The Finance Sector Union (FSU) has condemned People First Bank’s decision to close a further 15 branches across New South Wales, Queensland, Victoria and South Australia, warning the move will leave regional communities without access to face-to-face banking and place more than 70 jobs at risk.
The closures are due to come into effect in March, following the shutdown of 18 People First Bank branches in April last year, bringing the total number of closures to 36 in just two years.
The FSU says that since the merger of People’s Choice Credit Union and Heritage Bank in 2023, People First Bank’s branch network has been cut by a massive 40 per cent, despite assurances made to customers that the merger would deliver one of Australia’s largest member-owned branch networks.
People First Bank recorded a 7 per cent increase in profits in the last financial year, undermining claims that branch closures are necessary for financial sustainability.
The impact of the closures will be felt most acutely in regional and rural communities, with some towns left without any local bank at all.
In Queensland, the towns of Oakey and Pittsworth will be left with no bank branch, forcing residents to travel significant distances to access basic banking services.
The FSU says Queensland has been hit particularly hard, with almost half of the former Heritage Bank branch network set to close since the merger.
Customers in other regional centres will be required to travel up to 150 kilometres to reach their nearest People First Bank branch, including: Goondiwindi – 150km to Stanthorpe, Millmerran – 75km to Toowoomba, Maryborough – 75km to Gympie, Hervey Bank – 70km to Bundaberg, and Millicent – 45km to Mount Gambier.
The union says branch closures across the banking sectors will continue unless the Federal Government implements the recommendations of the banking report and intervenes to protect access to essential banking services, particularly in regional Australia.
Finance Sector Union National Secretary Julia Angrisano said:
“This is a bank that says it puts people first, yet it continues to abandon regional towns and local workers.
“When the merger was sold to customers, they were promised better access and more branches, not fewer.
“Instead, communities are being stripped of local banking services while the bank continues to report rising profits.
“This is not what banking for people looks like, for older customers, people with disabilities, and small businesses that rely on in-person banking, these closures are devastating.
“People First Bank says supporting customers and communities is at the heart of everything they do, but their actions tell a very different story.
“Bank branches are not a luxury, they are essential infrastructure. Without government action, we will continue to see towns abandoned and workers paying the price.”
Media contact: Kate Shuttleworth – 0447 418 726
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