NAB resumes closing regional branches after two-year moratorium ends

NAB says COVID-19 has accelerated the take-up of online banking, leading to resume closing regional branches.

For Cobden residents, the future of over-the-counter NAB banking services is also more uncertain with the town’s licensed post office having been listed for sale for several years.

Australia’s biggest agribusiness lender, NAB, has quietly begun closing regional bank branches, blaming COVID-19 for a fall in foot traffic in country areas as more people bank online.

NAB customers in six country towns began receiving letters this week, informing them their branch was “permanently closing”. The bank made no major announcement, unlike in 2019 when it introduced a moratorium on regional bank closures, which ended on December 31.

It continues a wave of bricks and mortar closures across regional communities, with the number of country bank branches plummeting 11 per cent to 2202 in the past four years, according to latest data from the Australian Prudential Regulatory Authority.

While rural communities are fighting to keep businesses open to ensure their survival. Two of the six branches that will close in April are in Trade Minister Dan Tehan’s electorate in south-west Victoria at Cobden and Balmoral. The others are in Dorrigo and Blayney in NSW and Bargara and Murgon in Queensland.

Mr Tehan said: “National Australia Bank has made the decision to close its branches and it should answer to its customers about the reasons for it”.

But NAB Personal Banking Group Executive Rachel Slade said the bank was “proud” it had honoured its regional shutdown moratorium.

“We are proud of the commitment we made in 2019 not to close any regional and rural branches until January 2021” Ms Slade said.

“That commitment provided certainty for our customers and colleagues, many who were living through drought.

Dairy pictured in Cobden. Picture: supplied WT

“COVID has changed the world; it has accelerated digital banking and we have experienced less foot traffic in our branches. Our investment in our services and locations is guided by how customers are banking – through digital channels, with mobile bankers or at a branch.”

Ms Slade said no jobs “have been lost as a result of these closures” and NAB was aiming to stave off redundancies in the future at affected branches.

“Our goal is for no job losses and in the case of a branch closure we will work with our colleagues on new opportunities either in another branch or supporting customers through online chat, over the phone or by video.”

The closures come after NAB slashed the opening hours of more than 100 of its rural branches last July, to a three-hour window from 9:30am.

At the time, Ms Slade said reducing the opening hours would prevent the bank from closing branches. Six months’ later, it’s a different story.

“We understand the importance of bankers to regional and rural communities. Our team will continue to work with customers over the 12-weeks from when we communicate a branch closure until its closure date, taking them through the various banking alternatives available to them,” Ms Slade said.

“This includes connecting customers to a community banker located in the regional community, either face-to-face, by phone or by video. Customers can also connect with our mobile bankers, home lending specialists or business bankers for face-to-face, phone or video appointments, or make deposits and withdrawals at their local Australia Post.

In 2018, NAB was one of the first banks to sign up to Bank@Post, which involved paying a community representation fee or $22m a year to access more than 3500 post offices.

But the three-year deal is up for renewal this year, and with the rise of online banking it is not yet certain if the major banks - with the exception of ANZ, which didn’t sign up to deal in the first place - will sign similar agreements with Australia Post again.

For Cobden residents, the future of over-the-counter NAB banking services is also more uncertain with the town’s licensed post office having been listed for sale for several years. Elders is selling the agency on behalf of its owner, who has worked at the post office for more than 60 years.

According to NAB, almost half of its Cobden customers used the branch just once in the past year, while about 80 per cent also used other branches in nearby towns, including Camperdown, Terang and Timboon, which are within a 20 minute drive.