People First Bank has announced it will permanently close 18 branches across Australia, citing changing customer preferences and a decline in branch visits. The closures will result in nearly 100 job losses and have been met with criticism from the Finance Sector Union (FSU), which described the move as a “devastating abandonment” of customers.
Shift to Digital Banking
The decision affects 11 Heritage Bank branches in Queensland and seven People’s Choice Credit Union branches across Queensland, South Australia, Northern Territory, and Victoria. These closures will take effect from April 4.
People First Bank, a customer-owned institution formed in March 2023 following the merger of Heritage Bank and People’s Choice Credit Union, attributed the decision to the increasing use of digital banking.
Chief customer officer Maria-Ann Camilleri said branch transactions now make up less than 1% of total banking activity, with only 0.7% of affected customers visiting a branch on a monthly basis.
“Increasingly, our customers are choosing ATMs, internet banking, and our app for their day-to-day banking,” Camilleri said.
List of Affected Branches
Heritage Bank branches closing in Queensland
- Beenleigh
- Brookside
- Capalaba
- Indooroopilly
- Noosa Civic
- Nambour
- Mermaid Waters
- Nerang
- Strathpine
- The Pines Elanora
- Victoria Point
People’s Choice Credit Union branches closing
- Northern Territory: Darwin
- Victoria: Maryvale, Warrnambool
- South Australia: Gawler, Victor Harbor, Seaford, Northpark
Camilleri acknowledged the impact of these closures on local communities but emphasized the need to reallocate resources to higher-demand areas, including the bank’s 24/7 contact center and digital banking infrastructure.
Union and Community Backlash
The Finance Sector Union strongly criticized the decision, particularly the impact on regional communities. Assistant secretary Jason Hall labeled the move an “attack on regional communities”, highlighting that five of the affected branches are outside major cities.
“While these aren’t the first branch cuts of 2025, they are the largest,” Hall said. “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, putting last the people they claim to put first.”
The FSU estimates nearly 100 jobs will be lost, though People First Bank has stated that affected employees will be offered alternative roles within the organization.
Broader Trend of Branch Closures
People First Bank is not the only financial institution reducing its branch network. Bank of Queensland (BOQ) recently announced it would close 14 branches across Queensland, Victoria, New South Wales, and Western Australia between February 19 and 27.
A report from the Australian Banking Association (ABA) found that face-to-face interactions at bank branches declined by 47% between 2019 and 2023, while phone calls dropped by 26%. The report also noted that 99.1% of customer interactions now occur via digital channels such as mobile apps and online banking.
Camilleri maintained that the People First Bank closures would have little impact on most customers, given the widespread shift to digital banking.
“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,” she said, pointing to alternative branches, ATMs, and Australia Post banking services.
While digital banking continues to reshape the financial sector, the debate over accessibility and community impact remains a growing concern for customers and industry groups alike.
