In a surprising turn of events, one of Australia’s major banks has announced the opening of three new regional branches in New South Wales, Victoria, and Tasmania.
This move comes after a wave of criticism over the bank’s previous decision to embrace a cashless model, which led to the closure of numerous branches and the removal of ATMs, leaving many regional communities in a lurch.
The closures, part of a broader trend towards digital banking, sparked outrage among residents who relied on in-person services.
A poll revealed that a staggering 92 per cent of readers were concerned about the rate of bank branch closures, and 71 per cent had been directly affected by such closures.
Westpac CEO Anthony Miller has emphasised the importance of regional Australia, stating, ‘It’s home to a third of the population and contributes 30 per cent to GDP.’
‘We’re investing in the regions because we want to support the hardworking Australians living outside our capital cities.’
The new Service Centres, set to be established in Moree (NSW), Leongatha (VIC), and Smithton (TAS), are a response to the backlash and a recognition of the critical role these areas play in the nation’s economy.
The Moree branch, a community staple for nearly 150 years, was closed in 2023, along with the town’s ATM, causing an uproar among the town’s 7,000 residents.
‘I speak with families who had members who joined Westpac the week they opened in 1876,’ said former Parkes federal member Mark Coulton.
The closures were a logistical inconvenience and a blow to the community spirit, with long-term customers feeling disregarded and undervalued.
The absence of community consultation and the perceived contempt for customer loyalty led to widespread dissatisfaction.
This was also the situation in Leongatha and Smithton, where residents were forced to rely on alternative services like Australia Post for their banking needs.
This led to Julia Angrisano, national secretary of the Finance Sector Union, calling the move a ‘shameful behaviour’.
She added that the move ‘pushes customers onto the scrap heap when a branch fails to meet its targets for new sales of banking products and a continuing boost to profits.’
The departure of other major banks compounded the issue, leaving locals without a single ATM and feeling abandoned by the financial institutions they had trusted for years.
However, Westpac’s decision to open new Service Centres is a step towards mending fences with these communities.
These centres will offer face-to-face support for retail and business customers, cash access, and assistance with digital banking services.
They will also provide services related to identity verification, personal and business lending, and fraud and scam support.
Miller explained, ‘While most customers prefer to bank online, this new model will allow us to improve the way we help personal, business and agri customers.’
‘This includes tailored help for regional business and agribusiness customers looking to start or grow their business, and personal bankers available to assist with daily cash and banking enquiries.’
The design of each Service Centre will be adapted to meet the specific needs of the local community, ensuring that the services provided are relevant and beneficial.
The Moree centre is scheduled to open later this year, while the Leongatha and Smithton centres are expected to open in early 2026.
This commitment is further reinforced by a moratorium signed by the Big Four banks, promising that all currently open regional branches will remain operational until at least 2027.
Despite these positive developments, the overall trend in Australia has seen a significant reduction in the number of bank branches and ATMs.
Canstar research indicates that there were 230 fewer bank branches in the 2023-24 financial year, with a total of 1,615 closures over the past five years. Westpac led the pack in both branch closures and ATM removals.
While the reduction in regional branch closures has halved compared to the previous year, the impact on those who depend on these services is still profound.
Sally Tindall, Canstar data insights director, remarked, ‘If you ask anyone who was relying on those 52 branches to do their day-to-day banking, they won’t exactly be chalking this up as a win.’
Westpac’s move to reopen branches in regional areas is a significant acknowledgment of the unique challenges faced by these communities.
It reminds us that while digital banking may be the future, the present still requires a balance between convenience and accessibility, especially for those in regional Australia.
We understand the importance of accessible banking services, particularly for Australians over 50 who may prefer in-person banking or require additional support with digital services.
In the comments below, we encourage our readers to share their experiences with bank branch closures or reopenings.
Also read: Is cash still king? A go-to spot backtracks on cashless policy after customer outrage
Westpac changed its name to reflect its presence in the Western Pacific, then closed its branches in Pacific Islands countries such as Solomon Islands.