‘Not a luxury’: Fury as community bank closes 15 branches, forcing some to drive 150km for services

A community-owned Australian bank has been accused of abandoning its customers after announcing it would close multiple branches - leaving some to drive up to 150km just to get face-to-face services.

People First Bank has been accused of putting its customers last after announcing it will close 15 branches and three agency outlets across the country.

This was despite a commitment made in 2022 that there would be no more branch closures as a result of the merger.

The Financial Sector Union says since the merger of People’s Choice Credit Union and Heritage Bank in 2023, the number of branches has slumped by 40 per cent.

FSU national secretary Julia Angrisano said People First Bank says they support customers and the communities, but their actions tell a different story.

“Instead, communities are being stripped of local banking services while the bank continues to report rising profits,” she said.

“Bank branches are not a luxury, they are essential infrastructure. Without government action, we will continue to see towns abandoned and workers paying the price.”

The branches to close are Coomera, Hervey Bay, Kawana Waters, Kippa-Ring, Macquarie Park, Millmerran, Oakey, Pittsworth, Runaway Bay, Toowoomba Range, Tweed Heads, Wilsonton, Blackwood, Millicent and Caroline Springs.

The Laidley, Goondiwindi and Maryborough agency outlets will also close.

The last day customers can visit these branches and agency outlets will be March 12.

Ms Angrisano says customers will now be required to drive up to 150km to reach their nearest People First Bank branch.

While in Queensland the towns of Oakey and Pittsworth will be left with no bank branches.

“This is not what banking for people looks like, for older customers, people with disabilities, and small businesses that rely on in-person banking, these closures are devastating,” she said.

People First Bank chief customer officer Maria-Ann Camilleri labelled the closures as a “difficult decision” but points out the way people use banking services has drastically changed.

“Less than 1 per cent of our transactions occur in branches and fewer than 0.7 per cent of our customers use a branch regularly,” she said.

“As a customer-owned bank, we must adapt to changing banking preferences by investing in the services our customers use most.

Ms Camilleri denied this was profit driven, as it pledged to do what it can to help customers through this period.

The Union claims profits for the bank were up 7 per cent increase in the last financial year, undermining claims that branch closures are a financial necessity.

People First Bank says all employees at the affected branches will be offered an alternative role with the bank.

In-person banking and cash access will remain available, with many affected branches near alternatives, including ATMs, eftpos, Australia Post banking services and other branches.

Online support through the app and internet banking will be available 24/7.

This includes dedicated support lines available now and for six weeks after the March 12 closure.