Finance in a Branchless World: The Consequences of Bank Closures
With the evolution of the digital world accelerating and bank branches closing their doors on face-to-face communication, many Australians seeking finance are growing increasingly concerned about navigating the loan process online.
In the year to 30 June 2023, 424 Australian bank branches closed, signalling a profound shift away from traditional in-person banking. 1This constitutes 11% of Australia’s overall branches.
This transition towards digital banking is indicative of a broader trend in the finance industry, where customer experience seems to be increasingly sidelined in favour of automation. The consequences of this shift are most acutely felt in regional Australia, where many small businesses depend on cash transactions and face-to-face support. 122 branches were closed in regional and remote areas last financial year, representing a 7% decline in regional bank branches.2It’s a situation that has left many communities perplexed, and unsure of how to secure finance for their homes, businesses, and assets in this new landscape.
In response to the challenge posed by online-only banking, mortgage brokers are emerging as the heroes for those who still want in-person meetings to access finance and gain a better understanding of the home loan process. It’s evident that not everyone is eager to embrace a digital-only approach, and there remains a high demand for face-to-face communication in the financial sector.
While some of the major banks point to the convenience of digitised banking, a growing portion of the population is expressing a desire for personal service and the expertise that human interaction provides. Over 120,000 Australians have signed a petition in support of maintaining physical cash and in-person banking services in the country, highlighting the concern surrounding the push towards a fully digital banking experience.
At a recent senate inquiry that focused on the closure of banks in regional Australia, NAB Group CEO Ross McEwan shared insights into the changing landscape of banking. He noted that while a small percentage of their customers exclusively use branches, NAB recognises the continued value of personal service and the expertise their bankers provide.3
If you’re concerned about the future of your finances and the level of support you’re receiving, our friendly and knowledgeable MoneyQuest brokers are ready to assist. Our team are available to meet face-to-face, over a call, or through consultation, ensuring that you have the personalised support and guidance you need during these changing times.
Contact us today to learn more about how we can help.
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