Yahoo Finance Banks defend branch closures: ‘Rubbish’
More than 1,600 bank branches have closed in the past six years.
The major banks have been grilled at a Senate inquiry over the 1,600 branch closures that have occurred over the past six years - but the CEO of the Australian Banking Association, Anna Bligh, has vehemently defended the decision.
In an interview with the ABC, Bligh said the branch closures had nothing to do with profitability and everything to do with the world becoming more digital.
“I think there are some people who are very attached to the way that banks did business in the 1990s. But most customers have jumped into the new world with a huge degree of enthusiasm,” she said.
Also read: ANZ boss slams Aussies ‘bemoaning’ branch closures: ‘They don’t use them’
Also read: ANZ slammed over branch closures: ‘Clearly don’t care’
“Once upon a time, you only had one way of banking, and that was to go physically to a branch. Now, you can do phone banking, internet banking, banking on your app, you can have mobile bankers, you can do a home loan on a video conference.
“So, you’ve got more services at more times than you’ve ever had before, whether you live in the most remote parts of Australia or in the middle of a capital city.”
Bligh’s comments ‘rubbish’
The exchange between ABC host Hamish MacDonald and Bligh got tense when the journalist pointed out that bank’s tended to drive consumers towards using online services.
“Are you saying that we customers are driving this?” MacDonald asked.
“You make us - anytime we need to operate in it or interact with the bank - you’re the ones that drive us online or tell us to talk to a chatbot first or do it over the phone. And it’s not consumers choosing this,” MacDonald said.
But Bligh shot back at those comments.
“Hamish, did someone force you to get a banking app? Really? You don’t find that more convenient? You can do your banking anytime of the day now,” she said.
MacDonald said there were many Australians who would much prefer to speak to an actual person than talk to a chatbot.
“To say this is all because it’s what we want as consumers, that’s rubbish,” he said.
‘Not honest’ to go back to physical banking
Bligh said things would likely never go back to how they were, and while change was “tough” it must be accepted.
“Change is hard for some people, but there’s whole generations that have never been into a bank branch,” she said.
“We’ve got bank branches now in some parts of Australia where they’re doing eight transactions a day with two staff. That’s not a satisfying job for those staff. And it’s not an efficient use of bank resources.
“It’s a tough transition whenever you have a big change like this, but pretending it’s not happening, pretending we can go back to the 1990s … it’s just not honest.”
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