The Mutual Bank has joined the fight for a better deal to meet the increasing costs of helping its regional customers who need access to cash, and trained assistance in dealing with scams and fraud.
Our CEO Mark Williams said The Mutual Bank’s seven branches play a key role in supporting the communities it serves but, like many small regional banks, are challenged with avoiding becoming “pass-through” branches for the major banks.
The Mutual Bank has joined an alliance of 19 regional banks calling for the introduction of a shared cost model to support the vital services provided by bank branches in regional communities such as cash handling, assistance for seniors or people with a disability and support with scams and fraud. Under a shared cost model, big banks whose regional branch investment falls short of the industry average would be required to assist. As such, the model will ensure that all banks meet or exceed those baseline expectations, either directly through their own regional branch network, or via the shared costs model.
“The Mutual Bank’s purpose is to champion financial wellbeing for our Members and regional communities, to help people thrive, and our branch network plays a vital role in achieving that purpose” said Mark.
“Big banks that profit most from Australia’s financial system should be required to share the cost of supporting essential regional banking infrastructure in regional, rural and remote Australia as a fundamental part of their community service obligation. Regional bank branches are vital to these communities because they provide key services such as cash handling, advice to customers as well as help in handling scams and fraud”.
“The Mutual Bank is the only bank in Dungog and Mayfield and has fulfilled a much-needed gap for those communities in being able to access essential banking services.”
Mark said while the bank had seen an increase in customers and branch transactions in those locations, the challenge remained to ensure it was not simply acting as a conduit to funnel funds back to the major banks who have withdrawn their support in those communities.
“Our bank branches offer secure services and personal, professional advice that cannot be replaced by post offices or ATMs,” he said.
The alliance is also calling for regional banks to be a part of discussions about the future of Armaguard and cash-in-transit services which are more expensive for regional banks.
