An alliance of regional banks has called for an urgent improvement to banking services in regional areas and a fix to the continued desertion of branch services in regional Australia, including Coonabarabran and other Warrumbungle Shire towns.\u00a0<\/p>\n\n\n\n
A moratorium on bank closures is in place until 2027, but the Regional Banking Investment Alliance (RBIA) says this has not been enough, as this does not cover continuing reductions in opening hours or reduction in services such as cash handling. In Coonabarabran, there are three main bank branches remaining, but all have seen hours reduced in recent years. <\/p>\n\n\n\n
The Alliance is proposing a bank-funded, low-cost, cost sharing model be introduced urgently, to quickly counter the ongoing decline in branch services. The model will see essential banking services and bank jobs with trained staff return to regional and remote communities. <\/p>\n\n\n\n
RBIA member and CEO of Regional Australia Bank, David Heine said a Community Service Obligation and cost sharing model on banks would simply reverse an unfair cross-subsidy that already exists \u2013 where banks that choose to stay and service regional communities are currently providing face-to-face services for the rest of the industry with no support. In a process called \u201cpass through banking\u201d regional banks are providing the daily services, whilst larger and online banks are profiting from mortgages and deposits. <\/p>\n\n\n\n
\u201cFace-to-face services are part of a bank\u2019s social licence to operate in Australia, and many are abandoning that responsibility,\u201d Heine said. \u201cFace-to-face banking services are not a \u2018nice to have\u2019 \u2013 they provide essential services and trained personnel to cater for the needs of the people and businesses in our regional and remote communities.\u201d <\/p>\n\n\n\n
\u201cBranches provide employment and infrastructure as well as community engagement and support. They are places of action when people need help from trained professionals \u2013 security, privacy, scam prevention, problem solving and cash services.\u201d <\/p>\n\n\n\n
As a consequence of community backlash, Federal Parliament has conducted two inquiries. Both inquiries concluded that branches were essential and that solutions were needed to keep bank branches in regional areas, however no meaningful policy has been implemented. <\/p>\n\n\n\n
Dale Grounds, CEO of The Capricornian Bank said the \u201cmoratorium\u201d on branch closures only covered the Big 4 banks, does not cover reductions in opening hours or services and is set to expire in 2027, whilst Bank@Post does not provide the array or services, privacy or security required by regional people. <\/p>\n\n\n\n
\u201cA proper incentive-based scheme is needed to preserve the financial viability of existing branches and incentivise banks to invest in new ones. <\/p>\n\n\n\n
\u201cThe RBIA has developed a modest and affordable cost-sharing model that redistributes bank funds to where they need to go, helping fund regional staff working face-to-face in our towns and communities. <\/p>\n\n\n\n
\u201cThis is a bank problem, and the industry needs to step up and fulfil their obligations to the Australian people. That is why the model is 100% funded by banks, with no taxpayer funds needed.\u201d <\/p>\n\n\n\n
In recent weeks, the RBIA has held several consultations with community and business groups, as well as discussions with other banks, politicians and Treasury. <\/p>\n\n\n\n
Rowan Lee, CEO of the Australasian Convenience and Petroleum Marketers Association says he supports the Regional Banking Investment Alliance, \u201cIt is essential that bank branches remain open, especially in regional areas. Fuel stores have been mandated by the government to accept cash, and bank branches have the staff and the security to ensure the ongoing accessibility to cash.\u201d <\/p>\n\n\n\n
Senior Policy Officer from the Combined Pensioners & Superannuants Association, Dr Billy Pringle recognises that \u201cface-to-face services cannot simply be replaced by online banking, especially for groups and communities who are digitally excluded. A loss of bank branches in the bush means a loss of financial autonomy and financial safety for these communities.\u201d <\/p>\n","protected":false},"excerpt":{"rendered":"
An alliance of regional banks has called for an urgent improvement to banking services in regional areas and a fix to the continued desertion of branch services in regional Australia, including Coonabarabran and other Warrumbungle Shire towns.\u00a0 A moratorium on bank closures is in place until 2027, but the Regional Banking Investment Alliance (RBIA) says […]<\/p>\n","protected":false},"author":1,"featured_media":370,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"newspack_ads_suppress_ads":false,"_newspack_byline_active":false,"_newspack_byline":"","newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"footnotes":""},"categories":[8],"tags":[],"class_list":["post-404","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-_newspack_local_news","entry"],"yoast_head":"\n