Read More
A trio of major lenders including HSBC (0005) may join a banking service run by Australia’s post offices as part of a government push to mitigate branch closures across the country.
ADVERTISEMENT
SCROLL TO CONTINUE WITH CONTENT
ANZ agreed to participate in Australia Post’s Bank@Post venture, while Macquarie and HSBC will begin negotiations to follow suit, Australia’s government and the nation’s banking lobby said Tuesday. They didn’t disclose how much funding the program would net from participants.
The deal deepens what has become a backstop for banking and teller services in many parts of rural Australia that piggybacks on the country’s mostly franchisee-owned post offices. The Labor government’s agreement lifts funding for the postal network to boost some bank-like services ahead of a federal election.
“Banks have a responsibility to regional communities and we’re holding them to it. We are making sure bank branches stay open in the bush,” Treasurer Jim Chalmer’s office said in a statement, adding that 36 percent of bank branches in regional Australia have closed since 2017.
The rise of digital banking is making it increasingly uneconomical to keep branches open, even as a meaningful portion of customers continue to demand them. It’s also threatened the flow of cash across the gigantic continent.
Australia Post has one of the largest retail networks nationally and runs more than 4,000 post offices. At least 3,300 of those provide Bank@Post services, according to the organization.
The Bank@Post initiative already includes a coalition of other big banks including Commonwealth Bank of Australia, Westpac Banking and National Australia Bank. All three reached new in-principle agreements with the program, the government said.
BLOOMBERG
