So another bank branch is closing. According to a report (ODT, 24.11.16), the University of Otago branch of the BNZ is to close because there is a lack of transactions. (Read transactions that incur a fee.) To make money, all financial institutions require all transactions to incur a fee, whether it be a direct charge or an indirect fee via a commission or a percentage rate charge.
As First Union retail and finance national organiser Tali Williams states, the closing of banks "is a troubling trend".
Westpac has recently closed two branches in Otago and the ANZ closed in Milton. Unfortunately, the trend is not new. Dunedin has had more than its fair share of bank branches closing as technology has decreased the need for customers to visit their bank. With the drift of retailing from the south of the city northwards, banks such as the main branches of the ANZ and BNZ closed some time ago in Princes St, followed by Westpac and Trustbank in that part of town. Also, the BNZ in the 1990s closed branches in Palmerston and Dunedin North. Those BNZ customers from the closed branches of Palmerston, Dunedin North and the main branch were directed to the University Branch of BNZ. (I am old-fashioned in calling them branches as I am aware the BNZ rebranded its branches as "stores" a couple of years back.) It would be interesting to know how many persons from those closed branches are still customers of the BNZ.
The logic of closing the BNZ university branch just based on the remote counting of transactions is short-sighted. The university branch is strategically located in the university campus and while students do not make many transactions, I personally have been visiting this branch once a week for some time to deposit cash from a charitable organisation to which I belong. At no time has the branch contained fewer than three customers and often as many as 10 are waiting. It would seem the closing of the branch has been on the radar for a while, as staff numbers appear to have been reducing and no new faces have appeared. In my experience, Dunedin people are loyal to service providers if they are receiving good service. Obviously the good work of the staff at the university branch in providing a sociable service in non-profitable (cashless) transactions has not been enough to sway the bean counters. The BNZ has no loyalty to its customers and has not consulted them regarding its closing of this branch.
In addition, the university branch has a car park that is well used (and often abused by non-customers) by the elderly and small business owners depositing daily/weekly takings. These customers will be well aggrieved, as parking around the BNZ branch down from the Octagon is difficult. In my opinion, the BNZ should have considered closing this branch instead of the university branch. The Octagon branch does not seem to have many customers in person except on cruise ship days, when it is travellers wanting to exchange foreign currency.
It is a sure bet many more bank branches will close because of the encouragement of online services and, hence, reduced human input. The most likely next candidate in Dunedin could be one of the ANZ branches on the corners of George and Hanover Sts.
- Peter Smith is a retired authorised financial adviser.
