Queenstown in Tasmania lost its last bank branch, Bendigo Bank, two weeks ago and residents are now facing cash shortages. (Source: AAP/Supplied)
A Tasmanian town is running out of cash after its last bank branch, Bendigo Bank, closed its doors. The local Australia Post outlet has seen a spike in demand following the closure and is now pleading with residents to deposit their cash.
Bendigo Bank closed its Queenstown branch and removed its ATM two weeks ago, leaving residents with a four-hour round trip to their nearest branch in Burnie. There is only one other ATM in town, an ATMx by Armaguard, which charges fees.
Resident Janet Lay told Yahoo Finance local Australia Post store was now essentially the entire community’s main banking option through its Bank@Post function. She said it’s struggling to keep up with the added demand, with people often “lining up out the door”.
RELATED
“It’s a great service and lovely people, but it cannot meet the demands of the town’s banking requirements,” Lay said.
The 47-year-old carer said the post office had run out of cash twice in the last two weeks, with the first time happening later in the week so it was caught short. “It was too late for them to get more money, which had a knock-on effect of people not having money for the weekend and businesses being short with their floats for the weekend,” she said.
Do you have a story to share? Contact tamika.seeto@yahooinc.com
Bendigo Bank announced the closure of 10 branches and 28 agency locations, leaving communities like Queenstown with no bank. (Source: Supplied)
The Queenstown Australia Post has been urging residents to deposit cash in the morning to ensure it has enough cash for withdrawals throughout the day.
“We need your cash please! We are nearly out of $50 notes,” it told the community yesterday on its Facebook page.
An Australian Post spokesperson told Yahoo Finance it was monitoring the situation in Queenstown.
“Australia Post continues to provide essential over-the-counter services in communities across Australia, including everyday banking through our Bank@Post service with participating banks,” the spokesperson said.
“Following the recent closure of the last remaining bank in Queenstown, Tasmania, we are closely monitoring local customer needs, and taking steps to provide additional cash management support for post office and community.”
Residents are now using the local Australia Post to do their in-person banking, with the alternative a four-hour round trip to a branch in Burnie. (Source: Gary Houston)
Bendigo Bank currently charges a $2.50 withdrawal Bank@Post fee on its everyday transaction account. However, it has agreed to waive this for residents for a period of time.
Bendigo Bank’s closure has also had knock-on impacts on the local IGA supermarket. It has been forced to implement a minimum $20 purchase for cash withdrawals since the bank’s closure and has lowered the maximum withdrawal amount from $500 to $200.
Story Continues
“They were being slammed with people going in to withdraw money via EFTPOS. They were then running out of money,” Lay said.
The local resident said she predominantly transacts with cash and previously did her banking in person, including paying her mortgage.
“Some people have gone down the card path, but still, a lot of people use cash,” she said.
The Queenstown branch was one of 10 branches that Bendigo Bank confirmed it would be closing from August. It will also close 28 of its agency locations.
This will leave other regional communities like Yarram in Victoria’s South Gippsland region without a bank, along with Bannockburn and Korumburra in Victoria, and Malanda in Queensland.
A Bendigo Bank spokesperson told Yahoo Finance the closures followed a review of evolving customer preferences, a reduction in business activity, and an increase in costs.
People outside Treasurer Jim Chalmers office on a ‘Day of Action’ opposing the Queenstown bank closure in August. (Source: Supplied)
“The Bank apologises for any inconvenience. Bendigo Bank is proud of its regional heritage and operates Australia’s second largest regional branch network,” a spokesperson said.
“To preserve our ability to continue delivering for our customers and communities, we must ensure our branches are adequately supported and resourced.”
The federal government struck a deal with the Big Four banks in February, where they have committed to keeping their regional banks open until at least mid-2027. This doesn’t cover mid-tier banks like Bendigo.
Bank@Post is available in more than 3,500 post offices, with about 1,150 post offices providing the only banking services in town.
It manages $10 billion in deposits and withdrawals each year, which is more than initially anticipated. Banks have closed some 800 branches in regional Australia since 2017.
NAB, CBA and Westpac, along with about 80 other lenders, had been paying Australia Post about $90 million a year to provide basic banking services.
ANZ agreed earlier this year to join Bank@Post, with Australia Post striking new arrangements with the banks in February.
Lay said she was disappointed with Bendigo Bank’s handling of the closure, with the community receiving no consultation. She is now considering changing banks.
“They just don’t have a heart,” she said.
Meanwhile, Queenstown is about to enter its tourist season with The Unconformity contemporary arts festival taking place from next week.
“We’re coming into our peak tourist season, so that’s going to lead to more days that the town will just run out of money,” she said.
Get the latest Yahoo Finance news – follow us on Facebook, LinkedIn and Instagram.