Last year, ANZ Bank (ANZ) announced plans to close 50 branches. However, the Royal Committee learned that a senior executive at ANZ Bank (ANZ) had submitted a plan to expand the closure because analysis showed that closing branches was more feasible than selling them.
As the committee is investigating financial problems affecting remote indigenous areas, Wednesday's ANZ filing included an expedited branch closure report submitted to the CEO for deliberation, labeled "pending decision."
The document was prepared by Catriona Noble, the bank's head of retail distribution, for consideration by CEO Shayne Elliott. It is not clear whether the Elliott has approved the Nobel proposal.
According to a document read out by the committee's legal adviser, Mark Costello, it reads: "it is proposed to expedite the closure of the Australian branch by September 30, 2019. Please approve it."
"the number of branch closures can increase from 50 in 2017 to [blank] in 2018 and 2019," read Costello.
Tony Tapsall, head of ANZ's Northern Territory, said he was not directly involved in writing the document and could not answer specific questions about its content.
ANZ currently has about 640 branches, but analysts have warned all banks that they need to close their branches to lower costs and ease pressure on margins. However, the issue remains sensitive, especially for people in remote areas.
The document also said branches "contribute less" in less developed and remote areas, and that in some urban areas customers are gradually turning to online banking.
The committee also learned on Thursday that it would take four months for ANZ to open a free trading account for clients from remote Aboriginal communities in the Northern Territory. Without a key card, customers will not be able to use the account until more than six months after the first attempt to open the account.