Another major Aussie bank closes branches amidst shift to online banking

In a significant move signalling the ongoing shift towards digital banking, three more Commonwealth Bank branches are set to close across Australia by March 1, following a recent review citing declining customer demand.

The affected branches, located in Coogee (NSW), Coolangatta (Queensland), and Adelaide’s Rundle Mall (South Australia), will be permanently closed, according to a statement from the Commonwealth Bank.

The decision, deemed “difficult,” is based on progressive declines in customer transactions at these locations.

“We regularly review our services across Australia to help inform decisions on where to open, renovate or upgrade branches, or in some instances where to close branches,” the Commonwealth Bank told 7NEWS.com.au.

“After a recent review, we made the difficult decision to permanently close our Rundle Mall Adelaide, Coolangatta and Coogee branches.

“Staff will be available to provide one-on-assistance until Friday, March 1, 2024 to help equip and educate customers with alternative banking options.

“We’re proud to provide customers with many different ways to access banking services — via our branches, ATMs, mobile and premier bankers, phone banking, messaging, online or via the CommBank app, as well as Bank@Post.”

At the Rundle Mall branch in Adelaide, transactions witnessed a 47 per cent decline over the past five years. Similarly, Coogee experienced a 52 per cent drop, while Coolangatta saw a 29 per cent reduction in transactions during the same period.

The news comes after another major Australian bank announced a wave of branch closures across the country.

NAB is poised to shutter numerous branches in major cities and regional areas across multiple states, claiming that customers increasingly prefer the convenience of online banking.

Approximately 36 branches in NSW, the ACT, Queensland, Victoria, and Western Australia are marked for closure. The decision, as outlined on the NAB website, attributes these closures to the growing trend of customers opting for online, phone, or video banking.

“With more customers choosing to bank online, over the phone, or by video, and because fewer customers are using branches to do their banking, we’ve made the difficult decision to close some of our branches,” the statement read.

“We want to make sure that changes to our branch locations are as smooth as possible for you. You can find information below in our fact sheets, including some of the main reasons why we made the decision to close, as well as other ways you can continue to bank with us.”

This wave of bank closures, particularly in regional areas, has raised concerns about the impact on residents who heavily depend on in-person banking services.

FSU National Secretary Julia Angrisano has previously expressed concerns over such moves, stating that “closing these banks is a betrayal of the community and staff in these areas and will make banking harder for older people, businesses and anyone who needs to speak to a banker face to face.”

“These announcements could not come at a worse time with the holiday season around the corner and cost of living pressures already taking a significant toll on our members,” Angrisano said.

“It is a disgrace that NAB continues to aggressively pursue its branch closure strategy without genuine community engagement or employee consultation.

“After delivering an annual profit of $7.7 billion, NAB is still using branch closures to cut costs and boost profits. The bank could easily invest in these communities who rely on branches to meet their banking needs instead of shut them down.”