General News
30 March, 2023
Bendigo bank to close Warrack’ agency...The supposed ‘community bank’ appears not so community focused
As banks Australia and worldwide come under the magnifying glass and pressure, with a range of issues and some overseas apparently under financial stress due to rising interest rates and capital adequacy, there’s been a bank that has always...
As banks Australia and worldwide come under the magnifying glass and pressure, with a range of issues and some overseas apparently under financial stress due to rising interest rates and capital adequacy, there’s been a bank that has always portrayed itself as a bank for the community, the Bendigo Bank.
In fact the community bank model grew out of this region with the first Bendigo Community Bank being formed in Minyip and Rupanyup about 25 years ago.
The Bendigo Bank has always marketed itself as being a community friendly bank serving the community, with the first highly successful Bendigo Bank's ‘Community Bank’ program beginning in those towns in 1998.
So when the demise of the banks in the area started with the conversion of Warracknabeal Westpac to an agency in the Tristar business, which then also closed and then the ANZ closing in October 2018, Bendigo Bank stepped in to promote itself as the bank here to serve the community. Big bank clients jumped ship and flocked to the Bendigo Bank, Warracknabeal agency to support the bank that presented itself as working in the interests of the local community.
Stunned
However the Warracknabeal community has been stunned by the sudden notice, without warning that Bendigo Bank has now announced the closure of its banking corporate agencies.
This will apparently directly affect all Bendigo Bank ‘corporate agencies’ that are not community or Bendigo Bank branches around the state, with the closure of Warracknabeal penned to happen at the end of June. Possibly around June 20.
Some years ago the Bendigo Bank actively encouraged clients who were left in the lurch with the ANZ bank closing its Warracknabeal branch to join.
Most community members considered that Bendigo bank was community focused and hence transferred their banking to Bendigo bank, but now the bank has done a backflip and will leave many communities without this service.
The Bendigo Bank first commenced in Warracknabeal at North West Travel and then transferred to Dianne Marchment and Associates as an agency, in September 2006.
In this arrangement, it started with a community focus, contributing to a profit sharing arrangement, making a contribution back into the community through a ‘community chest program, with funding going to a wide range of community projects including funding for the Anzac Park oval lighting, which ended some time ago.
Despite the banks apparent commitment to supporting small communities with banking services since the start of the community banking concept with the first ‘Community’ bank starting in Minyip and Rupanyup, this appears to be a total turnaround from its fundamental concept, with the closure of such corporate agencies.
Full service branch
When the ANZ closed its doors in Warracknabeal in October 2018, it was common knowledge that the Bendigo Bank was looking to start a full service branch in Warracknabeal.
The plan at the time was to convert from being an agency, but this never eventuated...and to add insult to injury the banking group has now done another backflip, with the decision to close their corporate agencies around the state, including a Geelong agency in December and Omeo prior to that. It is understood that many other corporate agencies are also to be closed around the state.
The Herald understands that numerous other corporate agencies have also closed by their own choice as it ‘just became ‘to hard’.
DMA proprietor and Warrack Action Group chair, Dianne Marchment said yesterday, “we’re totally stunned by this decision, our team have worked so hard to make this ‘bragency’ successful. We have so many loyal customers who made the decision to support the Bendigo Bank model here in town and it’s a real slap in the face for both us and our clients to be treated this way.”
Bendigo Bank sent out letters late last week advising the announcement, which also contained some confusing information about accessing branches in other towns such as referring to the Minyip branch operating hours at Dimboola.
Slap in the face
“It’s real slap in the face for us, the district and our clients,” John Hadley, proprietor of North West Realestate said yesterday.
“So many businesses and people jumped on board to support Bendigo Bank at the DMA agency. We figured Bendigo Bank was making a commitment to rural communities,”
“We all expected them to be there for us and provide our banking services, when the big four banks seemed ‘hellbent’ on withdrawing services in rural Australia.”
“Warracknabeal is currently still serviced by the National (NAB) and Commonwealth bank branches, but now on significantly reduces hours. Maybe it’s time to revisit the full Bendigo Community Bank model again, seeing the original idea some time ago didn’t gain any traction. I have little doubt that the seeding funds are available in the area, if there is sufficient interest to make it work in the area,” Mr Hadley said.
“The big banks just don’t care, we’re only numbers and profit on a balance sheet, of which they’re all making substantial profits, they’re only out to please the shareholders by the looks of it to most of us, the only practical option to my line of thinking is to start our own ‘community bank!” Mr Hadley said.
Response
Bendigo Bank, Public Relations Assistant Manager, Rosie Hartney advised the Herald late yesterday, that following a detailed review of transaction activity, evolving customer banking habits and the declining numbers of people using cash.
“We regret to advise that the Bendigo Bank Agency located at DMA Tax Pty Ltd, 36 Scott St, Warracknabeal, will be closing on Wednesday 20 June 2023 at 2:00pm”.
She said, “closing an agency is never a decision we make lightly, however, as more and more customers choose to do their banking online or over the phone, our bank must respond and invest to support evolving customer expectations and changes in customer behaviour.
“For lending and other enquiries, Bendigo Bank Horsham is open Monday-Friday with an ATM, and customers can also conduct over the counter banking at any of the more than 3,500 Australia Post outlets. Warracknabeal LPO open an additional five hours per week. The bank has reached an agreement with Australia Post to support concession account holders by waiving the fee to use this service,” she said.