Regional Banking Investment Alliance (RBIA), Media Release, 31 July 2025

A group of 25 regional banks and supporters have banded together to advocate to keep face-to-face branches open in regional towns. 

The organisations have formed the Regional Banking Investment Alliance (RBIA) and want essential bank branch services such as cash handling and fraud advice to be supported by a community service obligation (CSO) on the wider Australian banking sector to share the cost burden. 

Despite inquires and taskforces, big banks have closed more than 90 regional branches since February 2022, including more than a dozen this year, while RBIA members continue to open branches in towns like Wellington NSW and Capella Qld with no support. 

Alliance spokesperson and CEO of Queensland Country Bank, Aaron Newman said that regional bank branches often incur additional costs due to “pass through banking”, where customers use regional bank branches for costly services like cash handling and then transfer their funds to big banks who enjoy the profits. 

“We help these communities with fraud and scam advice, cash withdrawals and deposits, cash floats, and provide local jobs,” Mr Newman said. “We are passionate about servicing our local communities and keeping the profits local, but it’s really tough when we are competing against giants, who are not doing the same. 

“Around 30 per cent of transactions in our banks lead to pass through banking, seriously disadvantaging our ability to compete and expand. We just want the banks who are neglecting the regions to pay their fair share in keeping face-to-face services alive.” 

A delegation of Alliance members recently travelled to Canberra to discuss a cost-sharing model where big banks whose regional branch investment falls short, continue to support regional communities. 

CEO of Traditional Credit Union (TCU), Simon Lyons said, “This is a David vs Goliath battle. The big four alone made more than $31 billion in profit last year, yet they’re walking away from the communities that actually helped to build their success. 

“TCU and our RBIA partners turn up every day in places where banking is hard and costly, not because of profit, but because these communities matter, these communities need us. A fair levy on banks that close branches or don’t have any branches would allow us to keep cash flowing, create real jobs, and expand services to towns that the majors have abandoned. 

“It’s time to support the banks that stay, not just allow those that leave to reward their shareholders at the expense of regional and remote Australia.” 

This year there have been more announcements that bigger banks are closing regional branches.

Meanwhile, banks like Regional Australia Bank are optimistic about face-to-face services. 

Regional Australia Bank opened a new branch in May, with CEO, David Heine saying, “We are thrilled to announce the opening of our new Wellington branch and are excited to expand our presence in the region. This new location represents our ongoing commitment to providing accessible and reliable banking services to the communities we serve in regional New South Wales.” 

The Alliance has garnered support from community groups, with the Country Women’s Association (CWA) NSW, Regional HQ, Combined Pensioners and Superannuants Association (CPSA) and National Seniors signing on as supporters. 

CEO of CWA NSW, Danica Leys said, “Regional and rural Australia is the lifeblood of Australia. Many families in the regions rely on their local branch for not just face-to-face banking services, but for employment and sponsorships. Regional banks keep their profits local and are part of helping our country towns thrive. 

“People in rural Australia should not miss out on essential services, and face-to-face banking, access to cash, and scams advice are essential for all Australians.” 

With the finalisation of a cash mandate on the government’s agenda, a new consultation on cash distribution, and continuation of branch closures from larger banks, the Alliance hopes to continue work with the government on creating an environment where face-to-face branch services and fair cash distribution is available, no matter where you live in Australia.

See: Regional bank closures