Broker focus underlies Bankwest branch closures

Bankwest will also adjust the opening hours of 29 Western Australian regional branches, which will move to two and four days per week, it explained.

According to the bank, this is due to a continued shift in customer preferences across Western Australia and nationwide toward digital banking options.

Bankwest regional branch colleagues will continue to support customers through conversations in Bankwest’s app, online banking and Western Australia-based national contact centre during times their branches are not open, it explained.

Bankwest executive general manager Jason Chan said Bankwest needed to make a clear choice to invest in areas where customers preferred to engage with Bankwest.

“Customers increasingly expect us to be simpler and easier to bank with via their brokers and our digital and contact centre channels, so it’s critical we meet these expectations,” he said.

“We’re exploring how we continue to get the balance right between supporting those customers who want to use branches while delivering the digital services customers expect of us.”

WA regional branch time changes

Bankwest country hub branches in Geraldton, Kalgoorlie, Albany and Bunbury will remain open five days per week, it confirmed.

Western Australia regional branch transactions have declined by 33 per cent on average over the past five years, Bankwest explained.

In contrast, customer app usage has risen by 31 per cent in the past two years, “…generating 40,000 in-app customer conversations per month and contributing to 1.5 million contact centre customer conversations per year.”

Mr Chan said Bankwest needed to make a clear choice to invest in areas where customers preferred to engage with Bankwest.

“We’ll continue to be a leading retail bank in our home state, a Perth-based national business that WA can be proud of and a major employer that offers new career opportunities for West Australians in the future,” Mr Chan said.

“On the east coast, Bankwest is in a strong position to grow as a homeowner-focused digital bank due to our distinct brand, first-class broker services and digital investment plans.”

Physical banking options still needed

Bankwest general manager, personal banking Scott Spittles said the bank was contacting customers about the changes and upskilling Western Australian branch colleagues so they could continue to serve customers.

“We’re writing to branch customers to inform them of the changes, support them in using digital services and help customers access alternative physical banking options where needed,” he said.

“Thanks to Bankwest’s partnership with Australia Post, our customers can access more than 3,500 Bank@Post locations in communities across Australia for many of their day-to-day banking needs.”

Mr Spittles said Bankwest’s “Fluid” workforce initiative, launched during the pandemic, was upskilling colleagues to meet changing customer demand across website, in-app and phone channels.

“We want our talented colleagues, who have incredible customer service skills and experience, to continue to grow their careers with us while living and working in the communities they love,” he said.

Bankwest on CBA’s books

Bankwest is a division of the product issuer, Commonwealth Bank of Australia (CBA), whose chief executive Matt Comyn only last month reported a lift in home lending and acknowledged the “important partnership” of the broker channel.

CBA results for the financial year ended 30 June 2022 reported home lending grew by 7.4 per cent and its home lending book was up $36.4 billion, while business lending grew by 13.6 per cent, to $15.4 billion.

Its mortgage book totalled $556 billion by the end of June 2022, up from $516 billion, of which 71 per cent were owner-occupied loans, 28 per cent were investment home loans and 2 per cent were lines of credit. 

New loans written by brokers increased to 46 per cent as at June 2022 (up from 44 per cent the year prior); however, it dropped from the 49 per cent recorded in the six months to December.

Overall, brokers continue to be responsible for around 46 per cent of all mortgages on CBA’s books (including Bankwest). 

[Related: CBA CEO acknowledges brokers following mortgage growth]