Banking committee to ‘prioritise’ Bank@Post compliance

In response to the increasing reliance on Bank@Post services following widespread bank branch closures across Australia, the Banking Code Compliance Committee (BCCC) has made it a priority to ensure compliance with the Banking Code of Practice.

Collaborating with the Australian Banking Association (ABA) and its 12-member banks, the BCCC aims to safeguard consumer protections and enhance oversight of banking services provided through Bank@Post outlets.

According to the Finance Sector Union, approximately 64 per cent of bank branches in regional Australia have closed in the past five decades, prompting concerns over reduced banking services in affected communities.

In light of this, two recent inquiries, namely the Regional Banking Taskforce inquiry and a Senate inquiry into regional bank closures, have underscored the social and economic impact on small businesses, agribusinesses, and the wider community.

As such, Bank@Post, a partnership between Australia Post and banks, operates through over 3,500 participating outlets, offering face-to-face banking services such as cash and cheque deposits, cash withdrawals, and balance inquiries.

While Australia and New Zealand Bank (ANZ) has been called out by the Senate for having “more of a trend in being the first major bank to leave town”, it is also the only big four that is not a participating member of Bank@Post.

For the 12 participating member banks, as part of the Banking Code of Practice, Bank@Post has obligations to ensure critical customer protections, including trained staff, care for vulnerable customers, and inclusive and accessible banking, particularly in remote areas.

The BCCC is currently investigating — “as a priority” — the adequacy of existing measures to ensure compliance with the code with a specific focus on consumer protections related to Bank@Post services.

Working in collaboration with the Customer Owned Banking Code Compliance Committee (COBCCC), the BCCC aims to ensure effective oversight, systems, and processes. Regular reporting requirements will monitor the progress made by banks in meeting their obligations.

Chair of the BCCC, Ian Govey AM, said with the increasing reliance on Bank@Post as an alternative to traditional in-person banking at branches, “it is crucial banks ensure these services comply with their code obligations”.

“We are working with key stakeholders on this and we will monitor the progress banks are making through our regular reporting requirements,” Mr Govey said.

While the BCCC has identified this as a priority, it recognises that there are a limited number of code obligations that apply to Bank@Post services.

Acting chief executive of the BCCC, René van de Rijdt, highlighted the crucial role of code obligations in providing protections to Bank@Post customers, including those experiencing vulnerability.

“While we know there are limited obligations for Bank@Post in the code, they are obligations that provide critical protections for customers,” Mr van de Rijdt said.

“We see banks continuing to improve their practices to meet the needs of customers experiencing vulnerability and to deliver inclusive and accessible services.”

The BCCC will work with the ABA to ensure a coordinated approach, including reviewing compliance frameworks, implementing appropriate measures, promoting awareness of the code, and providing adequate training for Bank@Post staff.

The ABA will develop a targeted work plan by the end of the year, addressing areas of concern identified by the BCCC.

A final report on these issues is expected to be provided in the second half of 2024.

[Related: Digital banking is 'paramount' regional bank closure inquiry hears]