Bankwest branches to close in a digital-only transformation but staff will be offered new roles

About 350 people working at Bankwest branches will be affected when Commonwealth Bank shuts the last of those and turns the Perth-based bank into a digital-only lender by the end of the year.

Bankwest branches will no longer exist. Picture: Jeremy Piper

Commonwealth Bank will shut down the last of its Bankwest branches and will turn the Perth-based bank it bought 15 years ago into a digital-only lender by the end of the year.

The nation’s largest lender said the decision was a direct result of the plummeting use of physical bank offices by customers, and would free up capital to invest on its digital products.

As a result, 45 Bankwest branches will be closed by the end of October, impacting about 350 people working at them – all of whom will be offered new roles.

In 2022 the bank decided to close all east coast branches as well as a number of regional locations in Western Australia.

“Over the last decade, and particularly over recent years, we have seen a momentous shift in how customers choose to do their banking,” CBA head of retail banking Angus Sullivan said.

“The vast majority of customers now choose to bank digitally … (and) this trend will only continue in the years ahead.”

About 2000 Bankwest customers who only used a branch will be helped to transition to a CBA branch, the lender said.

CBA said it was committed to the Bankwest brand, which it acquired from HBOS at the height of the 2008 global financial crisis.

CBA has struggled to defend its share of the home loan market over the past year, and Bankwest and CBA’s non-broker channels such as its mobile lenders, digital loans and branches had been the main drivers of a relatively modest rebound in mortgage sale volumes.

“Today’s announcement is an important step in addressing changing customer demand and meeting competitive pressures head on with a strong digital challenger brand that can meet the needs of more Australians,” Mr Sullivan said.

Only 3 per cent of all transactions by Bankwest customers were being done in person. Less than 2 per cent of customers visited their branch regularly, the bank said.

Last year, CBA committed to leave all of its regional branches open until the end of 2026. On Wednesday, the Sydney-based parent bank said that 15 Bankwest branches in regional areas would be converted to CBA by the end of the year.

“I understand this will be difficult news for some of our customers and Bankwest is introducing a range of support measures to help our customers who are regular branch users carefully through this transition,” Bankwest executive general manager Jason Chan said.

The bank will introduce support measures such as dedicated community bankers in selected areas, a specialised assistance team, access to CBA ATMs and Bank@Post services, and the program to help transition frequent branch users to CBA accounts if they choose to do that.

The Finance Sector Union criticised the decision, saying the move would be “bad” for employees “who stand to lose their jobs” and would hit Bankwest’s most vulnerable customers the most including First Nations people and those who are not computer literate.

“This is an outrageous decision by Bankwest which has completely abandoned its customer base in order to cut costs and become a digital bank,” FSU national assistant secretary Jason Hall said.

“Maintaining a branch network costs money. But surely keeping faith with a loyal customer base is an important principle when those same customers and the banking fees they pay, have been at the core of Bankwest’s profitability for many years.”

Bankwest said branch employees impacted by the change would be offered dedicated reskilling programs, allowing them to explore career paths in the new digital bank.

CBA will “redirect” about 500 unfilled roles in technology, operations, and customer service to the digital transition of Bankwest. The positions will be offered to the affected staff in Western Australia to minimise the number of who ultimately leave the bank as a result of the decision.

“We are committed to providing a full-range of products and services to our customers across WA, no matter which way they choose to bank with us. For customers who value a simpler, digital experience and a different pricing proposition, Bankwest will provide a very compelling offer,” Mr Sullivan said.