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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.
ABA CEO Anna Bligh told 2GB’s Ben Fordham the protocol means if a bank closes a branch it is required to support its customers to transition to other methods of banking, like attending the post office.
The protocol also means banks are required to give a certain period of notice to the community when closing a branch depending on where the next branch is.
“This protocol will go a long way to giving people a better understanding of when a branch will close,” Bligh told the Nine radio station.
”Literally doing things like walking an older customer down the road to the post office, introducing them to the post office staff and letting them understand what they can do in the post office to continue face-to-face banking.”
But Bligh admitted even with the new steps to slow the shock of bank branch closures, not all customers will be happy.
”For many people, change is difficult and they’re not going to welcome the fact their bank is no longer in town,” she said.
Fordham questioned Bligh as to why there is no community consultation offered by banks when closing branches, especially in regional areas, but she argued no major commercial business would indulge this.
“I don’t know of other major commercial entity that would be consulting with the community about where they locate their buildings or offices including government,” she said.
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“There is no community consultation when they close down a Medicare office or Department of Social Security.”
She said instead this protocol is about giving community members who require face-to-face banking the time and support to move to alternative services.
9news.com.au contacted the big four banks regarding the impending changes.
A Westpac spokesperson said the bank is already beginning to introduce the protocol into their branches.
“As the current chair bank for the ABA, Westpac has been closely involved in developing the updated protocol,” the spokesperson said.
“Westpac has already commenced implementing the new protocol, including providing increased on-the-ground support to help customers transition their banking to other channels when branches are closed.”
A Commonwealth Bank spokesperson said: “As a member bank of the ABA, we’ve actively worked with the ABA to further strengthen the protocol and are supportive of the enhanced measures now in place.”
NAB’s executive retail Krissie Jones said: “NAB has welcomed the recommendations made by the Regional Banking Taskforce and we’re already fully compliant with the Australian Banking Association’s Branch Closure Protocol.
“We know that a branch closure can be a difficult change for some customers, but have found some of the recommendations made by the Regional Banking Taskforce such as providing branch closure fact sheets, can help our customers and the community better understand the rationale behind a decision,” she added.
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