The Strathpine branch is one of 18 People First Bank branches across Australia slated for closure, a move that will result in nearly 100 job losses.
The bank, formed from the merger of Heritage Bank and People’s Choice Credit Union, announced the closures, citing a dramatic shift towards digital banking and away from in-person branch transactions. The closures are scheduled to take effect from 4 April.
Community Impact
The Finance Sector Union (FSU) has strongly criticised the decision, arguing that it will disproportionately impact regional communities. They described the closures as a “devastating abandonment” of customers and an “attack” on these areas, particularly highlighting the five affected regional branches.
The FSU also expressed concern about the staff losing their jobs. While People First Bank has stated they will attempt to find alternative roles for affected employees, the FSU reports that staff members have expressed anxiety about their future.
Bank’s Rationale
People First Bank’s Chief Customer Officer, Maria-Ann Camilleri, stated that the decision was driven by changing customer behaviour. She explained that branch transactions now represent less than 1% of all customer interactions, with less than 0.7% of customers associated with the affected branches having visited a branch monthly in the past year.
She added that most customers now prefer digital banking channels like the bank’s app and internet banking. Camilleri acknowledged the role branches play in local communities but emphasised the need to focus on services that customers are actively using. She said the bank will invest in their 24/7 contact centre and technology to enhance digital banking services.
National Trend
These closures are part of a wider trend in the Australian banking sector. Bank of Queensland (BOQ) recently announced the closure of 14 branches, citing the rise of digital banking. Data from the Australian Banking Association supports this trend, showing a 47% drop in face-to-face branch interactions and a 26% decrease in phone calls between 2019 and 2023. The association reports that 99.1% of banking interactions are now conducted online or through apps.
People First Bank assures customers that alternative banking options, such as nearby branches, ATMs, and Australia Post banking services, are available. They believe that the closures will have minimal impact on the vast majority of their customer base who already bank digitally.
Published Date 05-Feb-2025