Australia’s banking regulator is sanctioning Westpac for the sudden closure of its Tennant Creek branch

Australia’s banking regulator has publicly sanctioned Westpac over the sudden closure of a bank branch in the isolated Northern Territory town of Tennant Creek.

This disadvantaged town, about 10 hours’ drive south of Darwin, is a key service hub for more than 6,000 people in the remote Barkly region.

Many residents are indigenous people who speak limited English and do not have bank cards, cell phones or internet connections.

In September 2022, hundreds of Westpac customers in Tennant Creek and surrounding remote communities became concerned when they discovered that their local branch had closed without notice.

While some customers have switched to online banking or switched to ANZ, the sudden loss of face-to-face banking has left many people unable to access their money.

Warumungu elder Norman Frank Jupurrrla said the impact of the closure of the Westpac branch was felt immediately.

“It was really hard for retirees to get money… and also for people who didn’t know English or school,” he said.

Norman Frank says Westpac customers panicked when the branch closed. (ABC Alice Springs: Samantha Jonscher)

After a lengthy investigation, the Banking Code Compliance Commission (BCCC) found that Westpac had breached its obligations in a “serious and systemic way” in relation to its sudden exit from Tennant Creek.

“We have imposed sanctions on Westpac, naming them and publishing details of their failure to comply on our website,” the report said.

The watchdog found that Westpac failed to provide customers with information on how to continue accessing its services and failed to provide sufficient support to affected customers following the branch closure.

“The breaches posed a high risk of harm to customers,” said the BCCC report released Tuesday.

“Westpac’s response has been inadequate and slow despite concerns expressed by the community and the BCCC.”

In a statement, BCCC chief executive Ian Govey said “the responsibilities set out in the code are crucial to protecting customers when a bank branch closes.”

“In this case, Westpac has failed to deliver on its promise to customers,” he said.

“Their actions have had a significant and harmful impact on many people in the Tennant Creek community.”

Debt collection for supporters, but banking challenges continue

Kelly Gulliver, CatholicCare NT’s financial and housing support programs manager, has been on the frontline in managing the impact of the Westpac closure.

Within days, her staff in Tennant Creek were inundated with Westpac customers requiring help ordering new key cards, setting up online banking and arranging transfers and withdrawals.

“It goes some way to vindicating the fact that (Westpac) has been held accountable for upholding the code, but it doesn’t really diminish the impact on vulnerable customers at all,” she said.

“We still meet people every day who need help with banking and have accounts with Westpac.”

Kelly Gulliver says CatholicCareNT continues to help Westpac customers.(ABC News: Michael Donnelly)

Member for Barkly Steve Edgington said the BCCC’s findings corroborate reports from the field.

“No notification was received. One day the bank was open and the next day it was practically closed,” he said.

“Westpac should apologize for the way they treated customers at Tennant Creek.”

In a statement, Financial Counseling Australia chief executive Peter Gartlan said the BCCC’s decision “sends a clear message to Westpac and other banks that there are clear procedures to follow when closing branches.”

“People need proper notification, support and access to money,” he said.

Westpac says “safety risks” caused the sudden closure

In a statement, a Westpac spokesman said “continued safety and security threats at Tennant Creek mean we must close the site outside the standard process to protect our people.”

“These circumstances involved the Tennant Creek branch and included damage to our branch and ATM,” the spokesman said.

Frank said the branch’s windows were often broken and the ATM was broken.

A Westpac spokesman said the company still operated the ATM in Tennant Creek. (Delivered)

A Westpac spokesman said the company acknowledged “more could have been done to fully support our customers during the closure” and had since reviewed and improved its branch closure protocols.

He said Westpac continued to provide banking services in Tennant Creek, offering an ATM, remote banking team visits and providing support via its native helpline.