An Australian bank has announced that it will be closing 18 branches across the country, resulting in nearly 100 job losses.
The move has been met with criticism, with some calling it a “devastating abandonment” of customers. But is the rise of digital banking really to blame?
What’s Happening?
People First Bank, a customer-owned bank, will be permanently closing 11 Heritage Bank branches and 7 People’s Choice Credit Union branches from April 4.
The bank claims that changing customer needs and a preference for digital banking are the reasons behind the “difficult decision”.
Chief customer officer Maria-Ann Camilleri said that increasingly, customers are choosing to use ATMs, internet banking, and the bank’s app for their day-to-day banking, with branch use now accounting for less than 1% of all transactions.
Which Branches Are Closing?
The list of closing branches includes:
- 11 Heritage Bank branches in Queensland: Beenleigh, Brookside, Capalaba, Indooroopilly, Noosa Civic, Nambour, Mermaid Waters, Nerang, Strathpine, The Pines Elanora, and Victoria Point
- 7 People’s Choice Credit Union branches across Queensland, South Australia, Northern Territory, and Victoria: Darwin, Maryvale, Warrnambool, Gawler, Victor Harbor, Seaford, and Northpark
The Impact on Communities
The Finance Sector Union has slammed the closures, calling them an “attack on regional communities”.
National assistant secretary Jason Hall said that nearly 100 jobs would be lost as a result of the closures, with workers expressing concerns about their future.
Hall also criticized the bank’s decision, saying that it was a “devastating abandonment” of the 700,000 members the bank claims to be dedicated to.
What’s Next for Affected Customers?
The bank has said that it will support everyone affected by the closures with care and understanding.
For customers who use the affected branches, the bank has a range of options available, including alternative branches, ATMs, and Australia Post banking services.
Camilleri said that the closures would have “little to no impact” for the “overwhelming majority” of customers who bank digitally.
The Rise of Digital Banking
The closures come weeks after Bank of Queensland confirmed it would close 14 branches across Queensland, Victoria, New South Wales, and Western Australia.
A report from the Australian Banking Association found that face-to-face branch interactions had dropped by 47% and phone calls by 26% between 2019 and 2023.
Customers are shifting to digital banking channels at “unprecedented rates”, with 99.1% of interactions now made online or via apps rather than in person.
Are you a customer impacted by the closures? Share your thoughts in the comments below.