SWSbank has joined with 24 other regional banks and community organisations to advocate to keep face-to-face branches open in regional towns.
The organisations have formed the Regional Banking Investment Alliance (RBIA) and want essential bank branch services such as cash handling and fraud advice to be supported by a community service obligation (CSO) on the wider Australian banking sector to share the cost burden.
Despite inquires and taskforces, big banks have closed more than 90 regional branches since February 2022, including more than a dozen this year, while RBIA members continue to open branches in towns like Wellington NSW and Capella Qld with no support.
Regional bank branches often incur additional costs due to “pass through banking”, where customers use regional bank branches for costly services like cash handling and
then transfer their funds to big banks who enjoy the profits.
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SWSbank CEO and Alliance Member, Andrew Jones said the local banks are committed to their continuing support of the local communities.
“We are passionate about servicing our local communities and keeping our profits local," he said.
"We provide a range of face-to-face services, such as fraud and scams advice, cash deposits and withdrawals and cash floats.
"We want the banks who neglect to service regional areas to pay their fair share in keeping face-to-face services alive.
“The big four banks made more than $31 billion in profit last year, and should be held accountable as part of their community service obligation to contribute to banking
services for all Australians, regardless of where they live."
A delegation of Alliance members recently travelled to Canberra to discuss a cost sharing model where big banks whose regional branch investment falls short, continue
to support regional communities.
This year there have been more announcements that bigger banks are closing regional branches.
Meanwhile, banks like SWSbank are optimistic about face-to-face services.
The Alliance has garnered support from community groups, with the Country Women’s Association (CWA) NSW, Regional HQ, Combined Pensioners and Superannuants
Association (CPSA) and National Seniors signing on as supporters.
CEO of CWA NSW, Danica Leys has welcomed the announcement of SWSbank joining the ranks of the RBIA.
“Regional and rural Australia is the lifeblood of Australia," Ms Leys said.
"Many families in the regions rely on their local branch for not just face-to-face banking services, but for employment and sponsorships.
"Regional banks keep their profits local and are part of helping our country towns thrive.
“People in rural Australia should not miss out on essential services, and face-to-face banking, access to cash, and scams advice are essential for all Australians.”
With the finalisation of a cash mandate on the government’s agenda, a new consultation on cash distribution, and continuation of branch closures from larger banks, the Alliance hopes to continue work with the government on creating an environment where face-to-face branch services and fair cash distribution is available, no matter where you live in Australia.
