By
Australia’s physical banking network continues to shrink, with new figures showing another sharp decline in branches and ATMs nationwide as more customers move online.
Canstar’s analysis of the Australian Prudential Regulation Authority’s (APRA) latest Points of Presence data shows that 155 branches closed in the 2024-25 financial year, leaving 3,205 across the country. That marks a 5% drop in one year and a 33% decrease over five years. ATM numbers have also fallen sharply, down 333 in the past year to 5,143 – nearly half the total recorded in 2020.
The ongoing contraction reflects the steady shift to digital banking, which has accelerated as customers increasingly rely on apps and online platforms for everyday transactions. Canstar’s data insights director, Sally Tindall (pictured), said the trend was unlikely to reverse anytime soon.
“Bank branches are continuing to disappear as Australians and banks continue to go digital. While the rate at which bank branches are closing their doors is continuing to slow, it’s little comfort to those whose local branch has shut up shop,” Tindall said.
The decline has been most pronounced in major cities, which accounted for 81% of all branch closures in the past year. The number of urban branches dropped by 126 to 1,746, a 7% fall since 2024 and a 40% decrease compared to 2020. In contrast, the pace of closures in regional areas has slowed. Only 29 branches shut in inner regional, outer regional, remote, and very remote locations in 2024–25, compared to 52 the year before.
The slowdown follows an agreement between the federal government and the major banks earlier this year to maintain regional branches until at least mid-2027. Despite this, the regional network remains smaller than it was five years ago. Inner regional areas now have 828 branches, down by 252 since 2020; outer regional areas have 506, while remote and very remote areas have 87 and 38 respectively.
Still, all four major banks reduced their branch networks during the year despite the regional moratorium. Commonwealth Bank of Australia (CBA) closed 49 branches, Westpac 25, ANZ 21, and National Australia Bank (NAB) three. Compared with 2020, ANZ’s network has halved while Westpac’s has fallen by 46%.
The number of ATMs has continued to drop alongside branches. There are now 5,143 across Australia, down 6% in a year and 47% since 2020. Western Australia recorded the biggest annual decline, losing 13% of its ATMs.
Bank@Post outlets – which allow customers to make deposits, withdrawals, and balance inquiries through participating Australia Post branches – have also declined slightly. There are now 3,365 outlets, 62 fewer than a year ago and down 182 compared with 2020. The service remains available to customers of CBA, NAB, and Westpac, while ANZ is still in the process of joining the network.
“For some smaller towns, the local post office might be the only place where people can still deposit cash, take out money or pay bills. The shift to digital banking is well and truly underway, but banks, government and regulators still need to work together to make sure innovation doesn’t come at the expense of inclusion,” Tindall said.
