Bankwest invests in the broker channel amid branch closures

Bankwest’s decision to close three branches in Perth comes following its decision to axe all branches outside Western Australia as it redirects investment to digital banking and the broker channel, aligning with the changing landscape of customer banking behavior.

“I understand these changes will cause some inconvenience, but we are seeing more branches become increasingly unsustainable to operate as customer banking preferences shift to digital options,” Bankwest’s general manager of personal banking Scott Spittles said.

“Customer demand for digital banking services continues to grow, with digital transactions accounting for more than 90 per cent of all transactions, while in-branch services have declined by almost half in the past three years.

“We expect to operate fewer branches as customers increasingly choose digital banking services but we’re intent on retaining our brilliant branch colleagues.”

The forthcoming branch closures, slated for November, include Baldivis, South Perth, and Osborne Park. These actions followed the earlier announcement of the Subiaco branch closure in July 2023.

The bank has assured customers that they will receive advance notification about the closures and will be provided with detailed information about alternative banking options, encompassing digital services and in-person assistance through Bank@Post, to ensure uninterrupted access to banking services.

Bankwest’s collaboration with Bank@Post is aimed at accommodating customers who prefer in-person banking interactions.

This partnership allowed patrons to conduct a wide array of everyday banking transactions at participating Australia Post offices.

Bank branch closures amid customer preferences changing

The move came as no surprise as more lenders turn to investing in digital bank as customers move online.

Recent data from the Australian Prudential Regulation Authority (APRA) has revealed more than 300 bank branches were axed nationwide in the 2022 financial year, providing opportunities for the third-party channel.

The data revealed 309 bank branches were closed nationally in the last financial year alone, with 96 branches closed in NSW, 57 closed in Queensland, and 88 closed in Victoria.

Over the past five years, the number of banks available has reduced from 5,694 as at June 2017, to 4,014 as at June 2022, marking 1,680 closures.

[Related: Broker focus underlies Bankwest branch closures]