Over the past few years, Australia’s banks have been closing hundreds of branches and removing thousands of ATMs as they transition to digital payments.
According to a new study by Canstar, the number of closures outside of major cities decreased in the 2024 financial year.
The number of bank branch closures in Australia has decreased to 230, from over 250, outside of major cities.
Sally Tindall, the data insights director of Canstar, noted that the slower pace of these closures is not a good thing for regional customers.
The increasing number of bank branch closures is attributed to the shift toward digital payments and banking.
However, the closing of an ATM in a shopping center is different from a branch in an outback region of Australia, where people have to take the car to reach their new branch.
The three major banks in the country, namely ANZ, Commonwealth Bank of Australia, and Westpac, have temporarily suspended the closures.
In the financial year that ended in June 2019, the number of ATMs across the country decreased by over 200. The biggest drop was in major cities, which experienced a loss of over 50 machines.
The country’s largest postal service, Australia Post, still operates 3428 Bank@Post locations.
Through the Bank@Post service, customers can conduct various transactions such as depositing and withdrawing money at participating outlets of Australia Post.
A Canstar analysis revealed that some Australians still rely on cash as their primary method of payment. Tindall noted that during the 12 months ended in June, Australians withdrew over $107 billion from ATMs.
As the banking and payments systems of the country continue to evolve, regulators, the banks, and the government will need to work together to develop solutions.