Yahoo Finance NAB under fire over branch closures: ‘Betrayal of the community’
NAB is the only major bank that hasn’t paused regional branch closures in the wake of a senate inquiry.
NAB has confirmed it will close five bank branches across the country next year, as the senate inquiry into regional bank closures continues.
The major bank will close branches in Tuggeranong, ACT, Scone, NSW, Emerald, Vic, Runaway Bay, QLD, and Balmain, NSW on March 7, 2024.
NAB retail executive Krissie Jones said the decision came because more customers chose to bank online, rather than in person.
Have you been impacted by bank closures? Contact tamika.seeto@yahooinc.com
“While we understand some people will be disappointed, this decision was made after looking closely at the number of customers using these branches and the increased use of digital banking in the area,” Jones said.
“Just as people are using online government services to complete their tax or a Medicare claim, locals in these areas are increasingly choosing to bank digitally because it’s often more convenient.”
Finance Sector Union secretary Julia Angrisano said NAB was out of step with the other Big Four banks, who have agreed to pause their regional branch closures while the senate’s inquiry is ongoing.
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“Closing these banks is a betrayal of the community and staff in these areas and will make banking harder for older people, businesses and anyone who needs to speak to a banker face to face,” Angrisano said.
“It is a disgrace that NAB continues to aggressively pursue its branch-closure strategy without genuine community engagement or employee consultation.”
When fronting the senate inquiry earlier this year, CEO Ross McEwan said 93 per cent of the bank’s transactions with its personal customers happened through digital channels and only 3 per cent of its personal banking customers did their banking exclusively in person at a branch.
NAB said there would be no job losses as part of the closures and impacted staff would be offered other roles across the bank.
How many branches have closed?
In the year to June 2023, a staggering 424 branches have closed - representing 11 per cent of Australia’s overall number.
The Australian Prudential Regulation Authority found 122 of those branches - or 7 per cent of Australia’s total - were located in regional and remote areas.
Over the past years, branch numbers have dropped 34 per cent in regional and remote areas, and 37 per cent overall.
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