People First Bank has announced the permanent closure of 18 branches across Australia, sparking outrage and concern among customers and community leaders. The decision, which will result in nearly 100 job losses, is seen as part of the broader trend toward digital banking, replacing traditional face-to-face interactions with online transactions.
Effective from April 4, 2025, these closures will impact 11 Heritage Bank branches located predominantly in Queensland and seven People’s Choice Credit Union branches situated across South Australia, Northern Territory, and Victoria. Chief Customer Officer Maria-Ann Camilleri stated the decision was driven by changing customer preferences, as branch visits now account for less than 1% of total banking transactions.
According to Camilleri, "Increasingly, our customers are choosing ATMs, Internet Banking and our App for their day-to-day banking, with branch use now accounting for less than 1% of all transactions." Informing customers of the changes, she added, "For the small number of customers who use the affected branches, we have a range of options available so they can continue to bank with us."
Among the specific Heritage Bank branches affected are Beenleigh, Brookside, Capalaba, Indooroopilly, Noosa Civic, Nambour, Mermaid Waters, Nerang, Strathpine, The Pines Elanora, and Victoria Point. People’s Choice Credit Union will close locations including those in Darwin, Maryvale, Warrnambool, Gawler, Victor Harbor, Seaford, and Northpark.
The Finance Sector Union (FSU) has sharply criticized the closures. Jason Hall, the FIU’s national assistant secretary, labeled the move “an attack on regional communities,” particularly as five of the affected branches are located outside major urban areas. Hall noted, "These aren’t the first branch cuts of 2025, but they are the largest." He also highlighted the irony of the new bank brand calling itself People First, by prioritizing cost-cutting over community engagement, remarking, "It also really plumbs the depths of irony for a bank calling itself People First to start their new brand by slashing branches and staff, putting last the people they claim to put first."
While the closures will inevitably impact local access to banking services, People First Bank maintains the growing trend toward digital banking is not going to reverse. A report from the Australian Banking Association has indicated substantial declines in face-to-face interactions, with estimates showing such transactions have dropped by 47% from 2019 to 2023. Interestingly, Camilleri asserted, "For the overwhelming majority who bank digitally, this change will have little to no impact."
This move aligns with the wider trend across the banking sector, as other financial institutions also reduce their physical presence. The Bank of Queensland, for example, announced it would close 14 branches across various states earlier this year.
Despite the backlash from community groups and the union, People First Bank committed to transitioning employees affected by the closures to alternate roles within the organization, reflecting their attempt to provide some level of job security amid operational cutbacks. Camilleri reassured, "We will support everyone affected with care and underastanding."
This situation highlights the delicate balance facing banks between adapting to customer preferences and maintaining accessible service for all members of the community. Digital banking continues to reshape the financial industry, and as institutions drive for efficiency, the question remains: how do we safeguard access for those for whom traditional banking is not just convenient, but necessary? The latest closures, alongside those from other banks, may serve as wake-up calls for regulators and industry leaders to rethink how digital transformation impacts everyday banking services.