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BankSA's announcement about closing its Kapunda branch is another sign banks are "deserting regional South Australians", Member for Frome Penny Pratt says.
Key points:
- Kapunda near the Barossa Valley is without a bank after its BankSA branch closed
- The local MP says it's a huge disappointment for the community
- The bank says its decision was driven by a decline in customers at the branch
BankSA alerted customers it was closing the branch, the last remaining bank for the region, permanently on Friday.
The closest branch for residents will be in Nuriootpa, 23 kilometres away.
"It's a really big deal, and I have to say in Kapunda today it's BankSA raining on our parade," Ms Pratt said.
"Of course, it's a 20-minute drive from here to Nuriootpa for those who can. Let's not assume in this cost-of-living climate people are going to be prepared to spend even more on fuel to make that travel.
"It only gets worse, it's a 30-minute drive down to Gawler or a 50-minute drive backwards to Clare, so the alternatives are pretty grim."
Ms Pratt said people in the town including sporting club representatives would be forced to use withdrawal services at the post office.
"Certainly locals have raised through my electorate office there [in Kapunda], it's not just disappointment, it's anger at a loss of services," she said.
"There's going to be a line up out the door for money withdrawal services [at the post office] and I think we should all aspire to do more and have more in country SA."
Towns being left behind
BankSA said the declining customer use of the branch forced the closure.
"Our customers in Kapunda can continue to access the same cash services locally (including withdrawing cash, depositing cash and cheques, and checking account balances) via Bank@Post at Kapunda Australia Post, just 130 metres from our current branch," a BankSA spokesperson said.
"We will continue to support our customers in Kapunda and will work with the Light Regional Council to offer community educational services as needed."
Ms Pratt said she had contacted BankSA with a "please explain" request about the Kapunda branch closure.
"Unfortunately this is commonplace and we're getting used to reports of branches closing, but it is clear that banks are deserting regional South Australians."
Regional Banking Taskforce findings stand
NSW Senator and co-chair of the Regional Banking Taskforce Perin Davey said recommendations from the taskforce's report still stand despite claims the data used about the number of banks still operating in regions were inaccurate.
Some of the recommendations included improving communication with regional towns about bank closures and supporting vulnerable people to access bank services.
Ms Davey said there was no way to stop regional bank closures.
"The only way you could do that is to actually regulate the financial sector," she said.
"And my understanding is there is very little appetite across the board for that to occur because you would actually be demanding that they keep open businesses that are running at a loss."