Bankwest’s Shocking Decision Sends Customers into Frenzy: Is Your Local Branch Next?”

Bankwest’s recent decision to close its branches and transition to online services has sparked considerable backlash from its customers. The bank, which has a 130-year history as the former Bank of Western Australia, currently operates 60 branches. However, it plans to close 45 of these branches, while rebranding the remaining 15 in regional areas under the Commonwealth Bank, its parent company.

The rationale behind this decision, according to Bankwest, stems from evolving customer preferences, with a significant majority (97%) of transactions now being conducted digitally. They noted that fewer than two percent of customers regularly visited branches, with an average of just 15 over-the-counter transactions occurring daily in regional Western Australia.

Despite the bank’s assertion that this move will bring long-term benefits to Western Australia, many customers have expressed their frustration and anger. Concerns primarily revolve around the potential job losses for branch staff, the impact on elderly customers who may struggle with digital banking, and a perceived lack of clarity regarding the transition process.

In response to customer feedback, Bankwest has been actively engaging with individuals, addressing their concerns through personalized responses and creating a FAQ page to provide more information. They’ve emphasized their commitment to supporting impacted branch staff and have highlighted alternative banking options for customers, such as utilizing Bank@Post services available at Australia Post outlets.

Nevertheless, some customers remain unconvinced, with many expressing intentions to switch to other banks with physical branches. The decision has stirred debate about accessibility and inclusivity in banking, particularly for vulnerable groups such as the elderly and those with disabilities, who may rely on face-to-face assistance for their banking needs.

Bankwest’s Transition to Digital Banking Sparks Controversy

Bankwest highlighted that less than two percent of its customers regularly visited physical branches, with a significant 97 percent of transactions now conducted digitally. They also noted that, on average, only 15 over-the-counter transactions took place in regional Western Australia each day.

The decision to close Bankwest’s physical branches has drawn criticism, with Nationals Leader David Littleproud labeling it as a “broken promise” and accusing the Commonwealth Bank of being “tricky” and consistently aiming to phase out Bankwest. This move occurs amidst a Senate inquiry into the decline of regional banking services, a trend seen across Australia as banks withdraw from regional areas.

The history of Bankwest includes its acquisition by Britain’s Bank of Scotland in 1995, later becoming part of the London-based Lloyds Banking Group. In 2008, Lloyds sold Bankwest to the Commonwealth Bank for $2.1 billion. Despite initially expanding the Bankwest brand to major cities on the East Coast as a challenger brand, CBA eventually scaled it back to focus solely on Western Australia in 2018.

Commitment to Customers and Staff

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Bankwest’s Executive General Manager, Jason Chan, acknowledges the challenges that some customers may face with the transition to digital banking. He emphasizes that supporting customers through this change and retaining affected staff are his primary concerns.

Recognizing the shifting landscape of banking preferences, Chan underscores the importance of prioritizing investments to meet the demands of the majority of customers who favor digital and broker banking services over traditional branches. However, he stresses that Bankwest remains committed to addressing the needs of regular branch users during this transition period.

Chan reassures Bankwest employees that they will be given opportunities to continue serving customers through digital channels. He highlights the invaluable knowledge and experience of branch colleagues, ensuring they will be offered avenues to access new banking roles in the digital realm, allowing them to continue supporting customers within their own communities.

Additionally, Chan announces the relocation of 500 Commonwealth Bank Group roles in technology, operations, and customer service to Western Australia, reinforcing support for Bankwest’s digital transformation.

Looking ahead, Chan expresses Bankwest’s commitment to evolving with the times, ensuring sustainability, growth, and success as a prominent Western Australian-based business and a major employer in the national banking sector.

He emphasizes the distinct choices available to customers between Commonwealth Bank’s branch-based personal and business banking services and Bankwest’s streamlined digital and broker offerings, tailored to meet the needs of homeowners.

Controversy Surrounding Bankwest Branch Closures

Nationals Leader David Littleproud has strongly criticized the Commonwealth Bank’s decision to close Bankwest branches, labeling it as a breach of their promise not to do so until 2026. Littleproud accused the bank of being deceptive and suggested that their intention was to eventually merge the two brands. He emphasized the importance of honoring promises made to the Australian people, especially for the largest bank in the country, warning that failure to do so would jeopardize their social license to operate.

Littleproud expressed concern about the impact of branch closures on regional customers, highlighting the difficulty they may face accessing banking services, particularly in remote areas. He proposed utilizing postal office networks as a potential solution, citing their accessibility in rural communities where alternatives are scarce.

State opposition leader and WA Nationals leader Shane Love echoed these concerns, stating that Bankwest had assured him of providing opportunities for affected communities to transition to Commonwealth Bank customers. However, Love emphasized that the true measure of their commitment would be evident in their actions over time. He mentioned that both Bankwest and Commonwealth Bank have pledged to retain regional staff and continue providing services in communities previously served by Bankwest branches.

The closure of approximately 2,100 branches across major banking institutions over the past six years underscores the broader trend of diminishing physical banking infrastructure.