Westpac pilots new community service to keep bankers in country towns
A banking executive argues that 96 per cent of transactions now happen digitally but regional communities still need human connection for major financial decisions.
Australia is a country of rich diversity, and every regional community is different. The coastal South Australian town of Tumby Bay, population 1500, has different banking needs than the NSW regional city of Tamworth, population 43,900. Yet for too long, we’ve tried to serve them all with the same model.
What if, instead of assuming one approach fits all, we got creative about tailoring services to match what different communities actually need? That’s the challenge and the opportunity facing those of us working in regional banking today.
The reality is that 96 per cent of banking transactions now happen digitally. Regional Australians have embraced digital banking with the same enthusiasm as those in the city, valuing the convenience of managing finances from the kitchen table or the tractor.
But digital capability doesn’t eliminate the need for human connection. When you’re making a significant lending decision for your business, dealing with a complex issue, or planning for succession, you want to sit across from someone who understands your circumstances.
In my team, our Regional Commercial & Agribusiness bankers have always worked this way. They’re constantly on the road, meeting customers on the farm, around kitchen tables, and in industrial estates. And they’re not just flying in and out – they’re part of their communities. Around 80 per cent of our bankers still live within 300km of where they were born.
They understand that the foundation of their business relationships is showing up. And while that’s important in the good times, it’s absolutely critical when times are tough. If a natural disaster strikes, or a season doesn’t go to plan, that’s when showing up truly counts.
The question isn’t whether regional Australia needs banking services. It’s whether we’re creative enough to deliver them in ways that match how people actually live and work. At Westpac, we’ve committed to keeping our regional branch moratorium in place until at least 2030, investing more than $65 million in upgrading 50 regional branches, and opening a new model of service centres in towns like Moree, Leongatha and Smithton.
But we’re also piloting something different. Working with local councils in towns like Dungog, Bulahdelah and Manilla, we’re testing a Community Banking Service where mobile bankers make regular visits, operating from dedicated spaces provided by councils. It’s not a traditional branch, but it offers something potentially more valuable: personalised service delivered by bankers who know the community.
This model recognises the truth that one size doesn’t fit all. The key is being open to models that might look different from what we’re used to and being willing to try new things, knowing that sometimes it won’t be perfect straight away. We need to continue to listen and work with communities to iterate and innovate and change course when we make mistakes.
The debate about regional services often gets framed as digital versus physical, or progress versus preservation. But the real question is whether we can be imaginative enough to create hybrid models that deliver the best of both.
Can we provide the convenience of digital banking while maintaining the trust and expertise of personal relationships? Can we partner with local councils and community organisations to deliver services in ways that strengthen community infrastructure?
I believe we can. But it requires letting go of nostalgia for a model that, even at its peak, didn’t work perfectly, and being bold enough to try new approaches that serve regional Australia as it actually exists today – digitally connected, relationship-focused, and ready for innovation.
The opportunity is there. The question is whether we’re open-minded enough to seize it.
Peta Ward is Managing Director, Regional Commercial & Agribusiness, Westpac.
