Major banks have agreed to extend their moratorium on branch closures in regional areas for two and a half years, until mid-2027, the Australian Banking Association said yesterday.
In fact, NAB has committed to a new moratorium on regional branch closures, with CBA and Westpac extending their existing moratoriums.
The government imposed conditions on ANZ and Suncorp to ensure no regional branch closures by these banks before July 2027, as part of the approval for ANZ’s takeover of Suncorp Bank.
NAB has the worst record for regional branch closures of any bank, at least under its previous CEO.
CBA, NAB and Westpac have all reached new in-principle Bank@Post agreements, while negotiations between Australia Post and ANZ for ANZ to resume support for Bank@Post have “reached an advanced stage, with key terms agreed which would see ANZ customers able to use Bank@Post services from 1 October 2025.”
ANZ withdrew from Bank@Post six years ago.
Macquarie and HSBC will also start negotiations with Australia Post on Bank@Post services.
ABA CEO Anna Bligh said the industry “remained strongly committed to meeting the needs of customers in the bush.
“This is a major commitment to keep regional branches open and available to customers,” Bligh said.
“While Australians continue to shift to digital banking and payment platforms, banks recognise some customers still prefer face-to-face services.
“This is a major commitment to make sure regional customers can continue to visit a branch and access services if they wish to do so.
“We also trust this increased investment in Bank@Post will contribute to the sustainability of these services for those Australians who wish to continue to use them.
“Our industry will continue to work with the government to ensure banking services continue to meet the needs of customers across regional Australia.”
For major banks, these commitments could well morph into costly and dubious, long-lasting measures.
In the target market in regional areas, the demand for continued access to in-person banking services is real.
Research by .id consulting for Regional Australia Bank recently found that “bank branches remain essential for regional and rural communities, providing trusted, secure, and face-to-face services that digital alternatives cannot fully replace.
“While communities adapt to changes, they are deeply concerned about the future risks posed by branch closures, particularly around access, financial security, and economic stability.
“Maintaining a strong physical presence is seen as critical to safeguarding the financial wellbeing of regional Australians.
“Communities place the greatest value on bank branches for essential tasks such as fraud prevention, large cash withdrawals, and resolving complex financial matters like estate management.
“Access to trained staff for personalised support is seen as irreplaceable” the .id consulting research concluded.
For banks and investors, the question is; how far out will these uneconomic branch closure moratoriums be extended? 2037, 2047, or when?