A bank with more than 700,000 members in Regional Australia has announced that it will close more than a dozen branches and push customers to online banking.
People First Bank was formed by a merger of Heritage Bank and People's Choice Credit Union in November 2023.
Maximum 12 Heritage Bank branches in the southeastern Queensland and seven choice of passenger pockets in SA, Victoria and the NT close on 4 April.
Chief Customer Officer Maria-Ann Camilleri said the decision was 'carefully considered' and said it was customer-driven.
“Our customers are increasingly opting for ATMs, internet banking and our app for their daily banking, with branch use now good for less than 1 percent of all transactions,” said Mrs. Camilleri.
'This means that we again assign people and resources to areas with a higher descent, such as our 24/7 contact center, and investing in technology to meet the needs of customers with simple, convenient digital banking.
'For the vast majority that banks digitally, this change will have little to no impact.
“We have a series of available options for the small number of customers that use the affected branches so that they can keep banking with us.”
From April 4, a series of Heritage Bank branches (photo) will close their doors while the parent company is taking a big step to online banking
People First Bank (photo) is also planning to close Seven People's Choice Credit Union locations
The relocation of people first followed that of many other banks, with 41 percent of the physical banks that have closed their doors over the past six financial years, according to the Australian Prudental Regulation Authority.
About 800 of those closures were in regional areas, through which those who need a filiat service go through long journeys.
Financial sector Union National Assistant Secretary Jason Hall said that people's step was first “an attack on regional communities”.
“Although these are not the first branches of 2025, they are the biggest,” said Mr. Hall.
“It also really makes the depths of irony for a bank that first calls itself to start their new brand by cutting branches and staff, so that the people they claim to put in the first place.”
Mr. Hall said that the move was a “devastating abandonment” of the 700,000 members of people first.
The Heritage Bank branches that will close on April 4 are located in Beenleigh, Brookside, Capalaba, Indooroopilly, Noosa Civic, Nambour, Mermaid Waters, Nerang, Strathpine, The Pines Elanora and Victoria Point.
The People's Choice locations to be concluded are at SEAFORD, North Park, Victor Harbor, Gawler, Warrnambool, Maryvale and Darwin.
The group said that employees will get alternative roles within the bank.
It follows an announcement from the Bank of Queensland in recent weeks that it would close 14 of its branches in Queensland, Victoria, NSW and WA between 19 and 17 February.
