Australia’s banking landscape is changing fast. Digital platforms and mobile apps have redefined how we manage money, but despite the headlines, bank branches haven’t vanished overnight. In 2025, branch banking is evolving—finding new relevance and redefining its role for Australians who still crave a human touch, complex services, or simply a sense of trust. Let’s dive into what’s happening with branch banking, why it still matters, and what the future holds.
The State of Branch Banking in 2025
For decades, the local bank branch was at the heart of Australian communities—from bustling city centres to remote country towns. But over the past five years, the sector has seen significant consolidation. According to the Australian Prudential Regulation Authority (APRA), the number of physical branches dropped by nearly 30% from 2020 to 2025, with closures most pronounced in regional and rural areas. Major banks including CBA, Westpac, NAB, and ANZ have continued to streamline their networks, citing the surge in online transactions and mobile banking.
- Urban vs. Regional Impact: Capital cities retain more branches per capita than regional towns, where closures have prompted community backlash and even Senate inquiries.
- Hybrid Models: Banks are piloting ‘banking hubs’—shared spaces offering basic services for multiple banks—especially in regional areas. Australia Post’s Bank@Post service has also expanded, providing access points for everyday banking where branches have vanished.
- Specialised Branches: The remaining branches are increasingly focused on complex services: mortgage applications, business banking, financial advice, and handling sensitive issues like fraud or bereavement.
Policy Shifts and Community Responses
Branch closures have triggered fierce debate in parliament and among consumer advocacy groups. In late 2024, the Federal Government launched a review into the impact of closures on regional Australia. The review’s interim findings, released in March 2025, recommend:
- Increased obligations for banks to consult with affected communities before closing branches.
- Enhanced support for digital inclusion—such as funding digital literacy programs and improving rural internet connectivity.
- Exploring further partnerships with Australia Post and local councils to maintain access to cash and banking advice.
Some banks, responding to reputational risk, have announced moratoriums on further closures in areas with limited alternatives. Others have invested in mobile banking vans and pop-up branches to maintain a physical presence in remote communities.
Why Branches Still Matter: The Human Factor
Despite predictions of a ‘branchless’ future, many Australians continue to value face-to-face service. According to a 2025 survey by the Australian Banking Association, 38% of respondents had visited a branch in the past six months—often for reasons like:
- Applying for a home or business loan
- Managing estate matters or large transactions
- Getting assistance with financial hardship or complex enquiries
For older Australians and those in regional areas, branches remain a lifeline. Local staff provide personalised service, local knowledge, and a sense of security that digital-only platforms can’t fully replicate.
That said, branches themselves are changing. Expect to see more ‘smart branches’ with digital self-service kiosks, video conferencing for specialist advice, and flexible opening hours to suit local demand. Banks are investing in training staff to handle complex customer needs rather than routine transactions, which are increasingly handled online.
The Road Ahead: Balancing Digital and Physical Banking
As 2025 unfolds, the challenge for Australian banks is clear: find the right balance between digital convenience and human connection. Branches are becoming fewer but smarter—serving as hubs for advice, trust, and community engagement. Policy makers, banks, and consumers will continue to debate the best way forward, but one thing is certain: the humble bank branch, while transformed, is far from obsolete.
