Bankwest will become a digital-only bank, closing 45 branches in Western Australia and transitioning 15 to Commonwealth Bank of Australia (CBA) branches.
The bank is planning to convert to a digital bank completely by October 2024, closing or converting all the remaining bank branches it operates in Australia.
The bank claimed its Western Australian branches now average just 30 over-the-counter transactions each day and 15 in regional WA.
Bankwest executive general manager, Jason Chan, said the change would be “challenging” for some customers.
“I understand this will be difficult news for some of our customers and Bankwest is introducing a range of support measures to help our customers who are regular branch users carefully through this transition,” Mr. Chan said.
“It’s critical we prioritise investment for the majority of our customers who expect leading digital and broker banking services, and rarely use branches, but we have a clear focus on the needs of our regular branch users at this time.”
Bankwest is a subsidiary of the Australian Big Four’s Commonwealth Bank of Australia (CBA), which trades on the Australian Stock Exchange.
Finance Sector Union Calls the Move ‘Outrageous’
Finance Sector Union national assistant secretary, Jason Hall, said the move would disadvantage Bankwest customers who prefer to use a branch.“This is an outrageous decision by Bankwest which has completely abandoned its customer base in order to cut costs and become a digital bank,” Mr. Hall said.
“A range of Bankwest customers will be badly affected including the most vulnerable in our community.”
Mr. Hall said the worst impacted customers would be the elderly, Indigenous, those who speak English as a second language, and customers who are not computer literate.
“Maintaining a branch network costs money. But surely keeping faith with a loyal customer base is an important principle when those same customers and the banking fees they pay, have been at the core of Bankwest’s profitability for many years.
Staff Offered New Roles with CBA
Bankwest said a new career opportunity will be offered to every staff member impacted by the branch closures.Five hundred CBA jobs in technology, operations, and customer service will be directed to WA to support the digital transition.
However, the FSU’s Mr. Hall raised concerns the staff might lose the opportunity to work with customers in person.
Cashless Trend Rolls On
“This continues a trend that has seen branch numbers decline by 34 percent in regional and remote areas, and 37 percent overall, since the end of June 2017,” the Australian Prudential Regulation Authority said on Oct. 18.
Cash Welcome campaign spokesperson Jason Bryce raised concerns at the time saying there was no incentive for big financial institutions to be part of the cash system.
Australia Post Picking Up the Slack
Australia Post CEO Paul Graham told a Senate Estimates hearing in November that bank closures were putting pressure on post offices in regional areas.“Whilst a lot of people say cash is going to die, we certainly don’t see that, particularly in certain demographics, and also in certain neighbourhoods where cash is still prevalent.”