Just 84 bank branches left in Tasmania as digital banking dominates

There’s now fewer physical banks and ATMs in Tasmania than there was five years ago, according to new data.

The Australian Prudential Regulation Authority say the state has lost 174 ATMs and 46 bank branches since June 2018 due to more people using electronic banking and having a lower reliance on cash.

In the measured period to June 2023, a total of 84 bank branches remained open in Tasmania, alongside 109 bank ATMs.

Among the banks, Commonwealth Bank closed the most Tasmanian branches, going from 37 to 25, followed by ANZ, which shut 9 branches.

Experts say while it is important to retain physical banking locations, the changes reflect a shift in how people have become more reliant on digital options.

The figures come as a Senate inquiry, which is due to release its final report in May next year, examines bank closures across regional Australia.

Bosses from the big four banks fronted the inquiry last month, with the top executives all pointing to cost pressures and changing customer demands as major reasons for branch closures.

Commonwealth Bank CEO Matt Comyn said the bank had reduced its branch footprint over time as “the way customers engage with banks continues to change”.

Westpac CEO Peter King said it was using technology to connect the group’s brands to regional customers.

ANZ CEO Shayne Elliott said the reality was customers were “rapidly moving towards digital channels”.

The Commonwealth Bank and Westpac have committed to keeping all regional bank branches open while the inquiry is undertaken.

APRA define branches as “face-to-face points of presence” that accept cash, deposits and provide change, have the ability to open and close accounts, can provide customer access to accounts, work to assess credit risk and offer additional financial services, business banking and specialist lending.