Imagine feeling completely cut off from essential services, forced to travel vast distances just to manage your finances. That's the reality facing many Australians as People First Bank, a community-owned institution, makes a move that has sparked outrage. The bank is closing numerous branches, leaving customers stranded and raising serious questions about its commitment to the communities it serves.
People First Bank is under fire for allegedly abandoning its customers. The bank plans to shutter 15 branches and three agency outlets across the country. This decision is particularly stinging because it directly contradicts a promise made in 2022 that there would be no further branch closures following a merger.
The Financial Sector Union (FSU) has revealed that the number of branches has plummeted by 40 percent since the merger of People’s Choice Credit Union and Heritage Bank in 2023. Julia Angrisano, the FSU's national secretary, pulls no punches, stating that the bank's actions contradict its claims of supporting customers and communities. She highlights the irony of communities losing vital banking services while the bank continues to report increasing profits.
"Bank branches are not a luxury, they are essential infrastructure," Angrisano emphasizes. "Without government action, we will continue to see towns abandoned and workers paying the price."
The branches slated for closure include: Coomera, Hervey Bay, Kawana Waters, Kippa-Ring, Macquarie Park, Millmerran, Oakey, Pittsworth, Runaway Bay, Toowoomba Range, Tweed Heads, Wilsonton, Blackwood, Millicent, and Caroline Springs. Additionally, the Laidley, Goondiwindi, and Maryborough agency outlets will also be closed. The last day for customers to visit these branches and agency outlets will be March 12.
But here's where it gets controversial... Customers will now be required to travel up to 150km to reach their nearest People First Bank branch. The towns of Oakey and Pittsworth in Queensland will be left without any bank branches. Angrisano highlights the devastating impact on older customers, people with disabilities, and small businesses that rely on in-person banking.
People First Bank's chief customer officer, Maria-Ann Camilleri, calls the closures a "difficult decision," citing the dramatic shift in how people use banking services. She points out that less than 1 percent of transactions occur in branches and fewer than 0.7 percent of customers regularly use a branch.
Camilleri denies that profit is the driving force behind the closures, claiming the bank is adapting to changing customer preferences. However, the Union claims the bank's profits increased by 7 percent in the last financial year, undermining the argument that the closures are financially necessary.
People First Bank assures that all employees at the affected branches will be offered alternative roles within the bank. In-person banking and cash access will remain available through alternative options, including ATMs, EFTPOS, Australia Post banking services, and other branches. Online support via the app and internet banking will be available 24/7, including dedicated support lines for six weeks after the March 12 closure.
What do you think? Is People First Bank prioritizing profits over its customers? Do you believe the bank is truly adapting to changing customer preferences, or is this a sign of something else? Share your thoughts in the comments below!
