Spurred on by bank branch closures, 20 local Councils across Australia have now passed motions endorsing the Australian Citizens Party’s proposal for a national postal bank — a new people’s bank, which would save essential postal and banking services for all communities.
Ranging from large metropolitan Councils in Sydney to small regional Councils in WA and far north Queensland, they all recognise that their communities are at risk from the banks’ mad rush into cashless, digital banking, regardless of the consequences for:
- Elderly and other vulnerable customers;
- Regional and remote communities without reliable mobile phone and internet coverage;
- Small businesses that need to deposit and withdraw cash; and
- Local economies cut off from credit and financial services.
A public People’s Bank based in Australia’s 4,000 plus post offices would:
- Ensure all communities in Australia would always have face-to-face banking services;
- Expand revenue for Australia Post and post offices to support essential postal services, which are also at risk; and
- Increase competition for the Big Four banking cartel, so the risk of losing customers to the public post office bank scares them into stopping their branch closures.
Following are the Councils that have endorsed the post office People’s Bank:
- Narrabri Shire Council, NSW;
- Banana Shire Council, QLD
- Shire of Yilgarn, WA
- Cobar Shire Council, NSW
- Strathfield City Council in Sydney, NSW
- Shire of Flinders, QLD
- City of Wagga Wagga, NSW
- District Council of Coober Pedy, SA
- Latrobe City Council, Vic
- Livingstone Shire Council, QLD
- Shire of Dowerin, WA
- Etheridge Shire Council, QLD
- Ballina Shire Council, NSW
- Mornington Shire Council, QLD
- Upper Hunter Shire Council, NSW
- Derwent Valley Council, TAS
- Barkly Regional Council, NT
- Cumberland City Council, Sydney NSW
- Barunga West Council, SA
- Temora Shire Council, NSW
Competition
The private banks’ greatest fear is having to compete with a public bank again.
For years they whined about competing with the Commonwealth Bank, and lobbied for its privatisation, which Paul Keating started, and John Howard finished in 1996.
But for the 84 years the private banks competed with the people’s Commonwealth Bank, and the more than a century they competed with public state banks, the private banks were still profitable—but they had to provide a decent service to earn their profits.
The councils have been closely observing a concerning trend since the privatization of the Commonwealth and all State banks. They have noted that private banks, holding a monopoly on banking, have exploited their position by reducing services through mass branch closures. The councils have observed that the banks’ business model has evolved from one that helped customers profit to one focused on gouging profits through fees, charges, and interest rates.
The councils have also noticed that the advent of digital technology has amplified this concerning shift, allowing banks to maximize profits by taking a share of every digital transaction and monetizing the mass collection of transaction data. They believe that the current generation of bank management, driven by sheer greed, is aggressively pushing this model onto everyone by closing branches, removing ATMs, and advocating for a cashless society. Unfortunately, the councils believe that this push disregards the consequences for communities and customers who may not be prepared or willing to embrace this digital transformation.
Australia’s Digital Inclusion Index, compiled by Swinburne University, RMIT and Telstra, is at 73.2, which means that 26.8 per cent of Australians, or around 6 million people, are digitally excluded, and need face-to-face services, but the banks, corporations—and too many politicians who have presided over government policies that are also aggressively forcing people to go digital, like MyGov—simply don’t care.
A national post office People’s Bank would provide the services Australians need.
Justin Lavadia is a content producer and editor at Public Spectrum with a diverse writing background spanning various niches and formats. With a wealth of experience, he brings clarity and concise communication to digital content. His expertise lies in crafting engaging content and delivering impactful narratives that resonate with readers.
