Inquiry into bank closures

The Finance Sector Union has welcomed a Senate inquiry into regional bank closures.

Member for Wannon Dan Tehan has added his voice to the issue, calling on banks to heed the call of the Senate Committee and stop closing rural and regional banks until councils, businesses and affected customers could submit their concerns to the inquiry.

Mr Tehan said there had been a ‘concerning’ number of banks close in regional Australia in recent years. This includes Horsham’s Bank of Melbourne branch, which closed this month.

Referred to the Senate Rural and Regional Affairs and Transport, RRAT, References Committee, the inquiry will investigate the extent of bank closures in regional Australia – including the branch closure process, the reasons given for closures; the economic and welfare impacts of branch closures on customers and regional communities; and the effect of bank closures or the removal of face-to-face cash services or access to cash.

Horsham’s Bank of Melbourne branch was among 23 Westpac Banking Corporation branches – including Bank of Melbourne, Westpac, St George and Bank SA – announced in October would close, with a loss of 92 jobs. ‘More digitally active customers’ and ‘declining customer use of branches’ were cited as reasons for the decision.

The union’s national secretary Julia Angrisano said hundreds of banks had closed in recent years and people had lost their jobs. “We know that regional communities are doing it tough without access to banking services. The FSU will also encourage the Senate Committee to examine the impact branch closures have on the workers who have lost their jobs,” she said.

“The FSU has been at the forefront of the branch closure issue for years and has campaigned long and hard – not just for an effective and holistic government inquiry into bank branch closures, but as an advocate for the many groups of Australians who have been disadvantaged by branch closures.”

Mr Tehan said banks provided an essential service.

“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,” he said.

“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.”

Public submissions to the inquiry close on March 31 and people wanting more information can go to www. aph.gov.au

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