A leaked Westpac document, obtained by the Otago Daily Times, shows closure had been proposed because transaction volumes at the Mosgiel branch had been falling steadily for many years — by 20% over the past 12 months alone.
While no final decisions had been made yet, the document said if the closure did go ahead, all staff would be redeployed to Westpac’s Moray Pl branch and regular customers would be informed about what the closure meant for them.
It also said a Smart ATM would be installed in Mosgiel, and the bank would explore a community banking offering, to help continue to serve local customers’ needs.
Yesterday, a Westpac New Zealand spokesperson said they could not confirm there was a proposal to close the branch.
"We have nothing to announce in regard to our Mosgiel branch."
Mosgiel Taieri Community Board chairman Andrew Simms acknowledged banks had "a difficult path to tread" between commercial reality and serving the community, but he believed closing the Mosgiel branch would make life "very difficult" for a lot of people on the Taieri.
"Obviously, I’m very concerned if closure was to be the outcome, because we have a large and important elderly population in Mosgiel who are probably quite dependent on a physical branch being there with face-to-face service.
"We’ve got 22,000 residents on the Taieri now, and while I accept a lot of the younger population are able to use online banking, that’s not the case for all of us.
"We’ve potentially got older people in Mosgiel who will be disadvantaged if there’s not a physical branch there."
Taieri MP Ingrid Leary said while the proposed closure highlighted the changing way people banked, it also showed the lack of recognition in New Zealand’s regulatory system that banking also had significant social implications.
"We must accept that there is a small percentage of people who will never be able to use digital solutions. We can’t leave them behind.
"Seniors and vulnerable adults in particular, rely heavily on having access to over-the-counter banking services."
She said Mosgiel was a long distance from Dunedin for people who did not drive, and the closure could make banking too challenging for some of them.
Mr Simms said 20 years ago, every major bank in New Zealand had a branch in Mosgiel, but they had slowly dwindled away.
"I think it’s pretty disappointing and possibly somewhat short-sighted of the banks in some regard.
"I think there’s a risk that people will say, ‘I’ll go to a bank that still is represented with a physical branch’.
"And I think the other thing with the elderly, is that they are vulnerable to internet banking scams and things like that.
"I think it is a real issue."
Ms Leary said she was "heartened" to hear the bank would "explore" a community banking offering, to help continue to serve local customers’ needs.
"I would want to see that strengthened into a real commitment, given that Westpac is one of the major banks in New Zealand."
