Westpac joins CBA to pause regional branch closures

The banking major hits pause on closing regional branches like CBA amid a parliamentary review, but stops short of postponing branch mergers.

The thorny issue of branch closures was referred to the Rural and Regional Affairs and Transport References Committee, and a report is scheduled to be completed by December. Picture : David Geraghty / The Australian

Westpac has joined Commonwealth Bank in pausing regional branch closures while a parliamentary committee examines how exits are impacting communities, but the former stopped short of postponing branch mergers.

The thorny issue of branch closures was referred to the Rural and Regional Affairs and Transport References Committee last week for an inquiry, and a report is scheduled to be completed by December.

“Westpac looks forward to working with the Senate references committee inquiry,” a bank spokesman said.

“Westpac will postpone eight regional branch closures that were announced in February 2023. No further decisions on regional closures will be made while we engage.”

But the spokesman said the bank would continue its announced branch co-location program, where it is combining brands such as Westpac, St George, Bank of Melbourne and Bank SA under one roof.

“These co-located branches allow us to invest and stay in communities and have been well received by customers in more than 30 locations,” he added.

The branch closures that will be postponed include Westpac branches in Denmark Western Australia, Sale in Victoria and Robinvale in Victoria. In Queensland, the branches are located in Gatton, Cloncurry, Ingham and Tully.

A BankSA branch will also see its closure postponed. It is located in Kingston SE.

Westpac’s decision doesn’t, however, halt branch exits that were announced ahead of this month such as those occurring in Friday in Coober Pedy in South Australia and Port Douglas in Queensland. A further four regional Westpac branches are slated to close next week.

Westpac is also in the process of merging the branches of its brands and more than 30 branches have been co-located, with plans outlined to co-locate a further 100 over 18 months.

The Senate committee is accepting submissions on the branch closure matter until March 31, in response to concerns about the impact the withdrawal of face-to-face banking services may have in some regional areas and towns.

A CBA spokesman on Monday said following a request from the Senate committee, the bank would not close any regional branches “while the inquiry is underway in 2023”.

“As an additional sign of good faith, while the inquiry is under way … CBA will postpone the closure of two branches already announced. We continue to welcome constructive engagement with government, industry and communities,” the spokesman added.

National Australia Bank’s retail executive Krissie Joneson Wednesday said the bank would work constructively with the Senate committee, but she highlighted that 93 per cent of customer transactions were taking place online.

“We will be continuing our branch reshaping process during the committee’s deliberations in 2023, which will include closures, consolidations and new investments,” Ms Joneson added.

ANZ’s spokesman on Monday said the bank was “considering the matters raised in the senate inquiry’s terms of reference” and would engage constructively with the inquiry.

The latest official points of presence data shows 4014 bank outlets providing a “branch level of service” as at June 30, down from 4323 a year earlier.