Banks could do more to support customers through branch closures by helping them prepare for changes to how and where they access banking services, a Banking Code Compliance Committee inquiry has found.
The review of 13 branch closures across eight banks assessed compliance with the Australian Banking Association’s Branch Closure Support Protocol (the Protocol). It identified areas for improvement in communication, community engagement and practical assistance, alongside examples of better practice.
Banking Code Compliance Committee Chair Sean Hughes said customers needed timely information and support suited to their circumstances.
“Telling customers about alternative banking services is only part of the task. Banks also need to understand whether customers can use them and what support they need to make the transition,” Mr Hughes said.
“For someone with limited digital access or confidence, direct contact and hands-on assistance can make an important difference.”
The report found instances where banks did not meet all commitments under the Protocol. Three banks proceeded with closures despite some customers receiving as little as two weeks’ notice, while six did not provide education, training or assistance for customers facing barriers after closure.
The inquiry also identified opportunities to strengthen engagement with local stakeholders and community organisations.
“Customers must receive the notice they are entitled to and a meaningful opportunity to prepare,” Mr Hughes said.
“Banks should actively contact customers who may need extra support and engage local organisations that understand community needs.”
The inquiry identified a range of better practices already being used by banks, including hands-on training, clearer accessibility information and follow-up where communications had not reached customers.
“We welcome the improvements banks are already making in response to this review and encourage them to build on these practices when there further closures in the future,” Mr Hughes said.
The report also marks the first time participating banks have been named in a BCCC inquiry. The BCCC welcomes banks’ support for named reporting, which demonstrates industry’s commitment to greater transparency and strengthens the self-regulatory framework.
The BCCC will ensure the issues identified are addressed and continue monitoring compliance with the Protocol.
Read Branch Closure Report
About us:
Background
The Banking Code of Practice sits alongside Australia’s financial services laws and sets standards of service and conduct for subscribing banks.
The Code is owned and published by the Australian Banking Association.
The Banking Code Compliance Committee independently monitors and drives best practice implementation of the Code. It examines banks’ practices, identifies current and emerging industry-wide issues, recommends improvements and keeps stakeholders and the public informed.
Contact details:
