By TOM HAYES
NO regional bank branches will close before July 2027, after the big four banks struck a deal with the federal government.
NAB agreed to a moratorium on closures until July 31, 2027, while Commonwealth Bank and Westpac will extend their agreements to match. ANZ already had an agreement in place to stop the closures of branches as part of the takeover of Suncorp last year.
According to NAB, it has the strongest regional presence of any major bank in Australia, with 48 per cent of its branch network dedicated to regional communities (437 branches, 210 in regional and rural areas). NAB also invested $41 million across its branches over the last 12 months.
“While digital banking continues to evolve, we firmly believe that face-to-face banking services remain essential for many Australians,” NAB Group Executive for Personal Banking, Ana Marinkovic said.
“Our recent move to Saturday branch openings (in November 2024) demonstrates our conviction that while digital is foundational, a human touch is just as important in the moments that matter for our customers.”
Following the agreement, Commonwealth Bank announced it will invest $100 million into upgrades for its branches and ATM fleet.
About 36 per cent of regional bank branches have closed since 2017, as data from the Australia Prudential Regulatory Authority found nearly 800 bank branch closures across the country.
Furthermore, over 200 ATMs from the big four banks were removed in the past 12 months alone, a small portion of the more than 8000 bank-owned ATMs removed since 2017.
Federal Treasurer Jim Chalmers announced that the deal ensured face-to-face banking services remained for people who need them.
“Banks have a responsibility to regional Australia, and we’re making sure that they are meeting their responsibilities,” he said.
“We know that if we want a strong national economy, then regional Australia needs to be a big part of the story, and that means making sure that banking services are available to the businesses and workers and people and communities of regional Australia.
“This is all about making sure that banks stay open in the bush.”
The deal includes increased funding for Bank@Post operations at Australia Post branches.
This comes after Australia Post ramped up cash services when bank branches began to leave regional areas.
The final report also recommended an expansion of the Bank@Post service.
Australia Post Chief Executive and Managing Director, Paul Graham was pleased with the announcement.
“The new agreements will also help maintain the sustainability of thousands of licenced post offices, many of which are small business run by families who play an essential role in servicing their local communities,” he said.
Mr Graham also mentioned that the arrangements would ensure more than 3000 post offices could continue to provide “essential banking services” to communities with no other options.
Commonwealth Bank, NAB, and Westpac have reached new agreements with Australia Post’s banking service. Macquarie Bank and HSBC will begin negotiations to join the agreement, while ANZ – which was originally a part of the service until 2019 – agreed to terms to re-sign.
“We are pleased negotiations with Australia Post are at an advanced stage. Under terms, ANZ customers would be able to access Bank@Post services from (October 1, 2025),” ANZ Managing Director, Retail Banking, Katherine Bray said.
The Bank@Post service allows customers to undertake basic banking such as withdrawing cash at post offices.
Australian Banking Association Chief Executive, Anna Bligh hopes that the moratorium will give the sector time to find a long-term resolution for regional communities.
“I’m very confident that the moratorium will effectively give us that breathing space to look at the things that Australia is good at, finding innovative ways to service very remote locations,” she said.
“As we see more and more Australians jump online to do their banking, we are going to see a continued digital transformation.
“Our job collectively is to make sure we don’t leave any Australian behind as that transformation accelerates, and that’s what today’s announcements will do,” she announced last week.
Vox Pop: Do you prefer physical or internet banking, and why?
“I prefer online banking for convenience, especially for transferring and checking balances. With less need to carry cash I don’t really visit a physical bank anymore. With more branches closing and since they’re less available, I have become even more reliant on digital banking.”
– Emily, Churchill
“Banks are shutting down all the time and now I’d have to go to different towns just to go to the bank you use. Online is much easier in this day and age.”
– Zac, Morwell
“I prefer online banking as it’s convenient and there’s not too many of my banks around.”
– Gemma, Churchill
“I don’t (use physical banks) because my branch had closed down. I’m still with ANZ, the reason I joined ANZ is because they had a branch in Trafalgar.”
– Tony, Trafalgar
“My bank only provides online banking, although since I don’t use cash I would see no need to go into a physical bank. Also, my bank provides incentives when banking online which makes it more attractive.”
– Karl, Traralgon
