In Australia, over 200 bank branches closed last fiscal year. More than 6000 ATMs were eliminated in the past five years as digital payments increased.
According to new Canstar data, while bank branch closures outside major cities have slowed, 52 branches will still close in the fiscal year 2024, down from 122 the year before.
In total, 230 branches were closed across the country.
The number of ATMs also continued to decline, with 217 machines removed over the last financial year, mostly in major cities, which saw the biggest loss of 51 ATMs.
Despite the slowdown, Canstar’s data insights director pointed out that this is no comfort for regional customers who rely on physical banking services. For many, closures in rural areas force long journeys to the nearest bank branch or ATM. The process is significantly affecting access.
Three major banks—CBA, Westpac, and ANZ—paused their plans to shut down branches. This helped reduce the number of regional branch closures.
Australia Post’s Bank@Post remains an important service provider. The bank is providing basic banking activities such as deposits and withdrawals at approximately 3400 locations for participating banks.
Despite the fact that digital payments are becoming increasingly popular, many Australians continue to utilize cash. Over the last year, Australians withdrew $107 billion from ATMs around the country.
Which indicates that cash remains a significant factor in transactions.
As banking moves to digital platforms, it is still difficult to ensure that all Australians, particularly those in remote locations, have access.
