Australia Post which is key to the retail industry and online retailers when it comes to delivery services in rural and remote areas, has now reached an agreement with banks to offer more services from Australia Post sites in regional areas.
Major banks and the federal government have reached a deal to increase funding for Bank@Post, the banking operations of Australia Post.
The Australian Banking Association revealed on Tuesday that the sector had struck a deal to extend a ban on regional branch closures until 2027 “despite branch interactions falling by 50 per cent in recent years as customers switch to digital channels”.
Under the new deal, ANZ Bank has agreed to join Bank@Post by October 1. Macquarie has begun negotiations to join, while HSBC will start talks, reported the Australian Financial Review.
It will allow customers in Australia Posts’ regional branches to do simple over-the-counter banking procedures, and increase funding for Australia Post which reported a pre-tax loss of $88.5 million for the 2024 financial year, compared to the previous year’s $200.3 million deficit.
Three other major banks – Commonwealth Bank, Westpac and National Australia Bank – and about 80 other lenders have been paying Australia Post about $90 million a year to provide basic banking services.
Paul Graham, Australia Post chief executive, said he had received updated, in-principle agreements from the three big banks to revise current contracts.
“The improved arrangements and ANZ’s membership help ensure Bank@Post is on a more sustainable financial pathway and that Australia Post can continue providing essential banking services in the many communities where there are no other banking services available,” said Graham.
“The new agreements will also help maintain the sustainability of thousands of Licensed Post Offices, many of which are small businesses run by families who play an essential role in servicing their local communities.”
Bank@Post is available in 3,500 post offices and is managing around $10 billion in deposits and withdrawals each year.
Around 1,150 post offices are providing the only banking services in rural towns after several banks closed 800 branches in regional Australia since 2017.
