October 16th 2024.
Over the past financial year, Australia has seen a significant decline in the number of bank branches, with around 200 closures. This trend has been ongoing for the past five years, with over 6000 ATMs being scrapped as digital payments become increasingly popular. According to recent research from Canstar, the pace of bank closures outside of major cities has slowed down, with only 52 branches shutting down compared to 122 in the previous year. However, this still brings the total number of closures in Australia to 230.
Sally Tindall, Canstar's data insights director, believes that this decrease in bank closures is not necessarily a positive development for those who rely on traditional banking methods in regional areas. She notes that while the move towards digital banking may be inevitable, it can have a significant impact on those who do not have easy access to alternative banking options. Tindall explains, "Bank branches are disappearing as more and more banking and payments are done online, but for individuals in remote areas, the closure of a branch or ATM can mean having to travel long distances just to access basic banking services."
The slowing of regional bank closures can be partly attributed to the temporary suspension of closures by three of the four major banks - CBA, Westpac, and ANZ. However, this does not change the fact that digital banking is becoming the norm for many Australians. Even the number of ATMs has decreased by 217 in the past financial year, with major cities seeing the largest decline of 51 machines. Despite this, Australia Post's Bank@Post service remains a crucial resource for individuals across the country, with 3428 points of presence. This service allows customers to carry out basic transactions such as deposits and withdrawals at participating Australia Post locations, as long as their bank has an agreement with the corporation.
Despite the push towards digital payments, the Canstar analysis also reveals that many Australians still rely on cash for their transactions. In fact, in the past 12 months alone, Australians have withdrawn a staggering $107 billion in cash. Tindall acknowledges this and emphasizes the need for collaboration between banks, the government, and regulators as the landscape of payments and banking continues to evolve. She says, "It's clear that cash still plays a significant role in our society, and as our payment and banking systems evolve, it's important for all parties to work together to find solutions that work for everyone."
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