Fears for senior Australians as banks move away from face-to-face service

Westpac confirmed on September 24 that 200 face-to-face jobs would be axed as part of a new vision for concierge-operated branches.

Concierges will be able to help customers by pointing them towards the nearest ATM or by helping them navigate through the bank's app or website.

But National Seniors Australia CEO Chris Grice said Australians who do not use smartphones, or people with vision impairment, will have limited options for banking in the new model.

He questioned whether the move was a "workaround" of the moratorium on bank branch closures outside metropolitan areas until mid-2027.

"At least, with the moratorium on bank branch closures in regional and rural communities, there's a hard date on that," he said.

"But in the meantime, they can still make things very challenging for their customers if they don't have tellers in place in these branches."

Westpac, which employs over 30,000 people, said its workforce was adjusted based on investment priorities.

"While we continue to invest in extra bankers, other areas may need fewer resources," a Westpac spokesperson said.

"This means from time to time we make changes that may impact some roles and responsibilities as we actively manage costs and investment.

"As the skills and capabilities required in banking continue to evolve, so will our workforce."

It's not just simple banking services that branches offer to vulnerable Australians; there's also safety in having a human handling transactions.

"Financial elder abuse cannot be identified online like it can be in face-to-face situations. There are some circumstances when there really is no substitute for face-to-face customer service and support," Mr Grice said.

"If there's an unusual withdrawal or transfer, the teller is the first line of defence. They have relationships built up with these people who come in to do their banking," he said.

Tellers also protect customers against devious financial scams, being a trusted point of contact for people who are suspicious that they have been conned.

Australians aged 65 and over lost almost $100 million to scammers in 2024, Scamwatch found.

An alliance of small regional banks has formed, attempting to push the big four to share the cost of maintaining essential services such as cash handling and fraud advice in country communities.

The Regional Banking Investment Alliance (RBIA) includes Regional Australia Bank, Summerland Bank, Broken Hill Bank and 22 others.

"We help these communities with fraud and scam advice, cash withdrawals and deposits, cash floats, and provide local jobs," Queensland Country Bank CEO Aaron Newman said.

"We are passionate about servicing our local communities and keeping the profits local, but it's really tough when we are competing against giants, who are not doing the same," he said.

"We just want the banks that are neglecting the regions to pay their fair share in keeping face-to-face services alive."