Banking Crisis in Rural Areas: Residents Forced to Travel Hours for Services
Residents, farmers, and business owners in rural areas across the country are facing significant challenges following the closure of numerous bank branches. As a result, they are being forced to travel long distances to access basic banking services. This issue has come under scrutiny in a senate inquiry into regional banking services, which recently visited Western Australia to hold public hearings in Carnamah and Beverley.
Carnamah was specifically chosen for the inquiry because Westpac closed the town’s only bank in February, leaving residents with limited options for banking. The closest bank branch is now 120 kilometers away in Moora, requiring locals to spend hours traveling back and forth. Retired farmer George Fowler is one of the affected residents who now has to make the arduous journey to Moora for his banking needs. He expressed his frustration, stating, It’s such an inconvenience. When the police say I can’t drive my car anymore, I’ll have to get on the bus down to Moora, spend the night at the Moora hotel…and hope to God there’s a bus going towards Geraldton that day. Many others share his sentiments.
While Westpac has suggested that most banking transactions can be conducted through Australia Post, the local post office is unable to provide certain essential services such as personal identification, facilitating account openings or closures, and credit card facilities. This limitation makes it even more challenging for residents in rural areas to meet their banking needs. Cash is still a requirement for various community events and sporting activities, necessitating the availability of coins and notes, something that the post office cannot fully cater to.
The closure of the Westpac branch in Carnamah has also had a significant impact on the community. Shire of Carnamah Chief Executive Robert Paull mentioned that there was no community consultation before Westpac made the decision to close the branch. The loss of the branch has not only affected regular banking services but also resulted in the removal of a 24-hour ATM in the town, causing further inconvenience and limitations for residents.
Similar concerns have been raised in other regions of the country, including Queensland and Victoria, during the senate inquiry. Many people are questioning why big banks, which have been benefiting from significant profits, are not investing more in regional communities. Senator Gerard Rennick expressed his disappointment, urging the major banks to collaborate with country Australians to find solutions instead of leaving towns without any viable banking options.
Bankwest, one of the banks in question, faced criticism during the inquiry. The representative from Bankwest, Mr. Robert Cory, defended the bank’s stance by emphasizing their prioritization of online banking services, as the majority of their customers opt for online transactions. He also mentioned that Bankwest has made a substantial investment in the Bank@Post arrangement, which covers regional communities in Western Australia.
In response to the outcry from concerned residents, Westpac recently reversed its decision to close several branches in Queensland. However, it appears that there are no plans to reopen a branch in Carnamah.
The senate inquiry into regional banking services continues, and it is hoped that the big banks will keep an open mind and work towards improving access to banking services in rural areas. The closure of bank branches in these communities not only affects residents, farmers, and business owners but also has broader implications for the local economies. Finding viable solutions and striking a balance between digital services and the need for physical branches will be crucial in addressing this banking crisis in rural areas.
