Bendigo Bank Plans Branch Closures, Sparking Backlash
Bendigo Bank has announced the closure of 10 branches across Victoria, Queensland, and Tasmania, leading to significant concern among affected communities. This decision is perceived as a deep disappointment, particularly for regional areas that will now be left without any local banking facilities.
The bank attributed its closure strategy to shifting customer preferences, a decline in business activity, and rising operational costs. As online banking becomes increasingly popular, traditional bank branches have faced unprecedented challenges. Since 2017, approximately 36% of regional bank branches in Australia have shut down, exacerbating the accessibility issues faced by many communities.
Richard Fennell, CEO and Managing Director of Bendigo Bank, asserted that shuttering branches is always a last resort. "To maintain what distinguishes our brand, we must balance our physical presence with ongoing investments in our 2.7 million customers’ evolving needs," he remarked.
Criticism from the Finance Sector Union (FSU) has been fierce. Julia Angrisano, the FSU’s national secretary, described the closures as "a slap in the face," questioning the commitment of one of Australia’s largest regional banks to support local communities. She expressed her concern over the decision, stating, “This is an incredibly disturbing development and does not bode well for the future of Bendigo Bank’s presence in regional Australia.”
The affected branches are located in Bannockburn, Korumburra, and Yarram in Victoria; Malanda in Queensland; and Queenstown in Tasmania, leaving these communities with no agricultural banking services. The closure of the Bendigo Bank branch in Queenstown will effectively require locals to drive over two and a half hours to access the next closest branch in Burnie.
Shane Pitt, the Mayor of West Coast, Tasmania, has voiced his intention to oppose the branch closure and has called out the bank for failing to engage effectively with the local community. The closures will impact the equivalent of 32 full-time positions.
From August 1 to October 31, the specific branches slated for closure in Victoria include Ballarat Central, Bannockburn, Malop Street in Geelong, Korumburra, South Melbourne, and Yarram. In Queensland, the branches at Malanda and Tully North will close, while Kings Meadows and Queenstown will close in Tasmania.
Despite these closures, Bendigo Bank customers can still utilise other banking methods, including Australia Post’s Bank@Post services, mobile banking apps, phone banking, and existing ATMs.
The bank’s closure announcement follows recent discussions between the federal government and Australia’s major banks aimed at preserving regional services through at least mid-2027. The current situation raises the question of sustainability and reliability for banking services in Australia’s rural landscapes, as diminishing in-person banking options increasingly leave community members grappling with financial accessibility challenges.
This latest move by Bendigo Bank not only raises alarms regarding financial inclusion in Australian communities but also indicates a growing trend among banks to pivot towards digital services at the expense of local branch networks, leaving many Australians worried about their future banking needs.
