State MP Presents Motion to Stop ‘Relentless’ Banking Branch Closures

State MP Proposes Motion to Halt ‘Relentless’ Closure of Banking Branches

May 2, 2024 TruthUSA

Major banks have been steadily closing branches across Australia citing the popularity of online digital services.

New South Wales state MP Rachel Merton is calling for a halt to bank and ATM closures as regional customers continue to see local branches disappear.

The National Australia Bank (NAB) closed the Lithgow and Oberon bank branches and ATMs in Australia’s most populous state in the last week of April.

The NAB currently has 11 branches listed for closure on its website in New South Wales (NSW), Queensland, South Australia, and Victoria.

The Liberal Party Member of the Legislative Council (MLC) Ms. Merton—elected in 2023—put a private member’s motion for the government to limit any further bank closures.

“The big four banks have enjoyed a privileged position in the community through their banking licences provided by government,” Ms. Merton said on Facebook.

“It’s time they start being innovative and investigate further models of continuing to provide face-to-face banking services in our community.”

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The parliamentarian said in the six years to June 2023, bank branch numbers in NSW fell by 36 percent, while bank ATMs dropped 58 percent.

Speaking on 2GB radio, Ms. Merton said the push was “relentless across metropolitan and regional New South Wales.”

“We are continuing to see a relentless push, they’re slashing their branch networks, removing ATMs, and pushing people to a digital only banking world,” she said.

Ms. Merton said the situation was forcing customers to drive long distances just to get to a branch.

“There was a sign in the window of the bank branch last week saying customers, if you want to continue NAB face to face services, go to Katoomba, go to Bathurst, well that’s 45- close to an hour’s drive, that’s not possible for a lot of the customers in Lithgow today,” she said.

She suggested banks need to engage and listen and learn from customers.

“If we just look at Lithgow, it’s the impact on the elderly, it’s the disabled, it’s small business operators, it’s people from non-English speaking backgrounds that need that over the counter face to face banking service,” she said.

Fewer Customers Using Branches: NAB

The NAB confirmed it would be closing some branches across Australia in January 2024.

The bank has made the “difficult decision” to close some branches because fewer customers are using branches, NAB explained.

In NSW, the Lithgow branch closed on April 24, and the Oberon branch closed on April 23. In June, the Mullumbimby, Moruya, Yass, and Cessnock branches are set to close, according to fact sheets on the company’s website.

The fact sheets also outline the nearest alternative branches, and post offices offering Bank@Post.

In other states, the Pittsworth and Proserpine and Sarina branches in Queensland, and the Bright branch in Victoria are all slated for closure in April, according to the NAB website.

What’s Happened So Far?

The NAB is not the only bank moving towards a digital world. In March, Bank West announced it would become a digital only bank.

Bankwest announced in March it would be making the leap to becoming a digital only bank in 2024. This includes the closure of 45 Western Australia branches in October. A further 15 branches are being converted to Commonwealth bank branches.

The bank, which is a subsidiary of the Commonwealth Bank, explained that branches average only 30 over-the-counter transactions per day.

“It’s critical we prioritise investment for the majority of our customers who expect leading digital and broker banking services, and rarely use branches, but we have a clear focus on the needs of our regular branch users at this time,” Bankwest said at the time.

Investment bank Macquarie will also cease over-the-counter cash and cheque services at its offices starting from May 20.

“We’re removing our cash and cheque facilities in a phased approach,” Macquarie notes on its website.

On Nov. 1, Macquarie customers will no longer be able to deposit cash or cheques over the counter at NAB branches.

Commonwealth Bank has also closed more branches and ATMs in 2024, including Rundle Mall Adelaide, Coolangatta, and Coogee.

However, Westpac recently promised it would not close any more regional bank branches until at least 2027.

“We’ve heard the feedback from customers about the impact of branch closures in the bush and understand they face many challenges such as limited internet connectivity and increased travel times to their nearest branch,” the bank said.

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