Westpac has vowed not to shut any regional branches until 2030 and will begin sending bankers into regional towns where it does not have a branch to help customers face-to-face. More than 1,500 branches have shut their doors in the last five years and banks have faced widespread criticism over the closures.
Ahead of the Big Four bank CEOs facing a grilling by the House of Representatives economics committee this week, Westpac has revealed it has extended its commitment not to close regional branches. The major bank hit pause on regional bank closures in 2023 and has now extended its moratorium from mid-2027 to 2030.
Westpac CEO Anthony Miller said the move followed a full review of the bank's regional banking services. It currently has 492 branches in Australia, nearly half the number it had five years ago, with a drop of 423 branches.
"Strong regional communities are vital for a strong Australia, and we want to make sure these areas have access to the services they need to prosper and grow," Miller said.
"We've conducted a coast-to-coast review of our services and are increasing our investment in key areas to help build stronger regions."
The federal government struck a deal with the Big Four banks in February, where they have each committed to keeping their regional banks open until at least mid-2027.
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This does not cover mid-tier banks like Bendigo and Adelaide Bank, which have come under fire for closing 10 regional branches and 28 agency locations in recent months. Some bank customers are now facing a four-hour round trip to their nearest branch.
An earlier solution floated by the government involved imposing a levy on banks with little or no regional presence, something which it is reportedly considering again.
The Regional Banking Investment Alliance, which represents 21 small banks with a physical regional presence, proposed a new model to the government in September, which would cost banks $153 million a year. This move is opposed by Westpac.
Westpac to trial face-to-face banking solution
Westpac will also begin trialling a new Community Banking Service in partnership with local councils and community organisations.
From early 2026, mobile bankers will regularly visit regional towns where the bank doesn't currently have any branches and work from council buildings. This may be weekly or fortnightly, depending on the town's needs. Customers can get help with general banking inquiries and referrals to specialist lenders.