Bankwest will close all its branches in October as the company transitions to a digital-only banking service.
The 130-year-old former Bank of Western Australia has 60 branches. Of those, 45 will close, while 15 in regional areas will be renamed Commonwealth Bank, which owns Bankwest.
The bank said the decision came after “rapidly changing customer preferences” and that removing its branch network would “unlock a number of long-term benefits for Western Australia”.
It said less than two per cent of customers visited a branch regularly and 97 per cent of transactions were now carried out digitally.
Bankwest said on average only 15 over-the-counter transactions were taking place each day in the WA region.
Nationals leader David Littleproud called the end of Bankwest’s physical presence a “broken promise” and said the CBA was being “complicated” and had always been keen to phase out Bankwest.
The decision comes amid a Senate inquiry into regional banking services, as banks abandon regional centers across Australia.
All Bankwest branches will be closed by their owner, Commonwealth Bank of Australia.
The Washington government sold Bankwest to the British Bank of Scotland in 1995, which in turn became part of the London-based Lloyds Banking Group. In 2008, Lloyds sold Bankwest to Commonwealth Bank for $2.1 billion.
CBA expanded the Bankwest brand to major East Coast cities as a challenger brand, despite being owned by the country’s largest bank. But then in 2018 it became a WA-only bank.
‘Difficult news’
Bankwest chief executive Jason Chan said he recognized the move would be challenging for some customers and that supporting customers through the change and retaining affected staff were his “top priorities”.
“It is critical that we prioritize investment for the majority of our customers who expect leading digital banking and brokerage services, and who rarely use branches, but we have a clear focus on the needs of our regular branch users at this time.”
Chan said Bankwest employees would have “opportunities to continue serving customers on digital channels”.
“Our branch colleagues have invaluable knowledge and experience, and will all be offered opportunities to access the next generation of banking jobs so they can continue to support customers across the country from their own communities,” he said.
Additionally, 500 CBA Group roles across technology, operations and customer service will move to WA “in support of Bankwest’s digital transition”.
“Bankwest is now 129 years old and we will continue to evolve over the coming years to ensure we remain a sustainable, growing and successful WA-based business, and a major WA employer, in a highly competitive national banking sector.”
Chan said there would be a “clear and distinct choice” for customers between CBA’s personal and business banking with branches and Bankwest’s “simple, easy digital and broking offering, focused on the needs of homeowners”.
Nationals leader David Littleproud has branded the end of Bankwest’s physical presence a “broken promise”.
‘Broken promise’
Nationals leader David Littleproud has branded the branch closures a “broken promise” by the CBA following its commitment not to close any Bankwest branches until 2026.
“Everything they’ve been is complicated and they’re playing with the fact that they have two brands here (in WA) and I get it, they wanted to merge them into one at some point,” he told 6PR radio. On Wednesday.
“But if you make a promise to the Australian people and you are the biggest bank in the country, then you deliver on it, otherwise you don’t have a social license to operate in this country.”
Mr Littleproud reiterated the difficulties the closures could cause for regional customers and said a network of post offices could be a solution.
“When you’re in the bush, you can’t get on a bus and go to the next suburb to get to an ATM,” he said.
Bankwest says declining demand for over-the-counter trading has led to the decision to close all branches.
“Cash is important, especially in regional and remote areas, so I think post offices have a role to play.”
State Opposition Leader and WA Nationals leader Shane Love said he had received “assurances” from Bankwest that communities would be given the opportunity to transition to CBA customers.
‘The proof of this good intention will come with time. At this point, Bankwest and CBA have committed to continuing to employ their regional staff and CBA will provide services in all communities where a Bankwest branch has so far been present,’ he said.
About 2,100 branches in all major banking institutions have been closed in the last six years.