High Street Banks in Australia 2025: Still Relevant?

Walk down any major Australian city’s main strip and the familiar signage of high street banks—think Commonwealth Bank, Westpac, NAB, and ANZ—still anchors the landscape. Yet, in 2025, the banking scene is shifting. With digital disruptors, evolving customer expectations, and fresh regulatory winds blowing, are these traditional giants still the best place for your money?

What Makes a High Street Bank?

In the Australian context, a ‘high street bank’ refers to the large, established retail banks that offer everyday financial services: savings and transaction accounts, home and personal loans, credit cards, and in-person advice. Their physical branches dot main shopping precincts, providing a tangible sense of security and service.

• Branch network: Hundreds of locations across Australia, especially in metro areas.

• Comprehensive services: Mortgages, business banking, insurance, superannuation, and more.

• Brand legacy: Often more than a century old, with deep ties to the Australian economy.

Yet, this legacy is being challenged by digital-first banks (neobanks), fintechs, and changing customer behaviour.

The 2025 High Street Bank: Evolving or Endangered?

While the Big Four still hold the lion’s share of deposits and loans, 2025 is a year of reckoning:

• Branch Closures: According to the Australian Prudential Regulation Authority (APRA), over 300 bank branches closed in the past two years, with regional and rural areas hardest hit. In-person banking is increasingly rare for many Aussies.

• Digital Transformation: High street banks have invested billions in upgrading mobile apps, online lending, and AI-driven customer support. NAB’s 2025 quarterly report highlights a 25% year-on-year increase in app logins versus a double-digit drop in branch visits.

• Policy and Regulation: New rules around open banking, data sharing, and consumer protections have forced banks to adapt. The Consumer Data Right (CDR) now allows customers to easily switch banks and take their transaction history with them, making loyalty less sticky than ever.

Still, high street banks remain deeply embedded in Australia’s financial DNA, especially for complex needs like home loans, business banking, and face-to-face advice.

Should You Stick With a High Street Bank?

For many Australians, the answer depends on personal priorities and financial goals. Here’s what to consider:

• Trust and Stability: High street banks offer government-backed deposit guarantees (up to $250,000 per account holder per institution), robust fraud protection, and decades of experience.

• Comprehensive Products: Need a bundled package—transaction account, home loan, credit card, and insurance? Traditional banks still offer the widest range.

• Fees and Rates: Watch out: legacy banks often have higher account-keeping fees and less competitive rates compared to digital challengers. For example, in 2025, some neobanks are offering savings rates up to 5.10% p.a. with zero monthly fees, while major banks’ base rates hover around 4.25%.

• Personal Service: If you value face-to-face support, complex financial advice, or need assistance with business banking, a high street branch can be invaluable. However, with continued closures, access may be limited.

• Tech Experience: The gap is closing. Major banks now offer advanced apps and seamless digital onboarding, but neobanks often lead in innovation, speed, and transparency.

The Future: A Hybrid Approach?

2025’s landscape suggests most Australians won’t make a binary choice. Many keep a high street bank for core services and reliability, while using digital banks or fintechs for savings, spending, or investment accounts. The real winners are those who shop around—leveraging the strengths of each provider and switching as better options emerge.

Real-world example: Sarah, a Sydney teacher, keeps her mortgage with Westpac but uses Up Bank for day-to-day spending and budgeting tools. She recently switched her term deposit to a digital bank for a higher rate, using open banking to transfer her data seamlessly.