Number of bank branches grows for 11th straight year
The number of branches across Australia has increased for the 11th consecutive year, recently hitting 5,783 branches nationwide.
Despite the abundance of smartphone banking apps on offer and the ability to access online banking anytime, The Australian Prudential Regulation Authority (APRA) reported 212 more branches opened this year.
In the past eight years there has been a steady growth of bank branches, with 4,888 in 2004, compared with 5,783 in 2012.
This eight-year growth period is a stark contrast to the eight years prior to 2000, with the closure of 2,044 branches – 794 rural and regional branches and 1,250 metropolitan branches, according to Financial Sector Union data.
Source: Australian Bankers Association
The recent 1.2% growth in branches is the strongest growth in three years, according to APRA.
The financial institutions branch tally includes banks that were previously operating as credit unions and building societies.
The Defence Force Credit Union and Victoria Teachers Credit Union have been converted to separate banks, and Bendigo and Adelaide Bank Limited has acquired the Bank of Cyprus Australia.
The APRA reported Victoria as having the largest increase in new branches, followed by the Northern Territory, New South Wales, Tasmania and the Australia Capital Territory.
Australia Bankers Association chief executive Steven Münchenberg says banks have continued to open branches over the past five years, despite the global financial crisis.
“The trend in recent years has been to open bank branches in areas with growing populations and business activity.”
Westpac is currently the largest branch network in Australia with 1,270 outlets, since adding 13 more outlets to its name in the past year.
Commonwealth Bank comes in second with 1,168 outlets, after opening seven new branches past year.
ANZ has closed 16 branches in the past year.
“While the number of branches has decreased slightly, 75% of those that we’ve closed have merged with a branch within 10 kilometres or within the same suburb,” ANZ told Fairfax Media.
The increase in bank branches is just one of the many ways that banks are offering their products and services to customers.
Münchenberg notes the high use of ATMS, telephone, internet banking and mobile banking apps.
“Your ability to access and manage your personal finances makes banking one of the most convenient and accessible services provided in Australia.”