I needed to close some bank accounts last week that I no longer use, and to my surprise, I had to go into a bank branch to complete the closure. I have been doing all of my banking online for years, so I can't remember the last time I went into a bank branch. So I searched the web for the closest branch and took time off over lunch to go there.
Customers complete most, if not all, of their financial transactions digitally, which creates a waning demand for bank branches. Last year, the four big banks in Australia closed over 350 branches. One of these big four bank's authorise six million online transactions most days, with only 30,000 transactions being done in a branch.
Unfortunately, the closure of bank branches is leaving many people, particularly the elderly, in a state of distress as they are now forced to go further afield to suburbs outside their region to find a bank that will serve them. Though there will always be a place for bricks and mortar branches - they'll be fewer and far between.
As it turned out, the bank branch I went to close my accounts was closing that day.
