Queensland Country Bank has joined 24 other regional banks and community groups to advocate to keep face-to-face branches open in regional towns.
The organisations have formed the Regional Banking Investment Alliance (RBIA) and want essential bank branch services such as cash handling and fraud advice to be supported by a community service obligation (CSO) on the wider Australian banking sector to share the cost burden.
Despite inquires and taskforces, big banks have closed more than 90 regional branches since February 2022, including more than a dozen this year, while RBIA members continue to open branches in towns like Capella with no support.
Alliance spokesperson and CEO of Queensland Country Bank, Aaron Newman said that regional bank branches often incur additional costs due to “pass through banking”, where customers use regional bank branches for costly services like cash handling and then transfer their funds to big banks who enjoy the profits.
We help these communities with fraud and scam advice, cash withdrawals and deposits, cash floats, and provide local jobs, Mr Newman said.
We are passionate about servicing our local communities and keeping the profits local, but it’s really tough when we are competing against giants, who are not doing the same.
Around 30% of transactions in our banks lead to pass through banking, seriously disadvantaging our ability to compete and expand. We just want the banks who are neglecting the regions to pay their fair share in keeping face-to-face services alive.
A delegation of Alliance members recently travelled to Canberra to discuss a cost-sharing model where big banks whose regional branch investment falls short, continue to support regional communities.
This year there have been more announcements that bigger banks are closing regional branches. Meanwhile, banks like Queensland Country Bank remain optimistic about face-to-face services expanding.
The Alliance has garnered support from community groups, with the Country Women’s Association (CWA) NSW, Regional HQ, Combined Pensioners and Superannuants Association (CPSA) and National Seniors signing on as supporters.
CEO of National Seniors Australia Chris Grice said:
Australia needs to maintain the delivery of face-to-face banking services, especially for our regional and remote communities where simply popping into another branch (which is becoming increasingly difficult in metropolitan areas too) isn’t an option.
Regional Banks should be supported with sustained investment and applauded for their continued commitment to provide practical and essential services in their communities, including face-to-face banking, access to cash, and important advice on scam prevention and recovery as well as fraud.
It should also be noted that financial elder abuse cannot be identified online like it can be in face-to-face situations. There are some circumstances when there really is no substitute for face-to-face customer service and support.
For many older Australians, face-to-face banking is not only a convenience, but also a necessity. Many families in the regions also rely on their local branch for employment and sponsorships.
With the finalisation of a cash mandate on the government’s agenda, a new consultation on cash distribution, and continuation of branch closures from larger banks, the Alliance hopes to continue work with the government on creating an environment where face-to-face branch services and fair cash distribution is available, no matter where you live in Australia.
About RBIA
The RBIA is made up of 21 regional banks, including: Regional Australia Bank, The Capricornian, Traditional Credit Union, Broken Hill Bank, Northern Inland Credit Union, Cairns Bank, The Mutual Bank, Central Murray Bank, Bank Orange, Summerland Bank, Horizon Bank, Geelong Bank, Family First, Warwick Credit Union, Bank WAW, SWS Bank, Hume Bank, Goulburn Murray Credit Union, Central West Credit Union, Queensland Country Bank and Coastline Bank.
Early supporters include the Country Women’s Association of NSW, National Seniors Australia, Combined Pensioners & Superannuants Association and Regional HQ.
More information can be found here.