Bank branches could return to forgotten corners of regional and rural Australia under an industry plan to save face-to-face services.

The industry’s peak body wants the competition watchdog’s blessing to trial banking hubs, basically multi-bank branches, in country Australia.

The plan includes a funding model to share costs of supporting bricks-and-mortar outlets and other infrastructure across participating banks.

Some customers still prefer face-to-face banking despite plunging transaction numbers, Australian Banking Association chief executive and former federal Liberal finance minister Simon Birmingham said.

“Everyone’s banking needs are different,” Mr Birmingham said.

“This is a way of ensuring regional customers can bank in the ways that suit them, whether that be online, on a phone or in-person.”

In-branch interactions in regional Australia have tumbled 63 per cent since 2019, while cash payments account for 15 per cent of total transactions, down from 70 per cent in 2007, industry and government figures show.

The plan, which has been submitted to the Australian Competition and Consumer Commission for approval, would include developing regional service commitments, a trial of up to 10 banking hubs and the joint funding model to back it.

Hub models already exist in the United Kingdom and New Zealand.

“Branches will continue to be an option for regional customers,” Mr Birmingham said.

“However, this hub trial explores new ways to deliver face-to-face banking services in communities that currently don’t have a branch.”

Nearly 850 banks have closed across regional, rural and remote Australia between mid-2017 and mid-2025, according to prudential regulator data.

The wave of closures has left an estimated 600 towns without a bank.

The current figure, and the impact of a federally imposed moratorium on regional branch closures, won’t be known until 2026 financial year data is released later in October.

Last week, Commonwealth Bank extended its moratorium on regional branch closures until the end of the decade. Westpac gave a similar guarantee in November last year.

National Australia Bank and ANZ remain committed to an earlier industry-wide closure pause until mid-2027, with ANZ boss Nuno Matos previously expressing his support for banking hubs.

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