Banks propose shared hubs to keep regional branches open in Australia

The Australian Banking Association has submitted a plan to the Australian Competition and Consumer Commission to test shared banking hubs in country Australia, allowing several banks to operate under one roof. The trial would involve up to ten locations and a joint funding scheme to cover the expenses of brick-and-mortar services and related infrastructure. Simon Birmingham highlighted that while digital banking dominates, a segment of customers still prefers in-person interactions.

Regional branch visits have fallen sharply since 2019, and cash usage has declined dramatically over the past decade. Nearly 850 bank branches have closed across regional, rural and remote areas since mid-2017, leaving an estimated 600 towns without a bank. Major lenders such as Commonwealth Bank, Westpac, National Australia Bank and ANZ have pledged to maintain a moratorium on further closures through at least 2027, with ANZ's chief executive Nuno Matos expressing support for the hub concept.