Why shutting down small town banks is robbing people of a fresh start
The closure of a rural bank was once seen as the beginning of the end for a small town but now it is more like stealing away a beginning for the town altogether.
With more people moving to regional Australia, bank closures are robbing some communities of a new start, the federal governmentās Regional Banking Taskforce has been told.
The taskforce was established in October to examine the impact of bank closures, after the number of branches in rural and remote areas fell from 2500 to 1900 in the four years to June 2021.
The taskforce has received more than 400 written submissions, completed public consultation, and visited regional towns in NSW and Victoria where banks have closed their doors.
After a meeting in Mildura on Wednesday, taskforce co-chair Senator Perin Davey said concerns had been raised about some towns being unable to attract new residents.
āWeāve seen through Covid a move back to the regions, which is exciting,ā Senator Davey told AAP.
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āBut when people are looking at towns they want to move to, they look at what services are in a town: is there a school, is there a medical centre, and is there a bank?
āIf the bank is not there, then they might look to the next town.
āSo rather than it being the beginning of the end (for country towns), weāre hearing that itās an impediment to the beginning.ā
The taskforce has also been told elderly and vulnerable people are worried about being forgotten as banks move their services online, she said.
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āA lovely older gentleman said, āIām only going to be around for another 10 to 15 years and then you can go for broke, but donāt leave me behind as youāre racing to the next era of technologyā.
āThat was a really important message. We canāt leave behind anyone, the older demographic, people who rely on disability services, or our Indigenous people in remote communities.ā
Small business owners have told the taskforce that if people travel to big regional centres for banking, they will spend money at their destination.
āWhile theyāre out of town doing their banking theyāre going to buy a coffee or do their groceries or go to the newsagent in that town, rather than their hometown,ā Senator Davey said.
āIt means small towns are losing that economic movement.ā
The taskforceās issues paper said it was particularly important to support regional Australia after rolling disasters ā from drought, to bushfires and the pandemic.
Senator Davey said the taskforce was hoping to complete its report and hand down recommendations next month.
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