Westpac found to have breached banking code with branch closure
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The news: Banking major Westpac has been named and shamed by the Banking Code Compliance Committee for breaching industry standards when it closed its Tennant Creek, Northern Territory branch in September 2022.
The committee said Westpac failed to comply with the Australian Banking Association branch closure protocol to provide customers with information over access to services when closing the branch, which should have included outlining alternative services for consumers to access. Westpac also failed to provide adequate support for affected customers once the branch had closed, it added.
The context: The committee began an investigation into Westpac's compliance with branch closure measures in May 2023, following concerns that the bank had failed to provide adequate support to customers.
There are no penalties stemming from the findings.
What they said: In a media release on Tuesday, BCCC chair, Ian Govey said Westpac's actions had disproportionately affected vulnerable customers.
"The obligations set out in the Code are crucial for protecting customers when a bank branch closes. In this case, Westpac has fallen short of their promise to customers. Their actions have had a significant and detrimental impact on many people within the Tennant Creek community", Govey said.
The source: Banking Code Compliance Committee
