The rate of bank branch closures in Australia is accelerating, with more than 10 per cent of branches closing over the year to June 2023. And despite widespread concern about regional branch closures, it is in the cities where customers are feeling the biggest impact.
APRA reported in its latest survey of authorised deposit-taking institution points of presence that the number of branches fell 10.6 per cent to 3588 in the year to June. The figures go back to 2017 and it is the first year that closures exceeded 10 per cent.
Over the six years since 2017, the number of branches has fallen by 37 per cent.
Regional branch closures have been in the spotlight, with the Senate Rural and Regional Affairs and Transport Committee inquiring into the matter.
APRA reported that branch numbers in “inner regional” Australia fell 7.7 per cent to 892 in the year to June and by 32.4 per cent over six years. Branch numbers in “outer regional” Australia fell by 6.7 per cent to 531 year-on-year and by 35 per cent over six years.
Numbers in “remote” and “very remote” areas fell 6.8 per cent to 138 year-on-year and by 37.8 per cent over six years.
Numbers in the major cities were down 12.9 per cent to 2027 year-on-year and 39.2 per cent over six years.
ATM numbers are falling even faster – down 11.2 per cent to 5693 in the year to June and by 58.8 per cent over six years.
The number of other face-to-face points of presence, which is mainly Bank@Post outlets, increased by 0.2 per cent to 4466 in the year to June. Numbers have fallen 6.9 per cent over the six years.
Point of sale terminal numbers appear to be in decline – down 2 per cent to 699,522 in the year to June and by 12.7 per cent over six years.
But the APRA figures do not include devices issued by non-bank financial institutions. Companies like Square are picking up share in the payment terminal market, at the expense of the banks, and their terminal numbers are not included in the survey.