisions are only made after much careful consideration,” Chief Customer Officer Maria-Ann Camilleri said in a statement.
“Increasingly, our customers are choosing ATMs, Internet Banking and our App for their day-to-day banking, with branch use now accounting for less than one per cent of all transactions. Less than 0.7 per cent of customers associated with these branches have used a branch monthly in the past year.”
The closures include 11 Queensland Heritage branches at Beenleigh, Brookside, Capalaba, Indooroopilly, Mermaid Waters, Nambour, Nerang, Noosa Civic, Strathpine, The Pines Elanora, and Victoria Point.
Eight People’s Choice in Seaford, Northpark, Victor Harbor, Gawler, Warrnambool, Maryvale and Darwin will also shut their doors.
The bank said all branch workers will be offered alternative roles and regular customers who use the branches will be informed of alternative ways to bank.
Finance Sector Union national assistant secretary Jason Hall slammed the move, accusing the bank of “leaving thousands of customers in the lurch”.
“These aren’t the first branch cuts of 2025, but they are the largest,” Mr Hall told The Courier Mail.
“It also really plumbs the depths of irony for a bank calling itself People First to start their new brand by slashing branches and staff, putting last the people they claim to put first.”
“This is an attack on regional communities that depend on local bank branches.”
In her statement, Ms Camilleri defended the decision, saying it will have “little to no impact” on the majority of customers who bank digitally.
“While these decisions are challenging, we need to prioritise the services our customers use most,” she said.
“This means reallocating people and resources to higher-demand areas, such as our 24/7 contact centre, and investing in technology to meet customers’ need for simple, convenient digital banking. We will support everyone affected with care and understanding.”
Bank of Queensland shuts branches
It comes weeks after the Bank of Queensland announced it would close 16 branches across the country this month.
The bank said it would close 14 branches across Queensland, WA, NSW and Victoria throughout February, adding to the two branches already confirmed for closure next month.
Between February 7 and 27, one branch will close in Western Australia, three in NSW, five in Victoria and seven in Queensland.
In a statement, a BOQ spokesman said the bank had “made the difficult decision to close” the branches as it looks to “simplify operations” and digital banking.
“We are focused on supporting our people throughout this process and are pleased that most team members will transition to new roles across our network,” the spokesman said.
“As our branch network evolves in line with our business priorities and growth corridors, we remain committed to providing our customers with exceptional service.”
Meanwhile, NAB has gone against the grain, announcing last week it would open 17 more branches on Saturdays – from February 1 – bringing its total to 29 after a trial late last year.
The major bank is also installing 39 new ATMs at branches across the country.
The Saturday trading hours are a win for NAB customers in the cities, even though NAB says 93 per cent of transactions are done online.
Nearly 800 bank branches have been closed in regional areas between 2017 to 2023, according to the Australian Prudential Regulatory Authority.
The big four Australian banks have removed 217 ATMs in the past 12 months. More than 8300 bank-owned ATMs have been removed in the past seven years.
- With NCA NewsWire
Originally published as ‘In the lurch’: Bank slammed after announcing over a dozen closures
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