Australian Banking Association seeks approval for 10 regional hubs

• Australian Banking Association seeks competition regulator approval to test shared regional branches.
• The proposed pilot programme will trial 10 shared banking hubs in regional locations.
• Banks aim to maintain face-to-face services while managing declining branch visits.

The Australian Banking Association has applied for Australian Competition and Consumer Commission authorisation to let banks collaborate on establishing shared regional hubs.

The proposal responds to a 63% decline in regional branch visits since 2019, driven by increased adoption of digital banking channels.

“Banks recognise that some customers still prefer face-to-face options even though the number of transactions in branches has plummeted, challenging their viability,” said Australian Banking Association CEO Simon Birmingham.

Under the plan, participating lenders will establish a 10-hub trial selected by factors including distance to existing branches, local population density, and community vulnerability.

The industry group stated that the collaborative structure is designed to preserve access to physical cash and financial advice across regional areas.

Major lenders require regulatory antitrust exemptions to jointly coordinate branch locations and share infrastructure costs without breaching competition laws.