Queenstown in Tasmania lost its last bank branch, Bendigo Bank, two weeks ago and residents are now facing cash shortages. (Source: AAP\/Supplied) <\/p>\n
A Tasmanian town<\/a> is running out of cash after its last bank branch<\/a>, Bendigo Bank, closed its doors. The local Australia Post outlet<\/a> has seen a spike in demand following the closure and is now pleading with residents to deposit their cash.<\/p>\n Bendigo Bank<\/a> closed its Queenstown branch and removed its ATM two weeks ago, leaving residents with a four-hour round trip<\/a> to their nearest branch in Burnie. There is only one other ATM in town, an ATMx by Armaguard, which charges fees.<\/p>\n Resident Janet Lay told Yahoo Finance local Australia Post<\/a> 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 \u201clining up out the door\u201d.<\/p>\n RELATED<\/p>\n \u201cIt\u2019s a great service and lovely people, but it cannot meet the demands of the town\u2019s banking requirements,” Lay said.<\/p>\n The 47-year-old carer said the post office had run out of cash twice<\/a> in the last two weeks, with the first time happening later in the week so it was caught short. \u201cIt 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,\u201d she said.<\/p>\n Do you have a story to share? Contact tamika.seeto@yahooinc.com<\/a><\/p>\n 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.<\/p>\n \u201cWe need your cash please! We are nearly out of $50 notes,\u201d it told the community yesterday on its Facebook page.<\/p>\n An Australian Post spokesperson told Yahoo Finance it was monitoring the situation in Queenstown.<\/p>\n “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.<\/p>\n “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.”<\/p>\n 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.<\/p>\n Bendigo Bank’s closure has also had knock-on impacts on the local IGA supermarket<\/a>. It has been forced to implement a minimum $20 purchase for cash withdrawals since the bank\u2019s closure and has lowered the maximum withdrawal amount from $500 to $200.<\/p>\n Story Continues <\/p>\n \u201cThey were being slammed with people going in to withdraw money via EFTPOS. They were then running out of money,\u201d Lay said.<\/p>\n The local resident said she predominantly transacts with cash and previously did her banking in person, including paying her mortgage.<\/p>\n \u201cSome people have gone down the card path, but still, a lot of people use cash,\u201d she said.<\/p>\n The Queenstown branch was one of 10 branches that Bendigo Bank confirmed it would be closing<\/a> from August. It will also close 28 of its agency locations<\/a>.<\/p>\n This will leave other regional communities like Yarram in Victoria\u2019s South Gippsland region<\/a> without a bank, along with Bannockburn and Korumburra in Victoria, and Malanda in Queensland.<\/p>\n 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.<\/p>\n \u201cThe Bank apologises for any inconvenience. Bendigo Bank is proud of its regional heritage and operates Australia\u2019s second largest regional branch network,\u201d a spokesperson said.<\/p>\n \u201cTo preserve our ability to continue delivering for our customers and communities, we must ensure our branches are adequately supported and resourced.\u201d<\/p>\n The federal government struck a deal with the Big Four banks in February<\/a>, where they have committed to keeping their regional banks open until at least mid-2027. This doesn\u2019t cover mid-tier banks like Bendigo.<\/p>\n Bank@Post is available in more than 3,500 post offices, with about 1,150 post offices providing the only banking services in town.<\/p>\n It manages $10 billion in deposits and withdrawals each year, which is more than initially anticipated<\/a>. Banks have closed some 800 branches in regional Australia since 2017.<\/p>\n NAB<\/a>, CBA<\/a> and Westpac<\/a>, along with about 80 other lenders, had been paying Australia Post about $90 million a year to provide basic banking services.<\/p>\n ANZ<\/a> agreed earlier this year to join Bank@Post, with Australia Post striking new arrangements with the banks in February.<\/p>\n Lay said she was disappointed with Bendigo Bank\u2019s handling of the closure<\/a>, with the community receiving no consultation. She is now considering changing banks.<\/p>\n \u201cThey just don\u2019t have a heart,\u201d she said.<\/p>\n Meanwhile, Queenstown is about to enter its tourist season with The Unconformity contemporary arts festival taking place from next week.<\/p>\n \u201cWe\u2019re coming into our peak tourist season, so that\u2019s going to lead to more days that the town will just run out of money,\u201d she said.<\/p>\n Get the latest Yahoo Finance news – follow us on Facebook<\/a>, LinkedIn<\/a> and Instagram<\/a>.<\/p>\n Bendigo Bank announced the closure of 10 branches and 28 agency locations, leaving communities like Queenstown with no bank. (Source: Supplied) <\/p>\n
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) <\/p>\n
People outside Treasurer Jim Chalmers office on a ‘Day of Action’ opposing the Queenstown bank closure in August. (Source: Supplied) <\/p>\n