Plan to keep in-person banking afloat in regional Australia

Major banks have launched a plan to establish financial hubs across regional Australia in response to declining branch numbers in the bush.

Figures from the Australian Prudential Regulation Authority (APRA) confirm that regional branch numbers plunged from 2335 in 2017 to only 1459 in 2025.

Following a public outcry over branch closure in 2024, Treasurer Jim Chalmers floated a plan for a regional banking levy on the major lenders.

Now, under a blueprint from the Australian Banking Association, the top four lenders and other major banks would pool their resources to set up face-to-face financial hubs in about 10 towns currently without a branch.

Similar hubs have been rolled out in regional areas of the UK and New Zealand.

The ABA plan would put them in places such as council offices, libraries or Australia Post outlets.

Concierge staff would help customers but would be restricted from providing advice or carrying out transactions.

The proposal, lodged with the Australian Competition and Consumer Commission on October 2, requires an exemption from existing laws to enable the banks to work together.

If it receives the green light, the package would secure face-to-face banking for regional Australians, according to ABA chief executive Simon Birmingham.

“Banks recognise that some customers still prefer face-to-face options even though the number of transactions in branches has plummeted, challenging their viability,” Birmingham said.

“Branches will continue to be an option for regional customers, however this hub trial explores new ways to deliver face-to-face banking services in communities that currently don’t have a branch.”

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“Voluntary industry commitments will provide assurances to regional communities that they will continue to have access to in-person banking and the trial of new hub models will test a new approach to delivering face-to-face services while sharing infrastructure costs.”

Customers using cash is a leading argument pushed by proponents of physical banks.

But Reserve Bank of Australia figures show cash today accounts for about 15 per cent of consumer payments compared with 70 per cent in 2007.