Commonwealth Bank of Australia (CBA) has consigned the more than century-old Bankwest branch network to history, with the Group’s Western Australia subsidiary announcing it will transition to a fully digital outfit within eight months and close or covert around 60 branches across the state.
Announcing the move this week, CBA Group said its decision to turn its WA subsidiary fully digital was “influenced by rapidly changing customer preferences”, noting that “97 per cent of all Bankwest transactions are now completed digitally, [with] fewer than two per cent of customers visiting a branch regularly”.
On average, around 30 over-the-counter transactions are made per day in Bankwest branches, with just 15 made in regional WA, the bank noted as part of its justification for the closure.
While not delineating a clear transition timeline, CBA chief executive Matt Comyn late last year did flag the Group’s intention to transform its WA subsidiary into an entirely digital operation.
At the time he said the Bankwest brand had “decided that a much larger [regional] footprint” would not be commercially prudent.
The just-announced transition will, by October this year, see the closure of 45 Bankwest branches, with another 15 regional Bankwest locations to be converted into CBA branches by the end of 2024.
While CBA is under a self-declared moratorium on regional bank branch closures until 2026. However, this does not include branches tied directly to the Bankwest brand.
CBA Group claims that, despite the Bankwest branch closures, it will still operate “the largest bank branch footprint in WA with the extension of its support for personal and business customers in regional WA”.
It added that 500 CBA Group roles in technology, operations, and customer service will be redirected to WA to support Bankwest’s digital transition, “offering new career pathways for Western Australians in next generation banking jobs”.
Moreover, CBA said new “reskilling opportunities” – including in digital or online service support roles – have been promised to each branch member affected by the change.
The Finance Sector Union, which represents Australian financial sector employees, claims that 22 positions within Bankwest’s retail lending operations, consumer finance, everyday banking and home buying operations are set to be made redundant.
CBA argues the closure of Bankwest’s physical branch network would enable it “to accelerate investment in delivering simple and easy digital banking and broker services to meet the needs of more homeowners across Australia”.
Bankwest executive general manager Jason Chan, defending the branch closures, acknowledged that the move would prove “difficult” for some customers, adding that the bank will introduce “a range of support measures to help our customers who are regular branch users carefully through this transition”.
Among CBA’s promised support measures include the deployment of dedicated teams offering “non-cash face-to-face service” in regions facing branch closures, a 24/7 call centre team for WA-based customers, and a “dedicated program” to transition around 2,000 branch-only Bankwest customers to CBA everyday banking accounts.
CBA said it will also maintain its Bank@Post service across the state.
“Bankwest is here to stay,” Chan declared. “[Our] transition to a digital bank is unlocking significant investment from the CBA Group to create a world-class Bankwest offering and support our growth nationwide, powered by WA colleagues passionate about our customers.”
“Bankwest is now 129 years old and we’ll continue to evolve in the years to come to ensure we remain a sustainable, growing, and successful WA-based business, and a major WA employer, in a highly competitive national banking sector.
