Regional Australian Bank Closures By Bob Farmer
The Senate inquiry into bank closures and cashlessness has had a public hearing at Junee, about 45 kilometres from Wagga Wagga, to get a taste of what rural Australia thinks about the state of banking and all the agendas that are now being played out. Banks have been closing, and there was only a last-minute pause by the last remaining bank, the Commonwealth Bank. The inquiry heard from older Australians who were not fully computer illiterate, that the move to a cashless system would leave such older people vulnerable to scams and mistakes for which in the on-line world there is no forgiveness, only financial disaster. Senator Canavan said:
"There has to be a role for government oversight here … to pull in those private organisations to serve the social goods, like providing a central service," he said.
"The banks are rapacious, private, profit-making institutions and they're probably going to remain that way."
But the government wants a cashless Australia as its move to a Central Bank digital currency, so don’t expect anything much from them. Only people power, with people moving their money out of the cashless banks, to a bank that is not going cashless would make the rapacious think again.
“Regional bank closures are "ripping the heart out of country towns", according to the chair of a federal inquiry.
Key points:
- Senator Matt Canavan says the inquiry will examine solutions to the issue
- The inquiry heard that elderly people in particular are concerned about doing their banking online
- A social worker says those with no choice but to travel to a branch can start to feel anxious and "worthless"
The senate committee has ventured into country New South Wales for the first time to hold a public hearing in Junee, about 45 kilometres from Wagga Wagga.
Junee has lost multiple banks over the last decade and the town's last branch, operated by the Commonwealth Bank of Australia, was set to shut down in March before the company suddenly paused regional closures.
Resident Barbara Guthrie does all her banking in person and says it would be "a disaster" if the branch closed.
"It would be for all our age group — most of us are not computer-minded," she said.
"There would be so many people left out in the cold."
More than 1,200 bank branches have shut down in Australia over the past six years as the nation transitions to online banking.
Ms Guthrie said online financial management was a frightening prospect for elderly residents because of the risk of scams and errors.
"You can make a mistake and you can be in a lot of trouble and your money is gone," she said.
'Feeling of being worthless'
The inquiry heard the move to online banking would force many Junee residents to travel 30 minutes to Wagga Wagga.
Junee Community Centre Jacqui Stevens said that would be a significant hurdle for those unable to drive or living with disabilities.
"If you're on a restricted licence or you don't have a car you cannot get to Wagga because public transport is not consistent here – it's very, very limited," she said.
"That's when you increase the amount of anxiety and the feeling of being worthless starts to creep in, because you have to rely on formal supports."
Ms Stevens told the inquiry visits to the bank were a vital social outlet for many residents and their removal would erode the town's social fabric.
Inquiry chair Matt Canavan said it was clear banking closures were causing significant knock-on effects for communities and needed to be seriously addressed.
"It's effectively ripping the heart out of country towns," he said.
"Things are obviously changing, but I think the lazy way is to shut the branch and leave town."
'Rapacious' institutions
Senator Canavan said it was up to the inquiry to find a solution.
"There has to be a role for government oversight here … to pull in those private organisations to serve the social goods, like providing a central service," he said.
"The banks are rapacious, private, profit-making institutions and they're probably going to remain that way."
Senator Canavan said the multiple solutions that had been suggested over the course of the inquiry would be considered in the final report.
These included strengthening the banking code of practice, improving the banking capabilities of post offices, establishing an independent banking assessor and providing government funds to towns trying to form a community bank.
Ms Guthrie said the Junee community would continue fighting the potential closure of the town's last bank.
"The big fellas sitting up in the city, they don't realise what the country is like," she said.
"We need these services.
"We made a lot of noise and we will still make a lot of noise until we get an answer out of it."”
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