Aussie towns are being hit hard by the disappearance of bank branches.
In the last five years, more than 1600 bank branches have closed in Australia, with hundreds more closing in the past year. This is due to financial institutions increasingly turning to online systems.
There are a number of reasons for this trend. Firstly, online banking is more efficient and cost-effective for banks. It requires less staff and overhead costs, and customers can bank from anywhere at any time.
Secondly, customers are increasingly comfortable banking online. More and more people are conducting their banking transactions online, and this trend is only set to continue.
Finally, the growth of digital banking alternatives, such as mobile apps and online-only banks, is putting pressure on traditional banks to adopt similar technologies.
The result of all this is that traditional bank branches are becoming increasingly obsolete. This is bad news for bank staff and customers who rely on them, but it is inevitable given the current trends.
Over 309 branches have closed in the past year, with Westpac planning to close even more in Campbelltown, Moree, Port Douglas, Gisbourne, and other locations in the coming months.
The number of ATMs in Australian cities and towns has decreased by more than half in the last six years.
The number of ATMs across Australia has decreased from 13,814 in 2017 to 6,412.
In remote Australia, the number of branches was slashed by nearly a third, leaving only 102 branches in those regions.
This trend is likely to continue, as the big banks continue to focus on their more profitable urban customers.
It’s time for the federal government to step in and ensure that all Australians have access to the banking services they need.
If something isn’t done to stop the decline of bank branches, the consequences could be devastating. Small businesses will close, jobs will be lost and communities will suffer. We can’t let that happen.