A prominent Australian customer-owned financial institution is confronting significant criticism following its decision to shutter multiple physical locations across the country. People First Bank, formed through the recent merger of Heritage Bank and People’s Choice Credit Union, has announced plans to close 15 branch offices and three agency outlets, triggering concerns about customer abandonment in regional communities.
The Financial Sector Union has vehemently opposed the decision, highlighting that the closures contradict previous commitments made during the 2022 merger negotiations that guaranteed branch network stability. According to union representatives, the banking network has already contracted by approximately 40 percent since the consolidation was finalized in 2023.
Julia Angrisano, National Secretary of the Financial Sector Union, criticized the institution for prioritizing profitability over community service. “While publicly professing support for customers and communities, the bank’s actions demonstrate contradictory priorities,” Angrisano stated. “Local banking services are being systematically eliminated despite the organization reporting consistently rising profits.”
The closures will disproportionately affect vulnerable demographic groups including elderly customers, individuals with disabilities, and small business owners who depend on in-person banking services. Certain Queensland communities including Oakey and Pittsworth will be left without any physical banking facilities, forcing residents to travel distances up to 150 kilometers to access face-to-face financial services.
Bank executives have defended the decision as necessary adaptation to evolving consumer behavior. Chief Customer Officer Maria-Ann Camilleri characterized the move as “difficult but inevitable,” noting that less than one percent of transactions now occur through physical branches with fewer than 0.7 percent of customers regularly utilizing in-person services.
The institution has committed to retaining all affected employees through alternative role offerings and emphasized that digital banking services remain available through mobile applications and internet platforms. Additionally, customers will maintain access to cash services via ATMs, EFTPOS systems, and Australia Post banking facilities located near the affected branches.
Despite these assurances, the union maintains that the bank’s 7 percent profit increase during the previous financial year undermines claims of financial necessity driving the branch closures.