Bank admits it could have done more to fully support its customers
The Banking Code Compliance Committee (BCCC) has sanctioned Westpac for serious and systemic breaches of the Banking Code of Practice after the bank failed to provide adequate support to customers following the closure of its branch in Tennant Creek, Northern Territory.
The BCCC’s investigation found that Westpac did not comply with its obligations under the Banking Code and the Australian Banking Association’s Branch Closure Protocol when it closed its Tennant Creek branch in September 2022.
The committee’s findings show that Westpac failed to support customers in transitioning to other banking methods, engage with the community to address concerns, and provide adequate assistance to customers in remote areas to ensure access to essential banking services.
“The obligations set out in the code are crucial for protecting customers when a bank branch closes,” said BCCC chair Ian Govey (pictured above). “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.”
In response, a Westpac spokesman stated that the ongoing safety and security threats in Tennant Creek meant the bank needed to close its branch outside the standard process to protect its employees.
“These circumstances were specific to the Tennant Creek branch and included damage to our branch and ATM,” the spokesman said. “Customers were notified of the closure and alternative banking options via SMS ahead of closure, as well as posters in the branch.”
BCCC, however, maintained that many customers struggled to adapt to the closure, leading to an influx of requests for help to local community groups. Westpac’s response to concerns raised by community groups was deemed insufficient, creating further challenges, particularly for vulnerable customers, such as the elderly or those for whom English is not a first language.
“Westpac’s failure to respond promptly to community concerns and provide adequate support was troubling and appears to have disproportionately impacted on vulnerable customers,” Govey said.
“This decision sends a clear message to the banking industry that non-compliance with the code’s standards will not be tolerated. Banks must carefully consider the needs of their customers and provide the right support to adapt to new ways of banking.”
The BCCC said its decision to name Westpac is the most severe action it can take in response to serious and systemic breaches of the code. It reiterated the need for banks to comply with the code’s requirements when closing branches, particularly in remote areas.
Westpac, meanwhile, acknowledged that it could have done more to fully support its customers during the branch closure.
“As a result, we have reviewed and strengthened our branch closure protocols,” the bank said, adding that it continues to provide banking services to the Tennant Creek community.
“We have relocated and maintained an ATM in Tennant Creek, coordinated visits from our remote banking team, and supported customers through our Indigenous Contact Centre,” it stated. “We’re committed to providing our customers and communities in regional Australia with access to banking services.”
Earlier this year, Westpac announced it would make no further branch closures in regional areas until at least 2027 – extending its existing moratorium to four years. The bank said it has also focused on co-locating branches in areas where it has two brands which can be brought together into one branch.
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