Lachlan Shire says “no” to bank closures in regional Australia
Published on 27 March 2023
As bank branches shut, residents and businesses are being left without access to financial services and Lachlan Shire Council is encouraging community members to make a submission to the inquiry into bank closures across regional Australia.
Mayor of Lachlan Shire, Cr John Medcalf OAM said, “It is particularly concerning for our community to witness the extraordinary profits being made by the banking industry, while service levels continue to be reduced.”
The theory behind bank branch closures is, that most transactions and business can now be done online. However, this is not necessarily true! There is poor internet usage in the Central NSW region with only 72 .45% of households connected to the internet, which is well below the NSW average of 82.5%.
“When people are forced to leave town to do their banking they also buy other goods and services which reduces the money circulating in our towns and villages. It has a significant impact on our local economy and puts our businesses at risk. Not to mention the effect on industry productivity as businesses and workers have to make time to travel further to access banking services,” Mayor Medcalf added.
The assumption by the banking institutions that online services are good enough to replace in-person banking is flawed. Rather, it is disabling regional communities. Some people feel forced to change banks with all its associated administration and lose any long-term customer benefits which can create - confusion and hardship.
“The most vulnerable in our communities are most impacted, and add to that the associated costs of travel and the road safety risk, where the more remote you reside the worse it is,” Mayor Medcalf said.
The true measure of any society can be found in how it treats its most vulnerable members. Policy and legislation ought to be put in place that ensures that essential services like banking be included in a broader Community Services Obligation framework.
“Submissions are due on 31 March 2023 and I hope our community will have a say. Ironically it is not as easy as sending an email or posting a letter. You have to go through an online login process at https://www.aph.gov.au/Parliamentary_Business/Committees/OnlineSubmission,” Mayor Medcalf said.