Concerns grow as more Aussie banks close branches, leaving customers in limbo

In response to the escalating shift towards digital banking preferences, several financial institutions across Australia are set to close branches this year, marking a significant change in the landscape of traditional banking services.

Commonwealth Bank (CBA) has announced the closures of their Coogee (NSW), Coolangatta (Queensland), and Adelaide’s Rundle Mall (South Australia) branches.

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

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

NAB is also 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.

Ongoing bank closures, particularly in regional areas, are perceived as a significant challenge for residents in these regions who heavily depend on in-person banking services, a sentiment shared by the Finance Sector Union (FSU) which raised concerns about the impact of these closures on both employees and customers.

“What a kick in the guts for our members working at these branches at the start of the year,” said FSU National Secretary Julia Angrisano.

Angrisano highlighted the impact on customers in densely populated areas, such as Rundle Mall in Adelaide, where 800,000 people pass through weekly.

“This is the busiest shopping precinct in Adelaide but CBA customers and businesses are being told to find a branch elsewhere in the city if they need to visit a bank branch,” Angrisano said.

Coogee, nestled in Sydney’s Eastern Suburbs, and Coolangatta, a popular tourist destination on the Gold Coast, face closures that will undoubtedly affect customers in these regions. The move raises questions about the necessity of maintaining a physical banking presence, particularly in areas with diverse demographics and specific needs.

“These closures should not be happening and it only demonstrates CBA’s continual desertion of its ‘bricks and mortar’ branch network,” Angrisano stressed.

“The CBA claims branches are shutting because of a reduction in over the counter transactions but the reality is they are forcing staff to move customers to digital banking by directing them to a computer terminal in the branch.”