People First Bank will be the first large mutual bank to undertake large scale branch closures, and is unlikely to be the last.
The bank yesterday confirmed it planned to shut 18 branches effective Friday 4 April 2025, out of 88 in the bank’s network now.
Of the 88 branches, 56 are Heritage-branded and 32 People’s Choice. The two banks merged in March 2023 to form the largest mutual bank in Australia.
The bank closed the doors on three branches in the prior year
Like all banks, the surge in customer preference for digital banking casts a shadow over the economics of any large branch footprint.
“Increasingly, our customers are choosing ATMs, internet banking and our app for their day-to-day banking, with branch use now accounting for less than one per cent of all transactions” Maria-Ann Camilleri, chief customer officer at the bank said.
“Less than 0.7 per cent of customers associated with these branches have used a branch monthly in the past year.
“We need to prioritise the services our customers use most. This means reallocating people and resources to higher-demand areas, such as our 24/7 contact centre, and investing in technology to meet customers’ need for simple, convenient digital banking.”
People First reported operating expenses of $508 million in FY2024 and a net profit of $41 million.
The bank will offer alternative roles to all staff affected by these closures and there will be no job losses.