Westpac Commits to Keeping Local Branches Open Until 2030

Westpac has made a promise not to shut down any local branches until 2030 and plans to send staff to regional cities lacking a physical bank presence. Over the last five years, the bank has closed more than 1,500 branches, facing significant backlash from the public for these closures.

The decision to extend the branch commitment comes during a time when the CEOs of the Big Four banks are being scrutinized by the House of Commons Economics Committee. In 2023, major banks halted local bank closures, now pushing that pause from mid-2027 to 2030.

Westpac’s CEO, Anthony Miller, stated this move aligns with a revamp of the bank’s regional banking services. The bank currently operates 492 branches across Australia, which is nearly half of what it had five years ago—a reduction of 423 branches.

“Strong local communities are vital for a strong Australia, and we want to make sure these communities can access essential services,” Miller remarked.

He also noted, “We are enhancing our services and boosting our investments in critical areas to help fortify our regions.”

Earlier in February, the federal government struck a deal with the four major banks to maintain local banks until at least mid-2027.

This agreement does not extend to mid-sized banks, like Bendigo Bank and Adelaide Bank, which have recently come under fire for their own closures, leading some customers to travel long distances for banking services.

In the past, the government considered implementing taxes on banks with limited local presence, and this option may come back into play.

In September, a group representing 21 smaller banks proposed a new funding model to the government, which would cost banks $153 million annually. However, Westpac is against this proposal.

Westpac will also start testing community banking services with partnerships in local councils and community organizations.

Beginning in early 2026, mobile bankers will visit towns without a bank, operating out of city halls on a weekly or bi-weekly basis, depending on demand. Customers will be able to seek help with general banking questions and get referrals to specialized services.

Miller expressed it is “clear” that having a physical presence is crucial for connecting with customers in regional Australia.

“Personal relationships carry great weight in rural areas. We appreciate the importance of having someone to sit down with, someone familiar with your business and goals,” he said.

Yet, he added, “We’re not aiming for a one-size-fits-all approach; we need to find the right balance.”

With about 96 percent of transactions being processed digitally, Miller emphasized the need for services that cater to all customer needs, whether they’re digital, physical, or personal.

The pilot program will kick off in rural New South Wales locations such as Dungog and Buladera, coinciding with the closure of the Dungog branch in 2017.

Recent data indicated that bank branches decreased by 155 in the last financial year and by 1,564 over five years. The trend continues in rural areas, with 29 closures in the last year alone.

In response, Westpac is establishing new regional service centers, including one that opened last month in Moree, aimed at providing direct support to both retail and business customers.

Despite closing its Moree branch earlier in 2023, further centers will be set up in Leongata, Victoria, and Smithton, Tasmania by early 2026.

Miller acknowledged that the bank’s past closure decisions were erroneous and mentioned a significant investment of over $65 million aimed at refurbishing the existing regional network. Additionally, a Regional Graduate Program is set to commence in 2026, contributing more than $1.5 million annually to local events and sponsorships.