Australian banks propose regional hubs to combat branch closures

The Australian Banking Association (ABA) has proposed a plan to the Australian Competition and Consumer Commission to trial multi-bank hubs in regional and rural areas. The initiative aims to preserve face-to-face banking services by sharing the costs of physical infrastructure among participating banks, a model already utilized in the United Kingdom and New Zealand.

This proposal follows a significant decline in regional banking, with approximately 850 branches closed across rural Australia between 2017 and 2025, leaving an estimated 600 towns without a branch. ABA chief executive Simon Birmingham noted that while digital transactions are rising, many customers still require in-person services.

Amid these industry-wide discussions, the Commonwealth Bank is scheduled to close its Albion Park branch on November 6. Although the bank recently pledged to keep all regional branches open until 2030, a spokesperson clarified that the Albion Park location is classified as metropolitan under the Accessibility/Remoteness Index of Australia (ARIA+) framework, exempting it from the regional moratorium.