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Head of regional and agribusiness at Think Mortgage, Nic Wilson, said many borrowers who require funding for agricultural and commercial ventures are struggling, as branches close and relationship managers are relocated.
He said there have been many instances of these regional clients who are suffering from a lack of personalised service, as many are now dealing with “centralised hubs” that cover massive areas.
The need for personalised service is even greater in regional communities, Wilson said, as agriculture and commercial financing are complex.
“In my experience, when a farmer or regional business owner wants to talk through their finance options, they prefer to do it in person,” Wilson said.
The major banks agreed to stall regional bank branch closures, after there was pushback from communities.
Treasurer Jim Chalmers announced he secured commitments from CBA, ANZ, NAB, and Westpac to extend the moratorium on branch closures until mid-2027.
However, Wilson said that there has still been a 36 per cent decline in regional branches since 2017.
“Branches have either shut completely or cut back their hours, and many relationship managers who used to be based in regional areas are now covering huge territories from centralised hubs,” Wilson said.
Many agriculture workers are being forced to travel to organise financial matters, taking precious time away that could be spent working.
This is placing even further strain, as many are forced to juggle responsibilities.
Wilson called for banks to strike a balance. The digitisation of services takes the human element away from important decisions.
[Related: Majors agree to pause on regional branch closures]
