How is it that commercial interests can gain control of an important Government inquiry? This is the excellent question posed by Dale Webster at The Regional. The Regional Banking Taskforce was, she says, stacked by bankers, and its outcomes were pretty much biased from day one.
The current Government are also culpable.
We need a proper inquiry in Regional Banking services, as Dale and I highlighted in our recent joint letter to the Senate. Please get behind it!
Our submission is available to view here and download : https://digitalfinanceanalytics.com/blog/loss-of-in-person-banking-letter-to-rarat-committee/
And a list of Senators by state is available here: https://citizensparty.org.au/aus-senate
If you care about the economic future of our regional towns and suburbs, then please contact your local Senators and tell them that they should support the initiative, ideally over the next few days, so as to create maximum impact in the final sitting week of the year.
The Regional: https://www.theregional.com.au/
Go to the Walk The World Universe at https://walktheworld.com.au/
Westpac is planning to remove the final branch from Opal Regional Centre Coober Pedy. The next branch is 440 kms away.
Senator Rennick made a statement on this in the Senate yesterday. And after a town meeting on Monday, it was clear this decision would adversely hit the town commercially, socially and from a mental health perspective.
The Advertiser ran an article on the closure, which may not yet be a done deal.
So, if you care about this issue, I suggest contacting the SA Premier Peter Malinauskas premier@sa.gov.au https://www.dpc.sa.gov.au/the-premier and Westpac CEO Peter King https://www.westpac.com.au/about-westpac/westpac-group/executive-team/ and John McFarlane Chairman and Independent Non-executive Director https://www.westpac.com.au/about-westpac/westpac-group/board-of-directors/ https://banking.westpac.com.au/olfmu/eforms/ConsumerFeedback/#/welcome
Go to the Walk The World Universe at https://walktheworld.com.au/
We (Dale Webster and I) have written to the Senate Standing Committee on Regional and Rural Affairs and Transport about the economic fallout from the removal of in person banking services across Australia. Today I discuss this with Robbie Barwick from The Australian Citizens Party and the need to lobby Senate members on this important issue.
If you care about the economic future of our regional towns and suburbs, then please contact your local Senators and tell them that they should support the initiative, ideally over the next few days, so as to create maximum impact in the final sitting weeks of the year.
Go to the Walk The World Universe at https://walktheworld.com.au/
And we discuss an alternative to the Major Banks who are closing outlets to secure profits for shareholders – the Customer Owned Banks. There are nearly 60 across the country focused on their members (customers) offering lower risk, more competitive banking services, including local branches.
You can find a list of local members here: https://www.customerownedbanking.asn.au/about-coba/list-of-our-members
So, I recommend switching to these community banks, away from the Majors. Funnily enough often the COBA banks offer better rates, and service than the others, and have the highest customer satisfaction!
Finally, digital is fine until the power goes out, and cash is still needed to maintain viable and dynamic local communities!
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Go to the Walk The World Universe at https://walktheworld.com.au/
AUSTRALIA’S banking regulator APRA is picking and choosing which banks it is allowing to get away with breaking the law by misreporting whether their sites offer cash service provided by a teller according to an important article in The Regional. Kudos once again to Dale Webster for highlighting this important issue.
Errors in hundreds of minor and foreign bank sites included in the Australian Prudential Regulation Authority’s points of presence data for years, even decades, have been corrected over the past 17 months after being exposed by The Regional in May 2021.
In today’s show we look at the latest inquiry into Banking, which is looking at how regional areas in Australia are and should be supported. Whilst the short-hand answer might appear to be go on-line, the truth is connectivity in many areas is still shaky, some services still need face to face interaction, yet banks are shutting branches and removing ATMs, in an attempt to drive down costs. There has been a 24 per cent fall in regional bank branches over the last four years, and this does not count the increasing number only open for a few hours a week.
You can make a submission for the next month or so. https://treasury.gov.au/consultation/c2021-222961
I discuss with Robbie Barwick from The Citizens Party.
I discuss the latest developments on the Senate Inquiry into Australia Post with Robbie Barwick from the Citizens Party. Time to make a submission and show how important the future of the network is for Australia. This is way more than an issue of watches…
Nonbank online lenders are becoming more mainstream alternative providers of financing to small businesses. In 2018, nearly one-third of small business owners seeking credit reported having applied at a nonbank online lender. The industry’s growing reach has the potential to expand access to credit for small firms, but also raises concerns about how product costs and features are disclosed. The report’s analysis of a sampling of online content finds significant variation in the amount of upfront information provided, especially on costs. On some sites, descriptions feature little or no information about the actual products or about rates, fees, and repayment terms. Lenders that offer term loans are likely to show costs as an annual rate, while others convey costs using terminology that may be unfamiliar to prospective borrowers. Details on interest rates, if shown, are most often found in footnotes, fine print, or frequently asked questions.
The report’s findings build on prior work,
including two rounds of focus groups with small business owners who
reported challenges with the lack of standardization in product
descriptions and with understanding product terms and costs.
In addition, the report finds that a number of websites require prospective borrowers to furnish information about themselves and their businesses in order to obtain details about product costs and terms. Lenders’ policies permit any data provided by the small business owner to be used by the lender and other third parties to contact business owners, often leading to bothersome sales calls. Moreover, online lenders make frequent use of trackers to monitor visitors on their websites. Even when visitors do not share identifying information with the lender, embedded trackers may collect data on how they navigate the website as well as other sites visited.
Bank of Ireland has caved in to public pressure following a public outcry over its plans to heavily restrict cash transactions in its branches, via Irish Independent.
The bank came in for sustained criticism
after the Irish Independent revealed yesterday that it plans to restrict
over-the-counter cash withdrawals to a minimum of €700 and cash
lodgements to a minimum of €3,000 in an effort to push customers towards
using ATMs and self-service machines.
However, after criticism from Finance
Minister Michael Noonan, as well as groups representing consumers,
farmers, older people, rural dwellers and bank workers, the bank
conceded that what it called “vulnerable” customers could continue to
get cash and make withdrawals of smaller amounts of money at branch
counters.
The changes prompted fears of a renewed
bout of bank branch closures and staff lay-offs in the wake of the
bank’s move to severely restrict counter-based cash transactions.
Mr Noonan described the changes as
“surprising and unnecessary”, adding that he expects the bank to “fully
honour” its commitment to “vulnerable customers”.
Bank of Ireland said it would continue to
allow older customers and those unfamiliar with technology to make cash
transactions over the counter.
“Bank of Ireland would like to confirm
that vulnerable customers, together with those elderly customers who are
not comfortable using self-service channels or other technology
solutions, will be assisted by branch staff to use the available
in-branch services.”
However, other banks are now expected to
follow the lead of Bank of Ireland by moving to set strict limits on
over-the-counter cash handling.
It comes after around 200 bank branches
were closed, mainly in rural areas, during the financial collapse, with
at least 10,000 retail bank staff laid-off.
Banks including Bank of Scotland, Danske, ACC and Irish Nationwide have already closed, limiting banking options for customers.
Now there are concerns that the move by
Bank of Ireland to effectively become a cashless bank will prompt more
branch shut-downs and redundancies.
Deputy chairman of the Consumers
Association Michael Kilcoyne said other banks were set to mirror Bank of
Ireland and discourage customers from withdrawing and lodging cash over
the counter.
This would make branches in rural areas less viable, he warned.
“The implications of the Bank of Ireland
move are very severe. If it gets away with this it will get rid of more
staff and close branches.
“This will be a further blow for rural Ireland,” he said.
Mr Kilcoyne predicted that AIB, Ulster Bank and Permanent TSB would make similar moves to curtail cash handling.
And banking union IBOA said it is seeking a
meeting with Bank of Ireland boss Richie Boucher over concerns the
changes would mean more job losses.
The Irish Farmers’ Association said the
changes would cause great difficulty for some farmers who are not
familiar with the bank’s online system.
Age Action accused the bank of ignoring the needs of older people by setting high limits on over-the-counter transactions.
