Banks set to rein in Victorian branch services

George Lekakis

Leading banks say they plan to keep branches open in Victoria for the time being but won’t rule out temporary closures if tighter lockdown measures reduce customer demand for over-the-counter services.

Branch banking is classified as an essential service and thus excluded from the list of industries earmarked for closure under new restrictions triggered by Melbourne’s worsening Covid-19 crisis.

The forced closure across metropolitan Melbourne of most retail premises, including shopping malls, along with the restrictions on human movement, are set to whittle demand for branch services in the coming six weeks.

However, banks with extensive networks in Victoria indicated to Banking Day last night that they had no immediate plans to temporarily close branches during the lockdown but would review their operation on a case by case basis.

Some branches will probably have to close because they are located in shopping malls that are likely to deserted from Thursday.

Bendigo and Adelaide Bank, which operates the third largest retail branch network across the state, says it is aiming to keep its network open but may be forced to close some branches or at least prune operating hours.

“We have clear safety measures in place and will continue to assess the level of risk and take reasonable and appropriate actions to protect our staff and customers, based on the latest expert advice,” said Bendigo chief executive, Marnie Baker.

“This may involve branch closures or a reduction in hours in some circumstances if this is considered an appropriate precaution.

“The safety and wellbeing of our customers, employees and their communities is our priority and we’re here to continue supporting our customers as we have done throughout the pandemic.”

The opening hours of some Commonwealth Bank branches have been affected by staff shortages this week, but a CBA spokesman said the bank planned to keep its network operating.

CBA, which currently has 215 branches in Victoria, could reduce the opening hours of some outlets if there is a significant drop off in demand at certain locations.

ANZ, which operates about 140 branches indicated it would review the operation of its network as the lockdown takes effect.

“We’re currently working through what this means for our customers and how we can best support them,” said an ANZ spokesman.

The extension of lockdown measures to regional Victoria could prove challenging for National Australia Bank, which in the last two years has rostered staff to work at multiple sites within its branch network.

That could impose significant pressure on NAB to keep its branches open given that there is now heightened health risks for workers being deployed to multiple workplaces.

NAB head of personal banking Rachel Slade last month announced plans to slash the operating hours of 114 regional branches across Australia from the middle of this month.