Yesterday, a Westpac spokesman confirmed the bank would close on Thursday, August 7, citing low transaction numbers as customers moved to online services.
Earlier this year, the Otago Daily Times reported a leaked Westpac document showing closure was proposed as transaction volumes at the Mosgiel branch had been falling steadily for many years — by 20% in the year-to-May alone.
Mosgiel Taieri Community Board chairman Andrew Simms, who is a Dunedin City Council mayoral candidate, said the closure of a "vital" service was a blow for the area.
He said banking was a utility and Westpac’s considerations should "go beyond the profit motive".
"While we do understand the commercial pressures that perhaps Westpac are under with a lot of people choosing to do their banking online now, their decision just ignores, in particular, the elderly population in Mosgiel, who may not be completely OK with that, and who are still dependant on a physical presence."
He was also disappointed with the lack of "any meaningful dialogue" from the bank to the community on the decision.
"I’m a Westpac customer based in Mosgiel, and I certainly haven't had a letter or anything from them."
Taieri MP Ingrid Leary said it was frustrating there was no legalisation surrounding the impact of banks withdrawing from towns.
"As digital as the world is becoming, there will always be a small portion of the community, including many seniors and disabled people, who need personal service rather than online service," she said.
"Westpac is acting within its statutory rights.
"It is able to vacate Mosgiel, as have other major banks, and that's frustrating for those who will need face-to-face services and will need to travel over the hill into town."
It was unfortunate New Zealand’s laws and regulatory framework did not recognised the social element of "many of these so-called commercial businesses".
Westpac’s spokesman said a Smart ATM was planned near the Mosgiel branch.
"We also intend to have a banker in Mosgiel available on Wednesdays from 9.30am to 4pm to help customers with queries and provide digital assistance, for an initial period of six months," he said.
"We’ll be contacting customers in the near future to inform them of the closure and other ways they can do their banking with us, including in-person at our Moray Place or South Dunedin branches."
