Big banks flee small towns: 118 regional branches shut nationwide

The rapid rate of big banks shutting branches in the bush is having “a devastating impact on small towns and regional centres”.

Big banks have permanently shut or earmarked for closure 118 branches across regional Australia, out of a total of 400 nationwide, since January 1 last year.

NSW and Victoria are the hardest hit, with 42 and 39 regional closures respectively, according to Financial Services Union data.

Westpac and the Commonwealth Bank have closed 12 regional branches in Victoria, followed by the ANZ with 10, Bank of Melbourne five and the NAB with four.

Regional branch closures have affected several small Victorian towns, including Alexandra, Ballan, Bright, Heathcote, Numurkah, Red Cliffs, Timboon and Yarram. Port Fairy and Warrnambool had two banks each leave town.

Mortlake, in western Victoria, continues to have no physical bank branch or bank ATM. Some post offices offer basic bank services, but not for all banks, including the ANZ.

CommBank permanently shut its Tatura branch in May last year, a bank spokesman telling The Weekly Times: “the Tatura branch was closed after a 47 per cent drop in transactions over five years and increasing digital and phone banking uptake.”

However, Tatura’s NAB branch has reduced its hours and, according to local Jason Jones, cash flow issues were created when the NAB ATM would not allow withdrawals for several weeks recently.

Tatura's Jason Jones in front of the NAB ATM.

“There was less money circulating and locals and traders were not happy. Some had to drive to Shepparton to get cash, but many elderly cannot drive out of town, and the IGA was so overrun they put a cap on EFTPOS withdrawals,” he said.

A NAB spokesman said the ATM issues “have been frustrating”.

The federal government is currently preparing the final report of the Regional Banking Taskforce, established in 2021 to assess the impact of bank branch closures on regional communications.

FSU national secretary Julia Angrisano said bank branch closures had a devastating impact on small towns and regional centres.

“Older people who are not computer literate feel the impact most. Residents could move to a bank that continues to have a local presence,” she said.

“However, from experience, when one bank closes others often follow, sometimes leaving towns without any local banking services.”

Meanwhile, Omeo in Victoria’s high country could lose its Bendigo Bank agency in an East Gippsland Shire service review. The shire subsidises the branch’s operations.

The results of the review will be presented to Omeo residents Wednesday night.

“If the shire doesn’t want it then Bendigo will walk and that will be the end of banking in this whole region,” Omeo businessman Rod O’Connell said.