People First Bank has ignited a wave of public outrage after announcing the permanent closure of 18 branches nationwide, affecting customers across Queensland, South Australia, Victoria, and the Northern Territory. The decision, set to take effect at 4 pm on April 4, 2025, has sparked backlash from customers and union representatives who argue that the move will negatively impact communities, particularly in regional areas.
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Why Is People First Bank Closing Branches?
The closures include 11 Heritage Bank branches and seven People’s Choice branches. The bank cites shifting customer preferences towards digital banking as the primary reason for the decision. According to Chief Customer Officer Maria-Ann Camilleri, in-branch transactions now account for less than 1% of all banking activity, with fewer than 0.7% of affected customers using a branch every month.
“Increasingly, our customers are choosing ATMs, internet banking, and our app for their day-to-day banking,” Camilleri explained. “While these decisions are challenging, we need to prioritize the services our customers use most. This means reallocating people and resources to higher-demand areas, such as our 24/7 contact center, and investing in technology to meet customers’ need for simple, convenient digital banking.”
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Which Branches Are Closing?
Queensland – Heritage Bank Branches
- Beenleigh
- Brookside
- Capalaba
- Indooroopilly
- Noosa Civic
- Nambour
- Mermaid Waters
- Nerang
- Strathpine
- The Pines Elanora
- Victoria Point
South Australia, Victoria, Northern Territory – People’s Choice Branches
- Seaford (SA)
- Northpark (SA)
- Victor Harbor (SA)
- Gawler (SA)
- Warrnambool (VIC)
- Maryvale (VIC)
- Darwin (NT)
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Union Condemns Closures as a Betrayal of Communities
The Finance Sector Union (FSU) has slammed the decision, accusing the bank of failing the very people it claims to prioritize.
“These aren’t the first branch cuts of 2025, but they are the largest,” said FSU National Assistant Secretary Jason Hall. “It also really plumbs the depths of irony for a bank calling itself People First to start their new brand by slashing branches and staff. This is an attack on regional communities that depend on local bank branches.”
How Will Customers Be Affected?
People First Bank has assured customers that in-person banking and cash access will still be available through alternative means, including ATMs, EFTPOS, and Australia Post banking services. Additionally, the bank has promised that regular users of affected branches will receive notifications and support during the transition.
“For the overwhelming majority who bank digitally, this change will have little to no impact,” Camilleri stated. “For the small number of customers who use the affected branches, we have a range of options available so they can continue to bank with us.”
The bank also confirmed that affected employees have been offered alternative roles within the company to mitigate job losses.
The Bigger Picture: A Digital Banking Shift?
This wave of closures is part of a broader trend in the banking industry, where financial institutions are increasingly moving towards digital-first strategies. However, while this shift may be convenient for many, critics argue it disproportionately affects elderly customers, rural communities, and those who rely on in-person banking services.
As People First Bank moves forward with its restructuring, the controversy surrounding its decision highlights the ongoing struggle between technological advancements and the need to maintain accessible financial services for all Australians.
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