Mandate on regional bank branch numbers 'unwise', NAB's McEwan says
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More news: NAB chief executive Ross McEwan told the Senate inquiry into regional bank closure that it would be unwise for the government to recommend a mandated minimum number of regional branches.
What they said: "You need to consider what are you trying to enshrine into Australia because it sounds like you're enshrining a world that will never change, but it is changing dramatically," McEwan said.
Meanwhile, Westpac chief executive Peter King denied suggestions the bank was breaching its social licence by closing rural branches while it generates enormous profits.
CBA's Matt Comyn says spending $1b on branches is unsustainable
The news: Commonwealth Bank chief executive Matt Comyn says its branch network may become unsustainable as people move to digital services.
The numbers: The bank spends $1 billion per year to keep its branch network open, plus $400 million distributing cash its branches and millions of dollars supporting postal bank services, Comyn told a Senate inquiry. The company wants to have the highest market share of branches in country Australia, he added.
The inquiry, which is examining the effects of more than 600 bank branch closures since 2017, has heard from farmers, small businesses and councils who say face-to-face banking is an essential service in the regions. Five years ago, 43% of CBA's point-of-sale transactions were cash, compared to the current rate of 15%. Its customers transact $18 billion online every week, an increase of 64% over two years.
The context: Witnesses have told the inquiry that local bank managers are crucial for successful farming operations, while access to cash helps vulnerable populations and keeps community organisations afloat. While CBA was committed to continued cash transactions, the way customers used its services was changing rapidly, Comyn said. The inquiry will hear from the CEOs of the other three major banks throughout the day, along with union representatives.
What they said: "As time goes on, it becomes unsustainable to invest substantial resources keeping expensive services that fewer and fewer customers use," Comyn said.
The source: AAP
