Business
12 April, 2025
Customers come first
SMALL banks, such as Cairns Bank, are tired of picking up the slack left behind by the big four.
A collective of 19 regional banks are fighting for a better deal to meet the increasing costs of maintaining services to the people in the Far North, including access to cash, advice on banking services and help in dealing with scams and fraud.
The group has written to major political parties and independents seeking their support in the lead up to the election.
Cairns Bank chief executive officer Liam Tiernan said that regional banks were a vital community service, especially for cash services which were currently provided with little support from big banks who profited most from the financial system in Australia.
“Cash accessibility is vital for a regional city like ours,” he said.
“Our tourism industry deals a lot in cash transactions from overseas visitors and many locals prefer to use cash.
“Cairns and Far North Queensland are often more susceptible to natural disasters that may lead to digital outages that can affect peoples’ ability to access their finances.
“Cash-in-transit costs currently disadvantage regional communities and regional banks are left to carry the cost burden”.
Mr Tiernan said that any new government needed to ensure that discussions about the future of Armaguard and cash-in-transit services included regional banks and other regional stakeholders who were currently forced to pay the highest costs for cash services.
The big banks have closed more than 800 regional branches since 2017, as they push Aussies toward cheaper digital services, with regional bank branches maintaining the face-to-face services that customers require.
Mr Tiernan said in many regional centres, small banks ended up acting as de facto branches for the big banks which had abandoned those regions.
In a process known as ‘pass-through banking’, customers use regional bank branches for costly services, like cash handling, and then transfer their funds to big banks who enjoy the profits.
The group wants a levy on big banks who profit most from its customers and yet fall short on investment in regional Australia. It would ensure big banks meet baseline community expectations, either directly though their own regional branch networks, or via a levy to keep regional banking services available.
