Bendigo Bank warns Korumburra: ‘Use or lose’ your branch

Don’t take your bank branch for granted, rural communities are being warned by the nation’s only community bank operator. A growing number are closing on a “case-by-case” basis.

Local traders outside the soon-to-close Bendigo Bank branch at Korumburra (from left), Jennie Keerie, Milpara Community House; Rick Arestia, Burra Barber; Phil Dempster, Burra Brewery; Shirley Arestia, Korumburra Business Association secretary; Kelly Hughes, Burra Garden Supplies; Kerry Martin, Burra Newsagency; and Maria Condalucci, Kelly’s Bakery.

The Bendigo Bank has issued a “use it or lose it” ultimatum to rural communities that once saw the bank as its financial saviour.

The bank, the only one with a community-ownership model, has itself closed 27 branches in the past five years.

The latest closures across parts of Gippsland has drawn the ire of both residents and local businesses.

The Bendigo Bank branch in Korumburra was the only remaining bank in town, following the closure of several branches in recent years.

But following community outcry, the bank’s closure will be delayed for three months.

In the Latrobe Valley, the Morwell Bendigo branch has also been flagged for closure next month.

According to Bendigo Bank, as of June 30 2020 the number of branches under the Bendigo and Adelaide Bank Limited banner totalled 513, down on the 540 of June 2016.

But a spokesman said Bendigo Bank continued to “invest in areas where our customers demand a greater experience and our branches remain crucial to our community connection”.

Customers of the Korumburra branch were first alerted to the proposed shut down via text message earlier this month.

But the closure of the bank – slated for May 14 – has been delayed by three months, with community members urged to “support the bank with their banking business”.

“ … the branch will operate for an additional three months to allow the community to show its support for an ongoing physical banking presence,” the spokesman said.

Branch closures are made “on a case-by-case basis”, according to the spokesman.

The bank’s 2020 annual report showed full-year earnings declined 27.4 per cent year-on-year.

Korumburra Business Association president Noelene Cosson said there was now “confusion” in the community regarding the future of the bank.

“We are a stand-alone town. You don’t have to leave Korumburra to look after your weekly needs. I think it undermines the business community by not having a bank, it doesn’t encourage business to the area. We do accept banking has changed, but we’re not ready to be a bankless town,” Ms Cosson said.

“I fail to see why they can’t see this as a business opportunity, not a liability for them. It makes no sense.”