CASTERTON is at the coalface of the latest Federal Government enquiry into the country’s banking sector, as one of a growing number of communities with no access to a ‘local’ bank branch.

A Senate committee has been appointed to investigate closures of bank branches in regional Australia, including the reasons given for closures, the economic and welfare impacts of bank closures on customers and regional communities, the effect of bank closures or the removal of face-to-face cash services on access to cash and the effectiveness of government banking statistics capturing and reporting regional service levels, including the Australian Prudential Regulation Authority's authorised deposit-taking institutions points of presence data.

Journalist Dale Webster has been investigating and writing about regional branch closures by ‘The Big 4’ for several years and Casterton featured in her award-winning report, 'Big Four' banks casting a dangerous shadow, in 2021.

In that report, she investigated five towns, including Casterton, which had lost all services owned by the major corporations – NAB, Commonwealth Bank, ANZ and Westpac.

“Until 2020, it was relatively uncommon for a town that once had all of the “big four” banks to have lost all branches but in the space of a year, that number has grown from five to 17, signalling a disturbing gathering of pace in corporate banking’s retreat from regional Australia,” Ms Webster wrote.

“Another 65 towns have lost three “big four” banks, 180 have lost two and towns that had just one of the “big four” banks make up the remainder (505).

“Some of these places still have one of the older minor bank brands represented, but these institutions have also been cutting their networks.”

Casterton fell victim to the ‘other institutions’ cull, shortly thereafter, when Bendigo Bank closed its Casterton agency.

Mid last month, the Federal Government conceded an enquiry was needed and appointed the investigative committee and Wannon MP, Dan Tehan, called on banks to heed the call of the Senate Committee and stop closing local banks until local councils, businesses and affected customers can submit their concerns to this Senate inquiry.

“In recent months there has been a concerning number of banks close in regional Australia, Liberal Senators have established a new Senate inquiry into the current extent of bank closures across regional Australia and what can be done to ensure that bank services are provided to all Australians,” Mr Tehan said.

“Banking is not just the sinew of commerce in regional communities but provides an essential service to those most vulnerable in the community.

“The closure of branches in Camperdown, Colac, Casterton, and Portland to name a few in recent years has put undue strain on businesses.

“We are seeing businesses in small communities being forced to close during the week just so they can drive to a town with a bank.

“When the average age of a farmer is 58, it is simply unreasonable for affected customers to be told to try online banking.

“While closures are typically a commercial decision, as a general principle, banks should look at the services they provide to country towns as part of their social licence and take into account loyalty shown by customers over many decades.”

Banks continue the cull

DESPITE the call for a halt to closures, the Financial Sector Union said banks, driven by greed, had largely ignored the request.

Just days after the enquiry was announced, the FSU said a Westpac ‘moratorium’ on branch closures was a “con” on its consumers, with the halt only applying to eight branches – Tully, Gatton; Cloncurry, Ingham, Denmark, Robinvale, Sale and Kingston – while Horsham was one of four locations to be closed, the following day.

FSU’s Julia Angrisano said Westpac only cared about profits and was intent on putting its greed before its obligation to provide banking services to the community.

“This Westpac moratorium is a fabrication and an attempt to deceive the community that it still cares about customers,” she said.

“If Westpac was serious about pausing its branch closures it would have included all 42 metropolitan and regional branches around Australia, which the bank has announced will either close, or co-locate with another bank branch, between now and June.”

“It really is offensive - Westpac is raking in billions of dollars in profits but it will leave thousands of customers in the regions without professional banking support from our members at a time when rising interest rates and cost of living pressures are hammering family budgets.”

The union also condemned National Australia Bank (NAB) for its failure to join its major competitors and ‘pause’ the continuing closure of regional bank branches during the enquiry.

NAB Executive for Retail Krissie Jones told the committee hearing in Sale, today that NAB would not pause its branch closure program with five branches announced for closure and more closures likely.

Asked if NAB would commit to not closing any further branches while the Senate Inquiry proceeded, Ms Jones said the bank would “continue to invest in regional Australia and some of that will also mean we will close some locations”.

“This is a pig-headed approach from NAB to refuse to understand that the big banks are on the nose with customers and businesses who want branch closures stopped,” Ms Angrisano said.

“The wider community is sick of branch closures which force them to travel long distances to conduct business face to face at a bank.

“While evidence from Westpac and the NAB relied heavily on their Bank@Post deals with Australia Post when shutting branches, we know that cash transactions are limited and other transactions like deceased estates, domestic violence and issuing of bank cheques can’t be handled at the Post Office.

“All Australians deserve to be able to access the full range of financial services regardless of where they live.

“The banks have been using branch closures to prop up their massive profits for years and it’s time they were forced to maintain customer service to local communities in both regional and metropolitan areas.”

The inquiry is expected to report back to the Senate by 1 December 2023.