The number of bank branches across Australia fell by 155 in the past financial year – and more than 1,500 over the past five years – as the shift to digital banking continues to reshape how Australians manage their money.
New analysis from Canstar.com.au of APRA’s Points of Presence data to June 30 shows a steep decline not only in branches but also in ATMs, which dropped by 333 over the year and 4,478 since 2020.
While total branch numbers have fallen to 3,205 nationwide, the rate of closures in regional and remote areas has slowed. In FY25, regional branch numbers fell by 29, compared to 52 the previous year – a slowdown linked to the big four banks’ pledge to maintain regional branches until mid-2027 under a federal government agreement.
The major banks accounted for most of the latest drop, closing 98 branches between them during FY25.
Australia Post’s Bank@Post network remains a key access point for banking services, particularly in regional areas. As of June 2025, there were 3,365 outlets offering Bank@Post, down slightly from last year.
Sally Tindall (pictured), Canstar data insights director, said the figures show an ongoing but uneven contraction in physical banking access.
“Bank branches are continuing to disappear as Australians and banks continue to go digital,” Tindall said.
“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. At the end of the day, 155 bank branch closures across the country is still significant.”
She noted that the regional slowdown offered “some comfort,” but uncertainty remains about what happens after 2027.
“The big four banks did the right thing back in February by committing to keep regional branches open until at least mid-2027, but there’s still a huge question mark over what the longer-term future of these branches will look like,” Tindall said.
She added that while digital adoption is accelerating, inclusion must remain a policy focus.
“Bank@Post continues to play a vital role in filling the gaps left by the branch and ATM closures,” Tindall said. “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.”
Over the five years to 2025, branch numbers are down 33%, ATMs down 47%, and Bank@Post sites down 5%. For brokers, the data underscores a long-term structural change in how customers engage with banks – and highlights opportunities for adviser-led services as face-to-face banking becomes less accessible.
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