McCormack meets with Junee Council to discuss local bank closure

Federal Member for Riverina Michael McCormack has met with the Junee Shire Council to discuss the closure of the town’s only bank.

Mr McCormack said he supported the Junee Council exploring options to ensure its residents have the banking services they expect and deserve.

“It is not good enough that businesses and community groups will now have to travel to Wagga Wagga to do their banking,” Mr McCormack said.

“I was pleased to meet with Junee Shire Mayor Neil Smith, General Manager James Davis and Chief Financial Officer Luke Taberner to listen to their concerns about banking in Junee. I have also been in contact with several Junee community members over recent weeks.

“Whilst the Nationals were in Government, my Parliamentary colleagues Bridget McKenzie and Perin Davey helped to establish a Regional Banking Taskforce to assess the effect of bank branch closures on regional communities.

“Regional people deserve access to the same banking services as those in the city. I encourage those who feel aggrieved by decisions to add their name to the petition.”

The Regional Banking Taskforce was established on 22 October 2021 by the Coalition Government to final report was released in September 2022. It made seven recommendations to improve banking services in regional Australia:

1.        Review and strengthen the Australian Banking Association’s (ABA) Branch Closure Protocol

  • The ABA should review and strengthen its Branch Closure Protocol and introduce an ABA Customer Care Standard by mid-2023, to improve communication and support when regional branches close or their hours are being permanently and materially reduced.

2.        Implement branch closure impact assessments

  • Banks should establish a process for conducting and publishing regional branch closure impact assessments by mid-2023. Assessments should provide clear reasons for the closure and the engagement that will occur with customers, local government and other stakeholders following the announcement of the closure.

3.        Promote and support Bank@Post services

  • Australia Post and participating banks should collaborate to promote Bank@Post services more widely and help their customers utilise the banking services available to them. This should include working together to formalise and expand programs to support transition to Bank@Post when branches close.

4.        Maintain access to cash

  • Australia Post should consider how the cash float and deposit needs of small businesses and community group customers can be met.

  • Australia Post and Bank@Post partners should work towards standardising deposit and withdrawal limits to enable easier promotion to customers and communities.

  • The major banks should commit to continue to provide (and expand where possible given competition restrictions) access to fee-free ATMs in remote Indigenous areas.

5.        Improve support for regional consumers experiencing vulnerability

  • Banks should provide additional support for those experiencing vulnerability, including targeting transitional support when a branch closes and helping customers onto fee-free banking accounts. This includes engaging with First Nation communities on their banking needs in regional Australia, promoting services and reviewing the effectiveness of dedicated resources.

6.        Continue to support and improve digital connectivity and literacy in regional areas

  • The Australian Government to invest in telecommunication services through its Better Connectivity for Rural and Regional Australia Plan, which will provide significant improvement in regional connectivity. The Government to encourage co-investment by industry and States and Territories to maximise outcomes. Banks should continue to provide digital literacy support for people experiencing vulnerability and coordinate with the Government on digital education programs, such as the Government’s ‘Be Connected’ program for improving digital literacy for older Australians.

7.       Review the APRA Points of Presence collection

  • Australian Prudential Regulation Authority (APRA) to commence in 2022 a review of its Authorised Deposit-taking Institutions (ADI) Points of Presence collection to better capture indicators on how banking services are accessed, with public consultation in early 2023.

“These recommendations are a clear message to the banks to improve their communication and support of the regional communities which have supported them,” Mr McCormack said.

“Banks must seriously consider the detrimental impact of closing a branch in regional communities and consult with communities before making these significant decisions.

“It is now incumbent upon the current Government to monitor the banking sector to make sure any measures being put in place are followed.”

Shane Manning