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Bankwest's recent announcement of its branch closures by October 2024, transitioning some to CommBank operations, will undoubtedly have ramifications for the local Esperance community.
Source - https://www.bankwest.com.au/about-us/our-journey
Originally founded as the Agricultural Bank of Western Australia in 1895 to support local farmers, Bankwest has been through numerous transformations over the years, culminating in its acquisition by the Commonwealth Bank of Australia in 2008 for A$2.1 billion. Now, in the next stage of its evolution, Bankwest is set to transition to a purely digital banking service, reportedly to align with changing consumer behaviour and preferences, particularly the increasing demand for digital banking services.
The transition to online banking, while reflective of global trends towards digitalisation, does pose particular challenges for our local community. The presence of bank branches has traditionally extended beyond just financial transactions. A visit to the bank is a reason to visit town, and the bank serves as a communal hub encouraging social interactions and supporting social, emotional and psychological wellbeing.
The prospect of losing physical bank branches raises valid concerns about the impact on community cohesion and the accessibility of banking services, especially for those less comfortable with or unable to access digital platforms.
Image source - https://directmap.net/esperance/115#google_vignette
Bank branches traditionally attract a steady flow of people into town centres. For many local businesses in Esperance, from cafes and restaurants to retail shops, the presence of essential services such as the local bank branch and the post office, have created regular foot traffic.
Customers running banking errands often take the opportunity to shop locally, grab a cup of coffee, or engage in a recreational activity, thereby indirectly supporting a wide array of businesses. The removal physical bank branches could potentially lead to a noticeable decrease in foot traffic in town, impacting our small businesses who serve the community.
The closure of even one small business locally could set off a ripple effect, where reduced business for one affects all, potentially leading to a downturn in the local economy. As businesses face decreased patronage, the community could see a reduction in services and employment opportunities, further aggravating economic challenges.
Esperance's intermittent internet connectivity (at times) also raises questions about the feasibility of a seamless transition to online banking for all community members. Particularly for those who may live in isolated locations where internet connection is often poor. This situation underscores the need for inclusive planning and support to ensure that no one is left behind as we adapt to these changes.
There are alternate options for physical bank branches in Esperance at this time. These physical bank branches provide alternative options for residents and customers in Esperance to access banking services beyond Bankwest's digital-only model.
However, it is a timely reminder that we need to engage in a constructive dialogue around the future of physical bank branches in town. Particularly given we live in such an isolated community. The future of physical bank branches in Australia is likely to see a continued decline in numbers over time as customers increasingly shift towards digital banking services. The closure of bank branches and ATMs will likely continue as more customers abandon cash transactions in favour of digital alternatives.
However, physical bank branches are likely to remain to some extent to ensure access to banking facilities, especially in rural areas such as Esperance where physical infrastructure plays a crucial role in serving customers, particularly for business banking relationships.
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