Latest news with #BendigoBank
ABC News
4 days ago
- Business
- ABC News
Regional communities look for banking solutions as major banks leave town
Since Bendigo Bank announced it will be closing 28 agency services across the country, residents in the small town of Cunderdin, 160 kilometres east of Perth, face the prospect of a 120km round trip for some banking services. Bendigo Bank's decision has left Cunderdin Shire president Alison Harris "hugely concerned and deeply disappointed". The agency was run out of the town's co-op service and was set up after Westpac left town. Cr Harris said many people transferred to Bendigo Bank at the time and now faced the prospect of having to transfer again. "A bit like doctors and grocery shops, the bank is vital in a small community," she said. In a statement, Bendigo Bank said it would shut down its agency model across 28 locations by October, citing "decreasing customer use". The bank's service in Cunderdin provided the community with cash, floats for the footy, and other general banking. Residents' closest branch will now be either the town of York or Northam — a nearly two-hour round trip. Bendigo Bank said customers would be connected with their closest alternate service. Cr Harris said the decision to shut the Bendigo Bank agency would have ripple effects despite the town being able to access post office banking services. "And once people do travel out of town, they may shop out of town, they may go to the doctor out of town," she said. Cr Harris said that while some physical locations might be unprofitable for banks, she was concerned about elderly residents who lacked the digital know-how to conduct their banking online. It is a problem the founders of the Indigenous-owned Traditional Credit Union (TCU) encountered 30 years ago in the Northern Territory as the big banks started to leave. "If you go into any community that has lost a bank, they will tell you exactly how devastating it is," TCU CEO Simon Lyons said. The credit union was formed on the island of Milingimbi after remote communities in the Top End had no access to banking facilities. "Big banks have got shareholders and they've got to answer to them," he said. "It's costly to operate in remote communities. "It's very difficult, particularly up here in the Northern Territory, where a number of these communities are cut off in the wet season and access to them is limited quite often to fly-in." Mr Lyons said communities suffered when banks pulled out, and getting cash into those areas could become difficult for local businesses and groups. "It sounds like a minor thing, but it is actually a major thing, along with the ability to actually go and talk to someone." Mr Lyons said services, such as opening or cancelling accounts or handing deceased estates, could only happen in branches, and closing locations could impact local jobs. He said the community banking model worked, but also needed support. "We're the smallest bank in the country, but we're regulated in exactly the same way as a Commonwealth Bank or a National Australia Bank," he said. "That regulation and compliance with that regulation come at a cost, and it isn't proportional." Mr Lyons said smaller banks like TCU had the same regulatory requirements and the same cost impost without the same revenue flows and profit. In February this year, Treasurer Jim Chalmers announced a moratorium on regional banking closures from the big four banks until July 2027. Banks were also asked to increase their "commitment to and investment in regional banking", with Bank@Post, that is banking at a post office, being one of the preferred options. "Communities, despite their remoteness or the fact that they are regional, shouldn't be deprived of that." One solution that border communities in Victoria and New South Wales have adopted is the partnership between smaller banks and councils. Hume Bank has partnered with Hume Council since 2005 and runs a branch inside the council office in Holbrook, New South Wales. Hume Bank's CEO, Stephen Capello, said residents in Holbrook would have to drive 45 minutes to the next town after the last bank closed down. He said while customer behaviour was evolving, regional communities were seeking "equitable banking services" alongside their metro counterparts. "[There is a] strong belief that these services are required to underwrite the future of these small towns," he said. "I think regional Australia needs a socially responsible banking industry, and that needs to reflect some of the heavy lifting that small regional banks and community and customer banks are doing at the moment." In a statement, the Finance Sector Union said it had "deep concerns" about banks "unilaterally" making significant cuts to their service and regional communities. The union said it was continuing to pressure the federal government on the issue of regional banking. The union's assistant national secretary, Nicole McPherson, said it had been 14 months since a Senate inquiry handed down a report calling for banking to be regulated as an essential service. "It is critical that the federal government step in and protect bank workers and customers, given that the banks have proven themselves to be incapable of doing anything other than putting profits and shareholders first," she said. The Australian Banking Association declined to comment.
The Advertiser
5 days ago
- Business
- The Advertiser
'Very angry, what's next?': Bendigo Bank to shutter services across regional Australia
Rural communities will have fewer banking services as Bendigo Bank moves to wind down its agency model and step up e-banking across regional Australia. It will shutter its limited banking services available via third parties such as news agencies and post offices in rural areas around Australia by the end of the year. See full list of closures: Twenty-eight Bendigo Bank agencies across NSW, Victoria, Queensland, South Australia and Western Australia will close this year. Bendigo Bank's chief customer officer, Taso Corolis, said it was a "difficult decision" made from "evolving customer preferences". Mr Corolis said the bank would "proactively" support customers, including by walking them through e-banking services. Murrumbidgee Council deputy mayor Robert Black said the community was "very very angry". The NSW Riverina council area has two agencies, Jerilderie and Darlington Point. He said the closure of the agencies comes after the loss of other services in the area, such as the local butcher, newsagency and hairdresser. "What will be next?" he asked. Cr Black said it would be rural residents who would bear the cost, including travelling between 30-150km to get to the next branch. "There is no compensation for rural residents," he said. "It's another one of the penalties for living in rural communities." He blamed the federal government's water buyback, which he said had seen rural communities "shrink". READ MORE: Professionals with highest salary growth in Australia Lachlan Shire Council mayor John Medcalf echoed the disappointment, adding there had been a lack of consultation. The NSW Central West Council will lose the Cargelligo and Condoblin agencies. "It will be especially hard for the elderly," he said. "It was sold to customers as a community bank; the more people invested in the community, the more dividends the community would get out of it." READ MORE: Baby Boomers are crypto's fastest-growing investors but they've been upstaged Rural communities will have fewer banking services as Bendigo Bank moves to wind down its agency model and step up e-banking across regional Australia. It will shutter its limited banking services available via third parties such as news agencies and post offices in rural areas around Australia by the end of the year. See full list of closures: Twenty-eight Bendigo Bank agencies across NSW, Victoria, Queensland, South Australia and Western Australia will close this year. Bendigo Bank's chief customer officer, Taso Corolis, said it was a "difficult decision" made from "evolving customer preferences". Mr Corolis said the bank would "proactively" support customers, including by walking them through e-banking services. Murrumbidgee Council deputy mayor Robert Black said the community was "very very angry". The NSW Riverina council area has two agencies, Jerilderie and Darlington Point. He said the closure of the agencies comes after the loss of other services in the area, such as the local butcher, newsagency and hairdresser. "What will be next?" he asked. Cr Black said it would be rural residents who would bear the cost, including travelling between 30-150km to get to the next branch. "There is no compensation for rural residents," he said. "It's another one of the penalties for living in rural communities." He blamed the federal government's water buyback, which he said had seen rural communities "shrink". READ MORE: Professionals with highest salary growth in Australia Lachlan Shire Council mayor John Medcalf echoed the disappointment, adding there had been a lack of consultation. The NSW Central West Council will lose the Cargelligo and Condoblin agencies. "It will be especially hard for the elderly," he said. "It was sold to customers as a community bank; the more people invested in the community, the more dividends the community would get out of it." READ MORE: Baby Boomers are crypto's fastest-growing investors but they've been upstaged Rural communities will have fewer banking services as Bendigo Bank moves to wind down its agency model and step up e-banking across regional Australia. It will shutter its limited banking services available via third parties such as news agencies and post offices in rural areas around Australia by the end of the year. See full list of closures: Twenty-eight Bendigo Bank agencies across NSW, Victoria, Queensland, South Australia and Western Australia will close this year. Bendigo Bank's chief customer officer, Taso Corolis, said it was a "difficult decision" made from "evolving customer preferences". Mr Corolis said the bank would "proactively" support customers, including by walking them through e-banking services. Murrumbidgee Council deputy mayor Robert Black said the community was "very very angry". The NSW Riverina council area has two agencies, Jerilderie and Darlington Point. He said the closure of the agencies comes after the loss of other services in the area, such as the local butcher, newsagency and hairdresser. "What will be next?" he asked. Cr Black said it would be rural residents who would bear the cost, including travelling between 30-150km to get to the next branch. "There is no compensation for rural residents," he said. "It's another one of the penalties for living in rural communities." He blamed the federal government's water buyback, which he said had seen rural communities "shrink". READ MORE: Professionals with highest salary growth in Australia Lachlan Shire Council mayor John Medcalf echoed the disappointment, adding there had been a lack of consultation. The NSW Central West Council will lose the Cargelligo and Condoblin agencies. "It will be especially hard for the elderly," he said. "It was sold to customers as a community bank; the more people invested in the community, the more dividends the community would get out of it." READ MORE: Baby Boomers are crypto's fastest-growing investors but they've been upstaged Rural communities will have fewer banking services as Bendigo Bank moves to wind down its agency model and step up e-banking across regional Australia. It will shutter its limited banking services available via third parties such as news agencies and post offices in rural areas around Australia by the end of the year. See full list of closures: Twenty-eight Bendigo Bank agencies across NSW, Victoria, Queensland, South Australia and Western Australia will close this year. Bendigo Bank's chief customer officer, Taso Corolis, said it was a "difficult decision" made from "evolving customer preferences". Mr Corolis said the bank would "proactively" support customers, including by walking them through e-banking services. Murrumbidgee Council deputy mayor Robert Black said the community was "very very angry". The NSW Riverina council area has two agencies, Jerilderie and Darlington Point. He said the closure of the agencies comes after the loss of other services in the area, such as the local butcher, newsagency and hairdresser. "What will be next?" he asked. Cr Black said it would be rural residents who would bear the cost, including travelling between 30-150km to get to the next branch. "There is no compensation for rural residents," he said. "It's another one of the penalties for living in rural communities." He blamed the federal government's water buyback, which he said had seen rural communities "shrink". READ MORE: Professionals with highest salary growth in Australia Lachlan Shire Council mayor John Medcalf echoed the disappointment, adding there had been a lack of consultation. The NSW Central West Council will lose the Cargelligo and Condoblin agencies. "It will be especially hard for the elderly," he said. "It was sold to customers as a community bank; the more people invested in the community, the more dividends the community would get out of it." READ MORE: Baby Boomers are crypto's fastest-growing investors but they've been upstaged
Perth Now
5 days ago
- Business
- Perth Now
Thousands of Aussies to lose bank service
Dozens of regional communities will be left without a bank after Bendigo Bank announced it was axing its agency model, saying the current system can no longer be supported. A total of 28 agencies across NSW, Victoria, Queensland, South Australia and Western Australia stop operating from October, while 10 branches in Victoria, Queensland and Tasmania will shut their doors from August. The agency model, established more than 30 years ago, allowed Bendigo to offer 'limited banking services via third parties in areas where there was not enough customer demand to sustain a branch'. 'Following a review, Bendigo Bank has concluded that its agency model can no longer be supported due to decreasing customer use and other relevant factors and will be retired from October 2025,' the bank said in a statement. Bendigo Bank announced 28 of their agencies would be closing in October. NewsWire / Paul Jeffers Credit: NewsWire 'The bank apologises to customers that use these agencies for any inconvenience.' Bendigo Bank's chief customer officer consumer, Taso Corolis, said the decision had been informed by 'limited use of these services' and 'an increase in costs and compliance obligations'. 'Bendigo Bank operates more branches per customer than any other Australian bank and Australia's second largest regional branch network,' he said 'We are proud of our regional heritage and are committed to providing face-to-face banking services for our customers. 'To preserve what makes our bank unique, we must prioritise our investments across both physical and digital channels to continue meeting the changing needs and growing expectations of our 2.7 million customers.' Bendigo Bank has told customers they will be closing 28 of its agencies across the country. NewsWire / Roy VanDerVegt Credit: News Corp Australia He said the bank would help customers adjust to the change. 'This may be in the form of connecting them with their closest alternate service, including nearest branch or Bank@Post locations, and walking them through e-banking services available, when required,' he said. The move is sparking outrage in regional communities, who may now long drives if they wish to attend a branch in person. One such affected community is Queenstown on the west coast of Tasmania. The Bendigo Bank is the last dedicated physical bank branch in town and residents now face a two and half-hour drive to the closest bank. Speaking in the Senate on Wednesday night, Queensland and One Nation Senator Malcolm Roberts warned of the impact the closure of that branch would have. One Nation Senator Malcolm Roberts has raised the closure of Bendigo Bank services in the Senate. NewsWire / Martin Ollman Credit: NewsWire 'This is not only the last bank in town. It's the last bank on the entire West Coast of Tasmania,' Roberts said. 'The locals will have no choice and will be forced to drive two and a half hours over icy mountain roads to the next closest bank in Burnie.' Senator Roberts said he was 'having to raise' it because Tasmania's senators had 'ignored' the issue. He accused the Albanese government of ignoring the senate inquiry into regional banking, which had made a number of recommendations, 'The government was supposed to respond within 90 days. It's been 14 months and the government has simply ignored it,' Senator Roberts said.
News.com.au
5 days ago
- Business
- News.com.au
Bendigo Bank closing down agency model, leaving dozens of towns without banking service
Dozens of regional communities will be left without a bank after Bendigo Bank announced it was axing its agency model, saying the current system can no longer be supported. A total of 28 agencies across NSW, Victoria, Queensland, South Australia and Western Australia stop operating from October, while 10 branches in Victoria, Queensland and Tasmania will shut their doors from August. The agency model, established more than 30 years ago, allowed Bendigo to offer 'limited banking services via third parties in areas where there was not enough customer demand to sustain a branch'. 'Following a review, Bendigo Bank has concluded that its agency model can no longer be supported due to decreasing customer use and other relevant factors and will be retired from October 2025,' the bank said in a statement. 'The bank apologises to customers that use these agencies for any inconvenience.' Bendigo Bank's chief customer officer consumer, Taso Corolis, said the decision had been informed by 'limited use of these services' and 'an increase in costs and compliance obligations'. 'Bendigo Bank operates more branches per customer than any other Australian bank and Australia's second largest regional branch network,' he said 'We are proud of our regional heritage and are committed to providing face-to-face banking services for our customers. 'To preserve what makes our bank unique, we must prioritise our investments across both physical and digital channels to continue meeting the changing needs and growing expectations of our 2.7 million customers.' He said the bank would help customers adjust to the change. 'This may be in the form of connecting them with their closest alternate service, including nearest branch or Bank@Post locations, and walking them through e-banking services available, when required,' he said. The move is sparking outrage in regional communities, who may now long drives if they wish to attend a branch in person. One such affected community is Queenstown on the west coast of Tasmania. The Bendigo Bank is the last dedicated physical bank branch in town and residents now face a two and half-hour drive to the closest bank. Speaking in the Senate on Wednesday night, Queensland and One Nation Senator Malcolm Roberts warned of the impact the closure of that branch would have. 'This is not only the last bank in town. It's the last bank on the entire West Coast of Tasmania,' Roberts said. 'The locals will have no choice and will be forced to drive two and a half hours over icy mountain roads to the next closest bank in Burnie.' Senator Roberts said he was 'having to raise' it because Tasmania's senators had 'ignored' the issue. He accused the Albanese government of ignoring the senate inquiry into regional banking, which had made a number of recommendations, 'The government was supposed to respond within 90 days. It's been 14 months and the government has simply ignored it,' Senator Roberts said.
ABC News
6 days ago
- Business
- ABC News
Bendigo Bank to close 28 agencies around the country
Bendigo Bank has announced that it will be shutting down its agency model, which allowed customers to access banking services from smaller locations such as newsagencies, citing "decreasing customer use" as a factor. Twenty-eight Bendigo Bank agencies across New South Wales, Victoria, Queensland, South Australia and Western Australia will close from October 2025. In a statement, Bendigo Bank said its agency model was established 30 years ago and "enabled the bank to offer limited banking services via third parties in areas where there was not enough customer demand to sustain a branch". Bendigo Bank's chief customer officer, consumer banking, Taso Corolis, said the decision was the result of changing customer preferences, which had led to reduced business activity, limited use of services, and increased costs and compliance obligations. "To preserve what makes our bank unique, we must prioritise our investments across both physical and digital channels to continue meeting the changing needs and growing expectations of our 2.7 million customers," Mr Corolis said. "We understand it may take time for some customers to adjust to these changes, and we will support them through this. "We are proactively supporting customers affected by the closures and will offer them assistance." Mr Corolis said the bank would be connecting customers with their closest alternate service. For the regional Queensland town of Taroom, about 470 kilometres west of Brisbane, the agency closure is a blow to locals' financial security. The agency's closure in Taroom will leave the town of about 800 people with the Australia Post outlet as its only in-person banking option. The next Bendigo Bank branch is a two-hour drive to Mundubbera. Taroom's overarching Bendigo Bank branch held a community meeting on July 16 to alert locals to the decision. It was a shock for the more than 100 locals in attendance. "[Bendigo Bank has] been in our town for 10 years; all the other banks have packed up and gone," attendee Steve Clarke said. "The post office is not suitable for anyone who is a bit frail or on walkers. You can't get into the building. "Where do we go from here?" Federal member for Flynn Colin Boyce attended the Taroom community meeting. He said he had concerns for the safety of locals when money was being moved. "Post offices are only allowed to withdraw $2,000 as a maximum amount. "And the problem with small communities when you have local races, shows and businesses, it's now a 400 kilometre round trip to the bank." Despite the decision being described as permanent by Bendigo Bank's public statement, the Taroom community was seeking an audience with the bank's headquarters. "All we can do is try," Mr Boyce said. "Electronic banking is all about communication … when you live in these small rural communities, communication is somewhat suspect. "To do online banking, a lot of the time it doesn't work because of the lack of communication." Alpine Shire Council Mayor Sarah Nicholas said the announcement was disappointing for regional communities that needed local services. Alpine Shire will lose the Bendigo bank agency in Myrtleford, in Victoria's north-east. Cr Nicholas said it did not make sense to reduce services because the Alpine Shire was vibrant and growing. She said residents in Myrtleford still had the option of a Commonwealth Bank branch, which nearly closed but amended its model to stay open. Cr Nicholas said she had noticed people in her community changing financial institutions as banks closed down. She said it was important that the digital skills gap was recognised. "It's fine for the digital natives who are coming through, and they absolutely know how it all works, but people who have to build those skills up later in life often find it difficult to navigate," she said.
