The Regional Banking Investment Alliance (RBIA) has welcomed the newly merged G&C Mutual Bank and Unity Bank to their group advocating for a community service obligation (CSO) to keep regional bank branches open.
The advocacy group recently presented a cost sharing model to the government and Treasury, proposing banks contribute to a fund to help subsidise some of the staff costs in maintaining face-to-face services in regional and remote areas of Australia.
The cost sharing model presented by the alliance of regional banks has gained momentum, including interest from a number of banks outside the group. Unity Bank CEO, Danny Pavisic said the model has potential to make a real difference in regional communities.
“We service members across the country who value the ability to be able to go into one of our service centres and speak to real people, with real advice and real solutions. The cost sharing model proposed by the RBIA allows regional banks a realistic opportunity to not only keep their current face-to-face services but to ensure the ongoing financial inclusion of those living in regional areas”, said Mr Pavisic.
CEO of Queensland Country Bank and RBIA spokesperson, Aaron Newman highlighted the struggle that regional banks can face: “We are passionate about servicing our local communities and keeping the profits local, but it’s really tough when we are competing against giants, who are not doing the same.
“Around 30% of transactions in our banks lead to pass through banking, seriously disadvantaging our ability to compete and expand. We just want the banks who are neglecting the regions to pay their fair share in keeping face-to-face services alive.”
The CSO initiative would be funded by the banking industry via existing financial sector levies and amount to around $153 million, or 0.17% of the total operating income of the major banks.
Under the RBIA proposal, bank branches receiving the CSO contribution would need to meet criteria that the community generally expects from retail branch services, such as cash handing, home loans, transaction accounts, and term deposit management, as well as trained staff to offer advice and support.
The contribution would be directly linked to trained full time employees, ensuring face-to-face services are maintained.
With the inclusion of the G&C Mutual Bank and Unity Bank brands, the RBIA includes member banks across New South Wales, Queensland, Victoria, the Northern Territory, South Australia and Western Australia.
About us:
The RBIA is made up of 23 regional banks, including: Regional Australia Bank, The Capricornian, Traditional Credit Union, Broken Hill Bank, Northern Inland Credit Union, Cairns Bank, The Mutual Bank, Central Murray Bank, Bank Orange, Summerland Bank, Horizon Bank, Geelong Bank, Family First, Darling Downs Bank, Bank WAW, SWSbank, Hume Bank, Goulburn Murray Credit Union, Central West Credit Union, Queensland Country Bank, Coastline Bank, G&C Mutual Bank and Unity Bank.
Early supporters include the Country Women’s Association of NSW, National Seniors Australia, Combined Pensioners & Superannuants Association and Regional HQ.
More information can be found at: https://rbialliance.com.au/
Contact details:
Warwick Ponder – 0408 410 593, [email protected]
Gabby Taylor – [email protected]
Rachel St Clair - [email protected]