iscover
iscover 
The Australian Banking Association (ABA) has announced the implementation of a new protocol, starting from 1 July, which will govern the procedures banks must follow when closing branches across the country.
The Branch Closure Support Protocol aims to improve communication and provide greater protection for customers who require face-to-face support.
The introduction of the protocol followed the recommendations of the federal government Regional Banking Taskforce inquiry into branch closures.
The taskforce, initiated by the former Morrison government in October 2021 and concluded by the Albanese government in September 2022, emphasised the need for the ABA to review and strengthen its branch closure protocol and introduce a “customer-care standard” by mid-2023.
ABA chief executive Anna Bligh said the work to update its process has now been done and the protocol is now live.
“There’s a number of things that will change; firstly, banks have taken on a commitment to do a lot more work with customers, in terms of the alternatives that will be available to them when a bank branch closes — including helping them understand what they can do at Australia Post,” Ms Bligh said.
“It will also mean that banks will have to prepare and publish a document that explains why they’ve closed that branch, including some of the data about the usage of the branch.”
This will also help customers understand the factors contributing to the decline in bank branches.
“I should say we anticipate seeing branches as a part of Australia’s banking system for a very long time,” Ms Bligh said.
While the number of branches in Australia has decreased over the past 20 years, Australia has one of the highest rates of branch density in the OECD — with 24 bank branches per 100,000 adults, ABA data revealed.
Ms Bligh said bank branches still hold an important function in Australia, for example, supporting borrowers wanting to take out a mortgage.
“So there is an important role for branches, but less and less it’s going to be about withdrawing and depositing cash,” she added.
“It’s not about closing all branches, but we do expect from time to time, there will be some branches closing as more and more Australians choose to bank differently. So this is about helping people through that transition.”
Ms Bligh acknowledged the “digital revolution” taking place in the banking industry, with nearly all customer interactions (98.9 per cent) now occurring digitally.
The new protocol “fully implements” the Regional Banking Taskforce’s principal recommendations and includes:
- A new Customer Care Standard that will require banks to:
- Offer education, training, and assistance to customers of a closing branch to transition to other banking options
- Support vulnerable customers who may require additional assistance (such as digital)
- Provide language support where appropriate
- Support customers who retain a preference for face-to-face banking services to transition to Bank@Post (for customers of participating banks)
- Banks will now have customer support obligations when they close a branch and the distance to their next branch is 10km away — halving the current threshold of 20km.
- Customer support obligations will no longer be limited to regional branch closures — in recognition that distance, not geography is the main driver of inconvenience when a bank branch closes.
- Preparation and publication of Branch Closure Impact Assessments — a transparency measure to help customers and the community understand the reasons for the closure decision.
- Notification requirements — not just to customers — but also key local stakeholders such as MPs, local government, and other community representatives including First Nations groups.
The introduction is expected to ensure better communication and transparency when it comes to bank branch closures in the future.
[Related: Banks told to do more amid regional closures]
ISCOVER 
