Bankwest executives will face an investigation into the closure of rural banks, a week after the company announced it would close all its branches in favor of online services.
The Commonwealth Bank subsidiary says it will become a digital bank when it closes 45 branches in Western Australia in October, while 15 regional locations will be converted to CBA operations.
According to Bankwest’s announcement, 97 percent of transactions were made online, with less than two percent of customers regularly visiting branches.
There were an average of 30 face-to-face transactions per day at its suburban locations and 15 at its regional locations, the company said.
“I understand this will be difficult news for some of our customers and Bankwest is introducing a range of support measures to carefully help regular office occupiers through this transition,” said managing director Jason Chan.
Company executives are expected to face the rural banking investigation in Tom Price, Washington’s Pilbara region, on Wednesday afternoon.
Nationals senator Matt Canavan asked Bankwest to appear at the hearing and said the closures were a disappointing decision.
“These closures will impact all the communities they serve, reducing banking choice and the ability to obtain essential services,” said Senator Canavan, chairman of the committee.
The commission is investigating why almost 800 rural branches have closed across Australia since June 2017, forcing residents of the region to travel long distances to manage their finances.
Leaders from all the major banks told the inquiry that the rapid rise of digital banking and the decline in cash transactions have made branches less viable.
But regional councils and communities have shown that online banking is not reliable in areas where phone and internet connections are still patchy.
Bankwest says it will become a digital bank when it closes 45 branches in WA in October.
Farming groups told the inquiry that farmers’ relationships with local bank managers are crucial to their complex business operations and lending.
The commission has been told that small businesses suffer as people take their banking to neighboring towns, while elderly and vulnerable populations are left without access to cash.
The Pilbara’s Shire of Ashburton, which covers 100,000 square kilometers, has no bank despite being home to major natural gas and iron ore mines.
Residents of Paraburdoo, a mining town 1,500 kilometers north of Perth, have to make an 850 kilometer round trip to the nearest bank in Karratha.
Others in the county travel up to 700km, the council’s submission to the inquiry said.
“The Shire of Ashburton is concerned about the impact this will have on vulnerable members of our community and on business productivity,” the submission said.
The investigation will be reported to parliament in May.