More than 2100 Aussie bank branches have closed across the country since 2017, marking a 39 per cent reduction in active branches for major metropolitan areas.
The shocking figures were revealed at a senate inquiry into the impact of branch closures in regional Australia on Friday.
Bosses of the big four banks have already faced a grilling from the rural and regional affairs and transport committee over the alleged failure of Australia’s major banks to measure general business activities, such as signing documents or changing account details, while deciding whether branches should be closed.
Adam Trevorrow from the Australian Prudential Regulation Authority (APRA) revealed the scale of bank closures when quizzed by One Nation senator Malcolm Roberts during Friday’s hearings.
Mr Trevorrow said 420 branches across the country had been closed over the last year alone.
A six-year analysis of APRA data revealed more than 2100 had been closed over six years.
Mr Trevorrow said these numbers marked a 39 per cent reduction in the number of branches in major cities and metropolitan areas. Regional areas suffered a 34 per cent loss.
“So 30-40 per cent in the last six years,” Mr Roberts clarified.
Mr Trevorrow said the number of ATMs across the country was also reducing, with metropolitan areas suffering a 60 per cent decline.
In regional areas, this figure was reduced by 50 per cent.
The figures led to Nationals senator Matt Canavan asking if the government was “asleep at the wheel”.
NAB recently announced five branches across the country would close from early 2024.
The locations include Tuggeranong in the ACT, Scone in NSW, Emerald in Greater Melbourne, Runaway Bay on the Gold Coast and Balmain in Sydney.
In a statement, NAB retail executive Krissie Jones said the closures were due to more people turning to online banking.
“While we understand some people will be disappointed, this decision was made after looking closely at the number of customers using these branches and the increased use of digital banking in the area,” Ms Jones said.
“Just as people are using online government services to complete their tax or a Medicare claim, locals in these areas are increasingly choosing to bank digitally because it’s often more convenient.”
Senators conducting the inquiry have already examined whether banks should mandate community consultation while deciding on closures or an undertaking to “maintain a rural presence” as part of their licence obligations.
