In a renewed effort to strengthen ties with rural communities, Westpac will keep regional branches open for seven more years, outpacing other banks whose moratoriums end in mid-2027. Alongside this, it is trialling a model where bankers visit rural towns every fortnight, operating from council buildings or libraries. This setup aims to provide face-to-face service without the need for permanent branches that require significant investment.
Towns across Australia have frequently raised concerns about the closure of local branches, which has forced many residents to travel long distances for everyday banking. In the past five years, 23% of branches in inner regional areas and 19% in outer regional towns have shut. These closures have led to public outcry and government discussion about imposing a levy on banks to fund rural services, a measure Westpac opposes in favour of more direct and localised solutions.
The new initiative will begin with a pilot program in five towns, including Dungog in New South Wales. A dedicated banker will visit each location once a fortnight, offering in-person services such as assistance with business lending, mortgage support and PIN changes. These services are not available through Australia Post, where some banks have outsourced basic banking.
There is growing demand to bring back human interaction in banking, particularly for individuals who are not proficient with digital tools. Although only 4% of Westpac's customer interactions occur face-to-face, the bank acknowledges the importance of this support for older clients and those in vulnerable situations. In addition to its mobile service model, Westpac is reopening or upgrading selected branches in rural Australia, including new sites in Moree, Leongatha and Smithton. It is also allocating $65 million to refurbish 50 regional branches.
Westpac's announcement may compel other major banks to reconsider their scheduled branch closures. Meanwhile, the federal Treasury is exploring other ways to maintain rural banking, such as reallocating $153 million each year from major banks to smaller regional lenders. Westpac argues this approach is inefficient and unnecessarily expensive.
The bank is also expanding its investment in regional areas, committing $1.5 million annually to local events and sponsorships. It is further developing career pathways in towns like Tamworth, Bendigo and Launceston by offering fast-tracked promotions in agribusiness and regional banking roles.
