Banks axe 155 branches, rate of closures slowing over past financial year

Bank branches are becoming increasingly difficult to find, with the latest figures showing 155 branches were closed in the last financial year.

Data from the banking watchdog shows 1,564 bank branches have closed in the last five years; The Commonwealth Bank is leading this cull in the 12 months to the end of June.

“As the pace of bank branches closing their doors continues to slow, it is hardly comforting to see local branches closing stores,” Canstar data director Sally Tindall said.

“At the end of the day, the closure of 155 bank branches across the country is still significant.

“That said, it is encouraging to see that the pace of regional branch closures has slowed in the past year.”

While the majority of branch closures last year occurred in major cities, 24 regional branches also closed. Five remote or ‘too remote’ branches were closed; This marks a decrease from eight the previous year.

The closures were spread fairly evenly across the country. Overall, 4 per cent of branches were closed in NSW, Victoria, South Australia, NT and ACT. WA lost 13 per cent of its branches.

The data stands at the end of the last financial year in which Tasmania did not lose any branches. Bendigo Bank has announced a wave of regional closures in Victoria and Tasmania in the first week of the new financial year.

In the last fiscal year, 155 bank branches were closed and 333 bank ATMs were also closed.

Commonwealth, NAB and Westpac have agreements with Australia Post where customers can deposit, receive cash or make balance inquiries at post offices; 62 of these post office services (2 percent) closed last year.

Commonwealth Bank, Australia’s most valuable company, closed 49 (7 percent) of its branches last year. ANZ also closed 7 per cent of its branches and 21 outlets. Westpac closed 25 branches (5 per cent). NAB closed only three branches.

ANZ has led the way in closures over the past five years, halving its network. Westpac closed 46 per cent of its branches in five years, while Commonwealth and NAB closed around a third.

“The big four banks did the right thing by committing in February to keep their regional branches open until at least mid-2027, but there is still a big question mark about what the long-term future of these branches will look like,” Ms Tindall said.

“As banking becomes increasingly digital, there is no doubt that more customers are happy to tap, click, transfer and apply online rather than queuing at the branch.

“The challenge for banks is to ensure that no one is left behind in this transition.

“Bank@Post continues to play a vital role in filling the gaps left by branch and ATM closures.

“For some small towns, the local post office may be the only place people can still deposit cash, withdraw money or pay their bills.”