Senate Inquiry: First public hearing into rural bank closures starts

Westpac and NAB have come under fire for a lack of transparency in communicating regional branch closures at a public hearing in Sale today.

Big banks Westpac and NAB have come under fire for a lack of transparency in communicating regional bank closures, at the first public hearing of the Senate inquiry into a spate of them shutting since last year.

Westpac recently announced the closure of a branch in Sale, where the first hearing was held on Thursday.

The closure was put on hold when the inquiry was launched last month, with Westpac executives admitting that notifying the local government area or business groups that a closure was taking place was not a requirement.

Westpac’s chief customer engagement officer Ross Miller told the inquiry: “We don’t engage with those stakeholders before an announcement is made.

“(In) hindsight we will be changing our philosophy.”

Westpac met with Wellington Shire face-to-face for the first time before the hearing started.

NAB executive Krissie Jones told the hearing her bank’s closure protocol involved informing the local mayor of a closure on the same day customers found out.

Local MPs were told in the days beforehand.

Senator Matt Canavan is chairing the Senate inquiry in regional banking closures. Picture: Scott Radford-Chisholm

Senate inquiry chairman Matt Canavan said the banks’ approach was at odds with submissions made to a regional banking task force that concluded last year.

“(It says) closures are made after careful consideration and consultation,” Senator Canavan said.

“What does consultation mean if you are not speaking to anyone locally before a decision is made to close?

“Is the impact assessment (of a closure) a desktop approach, you just look at stats and data?”

Wellington Shire chief executive David Morcom said he was bemused to read a statement in the local newspaper from Westpac that consultation had taken place with them about the planned Sale closure.

Impact closure statements by banks were a requirement of the regional banking task force, but the Finance Sector Union’s Wendy Streets said in many instances it was a “tick and flick” exercise.

NAB is closing its Maffra branch, but retaining a presence in Sale. Picture: George Salpigtidis

Sale Business and Tourism president Julian McIvor said Westpac’s closure would be a “kick in the guts” and a loss of faith in regional areas.

Westpac and NAB said closures were being driven by more customers taking up digital services and arrangements with Australia Post for ongoing face-to-face needs were working.

NAB is closing its Maffra branch, but bolstering its presence in Sale.

But East Gippsland Shire chief executive Anthony Basfordsaid there were many “black and grey spots” with poor internet coverage that made accessing virtual banking harder.

“It is very intermittent,” he said.

“One of the challenges we have is that the power supply often drops out.

“Swifts Creek, a week and a half ago, was without power for 48 hours, Mallacoota has back up power, but previously pretty much every time you heard the generators kick in, the community would lose power.

“That power supply is a critical part if you are making the transition to an online (banking) environment.”