RBIA Urges Immediate Action on Bank Services
Australia’s regional areas face significant economic challenges as bank branch closures lead to $1 billion in annual losses and nearly 4,000 job cuts, according to the Regional Banking Investment Alliance (RBIA). Over the last nine years, there has been a 38% reduction in bank branches in regional and remote Australia, translating to about 900 closures.
Regional banks, small businesses, and community supporters are urgently advocating for a bank-funded cost-sharing model to restore essential banking services in remote communities. The Alliance proposes that this model does not require taxpayer money and aims to ensure banks fulfill their obligations to the community.
Measures like the ‘moratorium’ on closures until 2027 and Bank@Post services have been deemed inadequate by the RBIA. These measures are seen as band-aid solutions that mask ongoing service reductions.
David Heine, CEO of Regional Australia Bank, emphasised the importance of face-to-face services, stating they are part of a bank’s social licence to operate in Australia. He said, “Many are abandoning that responsibility. Face-to-face banking services are not a ‘nice to have’ – they provide essential services and trained personnel to cater for needs of the people and businesses in our regional and remote communities.”
Proposed Solutions for Service Decline
The RBIA’s proposed cost-sharing model aims to redistribute bank funds to support regional staff, countering the trend of service decline. This initiative seeks to reverse the unfair cross-subsidy where banks that remain in regional areas provide face-to-face services without adequate support.
Aaron Newman, CEO of Queensland Country Bank, highlighted their commitment to maintaining a local presence. He said, “While others are stepping back, we’re continuing to invest in our branch network.”
Community backlash has led Federal Parliament to conduct two inquiries. Both concluded branches are essential and solutions are needed to keep them in regional areas. However, no meaningful policy has been implemented yet.
Consultations with community and business groups, politicians, and Treasury have been held by the RBIA to discuss the proposed model. Efforts by the alliance include a petition to garner community support for the initiative.
Some of the fastest-growing banks, supported by taxpayer protections, provide no face-to-face regional branch support, exacerbating the issue. Banks have pocketed about $1 billion a year in cost savings from these closures, significantly impacting local communities.
Last updated: 28 April 2026, 12:19 pm
