Bankwest has announced it would close selected east coast branches, as it prioritises its investment in digital and broker/third-party offerings to meet changing customer needs.
There should be no surprise, as we foreshadowed the demise of the branch in our most recent edition of our report “The Quiet Revolution“. We said:
Our research shows that consumers have largely migrated into the digital world and have a strong expectation that existing banking services will be delivered via mobile devices and new enhanced services will be extended to them. Even “Digital Luddites”, the least willing to migrate are nevertheless finally moving into the digital domain. Now the gap between expectation and reality is larger than ever.
This is certainly not a cost reduction exercise, although the reduction in branch footprint, which we already see as 10% of outlets have closed in the past 2 years, does offer the opportunity to reduce the running costs of the physical infrastructure.
Bankwest said:
- 29 branches will close over a three-week period from 17 August, concentrating Bankwest’s east coast footprint into 14 key branches.
- Impacted customers are being informed of the closures and will receive guidance on alternative banking options available to them by email, letters and store signage.
- Closures will affect about 200 colleagues and Bankwest is placing a priority on supporting these people over the coming weeks.
- The move is the latest step in Bankwest’s strategic refocus (announced March 2017) on evolving and improving its offering to retail and small business customers nationwide.
Managing Director Rowan Munchenberg said rapid changes in the digital space required Bankwest to make important decisions on where to invest to deliver great value for customers and grow nationally.
“Many people still value face-to-face interactions, but customers increasingly expect seamless self-service options that allow them to do their banking when and where they choose,” he said.
“We’re seeing a consistent trend of customers choosing mobile banking over in-branch options for their transaction needs, with an 88 per cent rise in app logins over the past three years.
“So, we’re transforming our organisation to respond more rapidly to these changing customer needs by adopting new ways of working and embracing new technologies.
“But we know we can’t match the major banks’ nation-wide footprint and also deliver world class digital services, so we will prioritise digital channels and broker relationships.
“This change does not impact Western Australia, where our strong brand and established footprint enables us to maintain highly competitive branch and digital offerings.”
Mr Munchenberg said the change had been a difficult decision, given a significant number of east coast colleagues would be affected.
“We will work with and support impacted colleagues in the coming weeks, doing what we can to help them identify other opportunities, be they within or outside of the Group,” he said.
“We are writing to affected customers to outline options, such as using Australia Post’s Bank@Post services and, for business customers, taking advantage of CBA branches.
“Ultimately, this change means we can provide better services to more customers in the future.”
Expect more branch closures in the months ahead as the revolution continues….
