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After 60 years a bank branch in Perth has announced it will close its doors, with Bankwest signalling more branches are to be axed due to a lack of retail customers.
Bankwest’s Subiaco branch will close its doors after 60 years of service to the community as a result of dwindling retail customer numbers, the increasing preference for digital banking, and the transition of business customers to other financial institutions.
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Over the past year, in-branch transactions at the Subiaco branch have declined by 15 per cent, and this trend is expected to accelerate further with the shift to alternative banking services.
Bankwest general manager personal banking, Scott Spittles, said: “Looking ahead, we expect to operate fewer branches in the future as customer preferences shift to digital options, but we'll continue to support customers through a balanced range of digital and face-to-face services."
Business transactions currently account for approximately 50 percent of overall teller services, further contributing to the decline in usage.
The big four have long maintained online banking and banking via Australia Post are adequate replacements for brick-and-mortar branches.
ANZ recently stated in a Senate inquiry into regional bank closures that only 1 per cent of transactions occur over the counter, justifying the closure of branches across the country.
Bankwest has reassured customers who prefer in-person banking that they can continue to access services through their partnership with Australia Post.
The Bank@Post Subiaco office, located just 50 meters from the current branch, will facilitate various transactions such as deposits, withdrawals, and balance inquiries.
Bankwest had previously announced its decision to cease Business Banking activities, allowing the institution to focus on its vision of becoming a user-friendly bank for Australian homeowners.
Business customers accounted for 90 per cent of the most frequent transactors at the Subiaco branch in the past quarter, with those customers to complete their transition to CBA or other financial institutions over the next year.
“We’re proud of the impact Bankwest has had in the area, having been a part of the Subiaco community for 60 years, and supporting businesses and residents in creating the flourishing centre it has become,” Mr Spittles said.
However, he noted that the branch's average of 14 retail in-branch transactions per day ranked it among the lowest in transaction volumes across Bankwest's network of 31 metro branches.
“The volume of business customer transactions at Subiaco also means the decline at that branch in particular will significantly accelerate over the next year, while retail customers continue to increasingly use alternative services.
The Subiaco branch will close on 20 July 2023, after the R&I bank acquired the site on 13 June 1963, with Bankwest to retain all impacted colleagues.
ABA to introduce new bank branch closure protocol
Meanwhile, the Australian Banking Association (ABA) has introduced a new protocol starting on July 1 that governs the steps banks must follow when closing branches across the country.
The new protocol aims to stop banks from closing branches without providing a reason and banks are required to give a certain period of notice to the community when closing a branch depending on where the next branch is.
[Related: Bank branches axed as customers move online, APRA]
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