Access to banking services in regional areas is back in the spotlight amid a wave of mass lay-offs in the banking sector.
The National Party of Australia has urged banking chiefs to keep regional services open and stop branch closures amid an ongoing campaign to maintain face-to-face services in rural and remote areas.
Shadow assistant treasurer and shadow minister for financial services Pat Conaghan confirmed he had met with major banks serving regional areas in recent weeks and claimed he had “thrown down the gauntlet” on regional banking.
On 15 August, the Nationals wrote to the Treasurer and Assistant Treasurer calling for an urgent response to the Senate inquiry on regional banking.
The final report on the Senate inquiry, which was published in May last year and arose after numerous regional bank closures, focused on solutions to maintain access to banking services in rural areas.
Conaghan called for the moratorium on branch closures to be extended beyond just the majors and said: “If a community is about to lose its last branch or in-person banking point, the shutters should not come down.
“Extend the moratorium. It’s the least the Government could do while they sit on their hands about this issue.”
A levy to keep rural bank branches open was floated earlier this year by Commonwealth Bank of Australia (CBA) CEO Matt Comyn as an option to help regional households and businesses keep access to physical banking services in their communities.
“Enough is enough on bank closures,” Conaghan said. “I’ve told the bank chiefs directly: come to the table with a credible plan to maintain face-to-face services and access to cash in the regions.
“Banks have no problem extracting profits from the regions. It’s time they reinvest – in people, in branches, in ATMs and cash services.”
Conaghan stressed that any universal banking obligation must cover more than country towns.
“This isn’t just about the bush. Outer-suburban communities are also losing branches, which means some of the most vulnerable Australians and small businesses are being left without fair access to services,” Conaghan said.
Adelaide-based broker Nic Wilson, head of regional and agribusiness at Think Mortgage, said the wave of regional bank closures, combined with reduced hours at remaining branches, has made in-person banking harder than ever for rural clients
“Many of our clients are finding it harder than ever to get personal, in-person service from banks,” he said.
“Branches have either shut completely or cut back their hours, and many relationship managers who used to be based in regional areas are now covering huge territories from centralised hubs.”
Wilson said commercial and agricultural finance typically involves more complex needs that can’t always be addressed through apps or call centres.
“Face‑to‑face services remain essential, particularly for people and small businesses in regional areas, where digital alternatives may not always be accessible or meet their needs," he continued.
“Regional borrowers are often forced to drive further and further just to speak with someone in person. That travel time takes them away from running their businesses. It can have a real impact on productivity and profitability.”
The broker said that while there was a time when bank managers and relationship managers were embedded in regional towns and easily accessible, nowadays it is more common for them to cover large areas from central locations.
"In South Australia, for instance, a manager might be based in Adelaide but support clients across the Fleurieu and down to the South East," he said, highlighting that even clients who get their lending needs met through brokers can be affected, particularly when they need to resolve day-to-day banking issues or restructure existing facilities.
“Having a broker is just one part of the puzzle,” Wilson said. “There’s still a need for clients to be able to access local bank staff for ongoing matters, and that’s getting harder to do.”
“Regional borrowers face the same risks and decisions as those in the cities, but with fewer options and longer wait times,” he said.
“Banks need to find ways to maintain meaningful access to their regional clients, not just digitally, but in person, where it counts.”
Calls to protect access to physical banking services in regional areas come after a week of mass lay-offs across the banking sector.
On Tuesday (9 September), banking giant Australia and New Zealand Bank (ANZ) announced it plans to axe the jobs of 3,500 employees and 1,000 contractors over the next 12 months.
A day later, National Australia Bank (NAB) announced it would make changes to its technology and enterprise operations division, including permanently cutting 410 jobs.
Similarly, the Commonwealth Bank of Australia (CBA) had announced a plan to slash at least 45 customer service jobs and replace them with artificial intelligence (AI). However, as reported by The Adviser sister brand Cyber Daily, this was backtracked following significant backlash.
[Related: FSU slams major banks for job losses]
