Alternative means of providing banking and like services in regional Australia

Recommendations

Chapter 1

Recommendation (1)
The Committee recommends that the Treasurer and the Minister for Financial Services and Regulation ensure that the Department of Social Security, in conjunction with the Commonwealth Services Delivery Agency, the Treasury and the finance sector, investigate and report on possible options for alternative payment instruments for government transfer payments as noted in the Government's response to the Recommendation 96 in the Wallis Report. (paragraph 1.26)

Chapter 2

Recommendation (2)
That the Minister for Regional Services, Territories and Local Government and the Minister for Financial Services and Regulation in consultation with State colleagues, undertake a collection of comprehensive data on the access communities have to financial services. (paragraph 2.30)

Recommendation (3)
The Committee recommends that the Code of Banking Practice be amended to require banks to give customers two months written notice before transferring accounts between branches without the permission of that customer. (paragraph 2.52)

Chapter 3

Recommendation (4)
The Committee recommends that Federal, State and Territory governments give high priority to concluding a Heads of Agreement covering transfer issues and to enacting the legislation necessary for the transfer of credit unions and other Financial Institutions Scheme bodies to the Commonwealth. (paragraph 3.24)

Recommendation (5)
The Committee recommends that the Australian Payments Clearing Association ensures that commercial practices governing property settlements do not continue favouring or mandating bank cheques. (paragraph 3.34)

Recommendation (6)
The Committee recommends that the Victorian Government amend its legislation relating to the use of credit unions by local governments to bring it in line with the other States and Territories. (paragraph 3.42)

Recommendation (7)
The Committee recommends that the Minister for Regional Services, Territories and Local Government ensures that the Rural Transaction Centres Program builds on State Government initiatives setting up government service centres to deliver financial services to regional areas. (paragraph 3.56)

Recommendation (8)
The Committee recommends that the Treasurer negotiates with the Minister for Communications to ensure Australia Post's giroPost services are extended to include business banking services. (paragraph 3.108)

Recommendation (9)
The Committee recommends that the Minister for Regional Services, Territories and Local Government and the Minister for Communications negotiate an agreement whereby funding from the Rural Transaction Centres Program be used to install giroPost or an EFTPOB style mechanism where communities are able to demonstrate that there is a need and demand for the services. (3. 126)

Recommendation (10)
The Committee recommends that the Minister for Financial Services and Regulation monitors the Guild Bank development with a view to facilitating such initiatives. (paragraph 3.165)

Recommendation (11)
The Committee recommends that the Minister for Regional Services, Territories and Local Government gives a high priority to determining the scope of the RTC program and the announcement of a timetable for implementation. (paragraph 3.183)

Chapter 4

Recommendation (12)
The Committee recommends that the Australian Bankers' Association open discussions with the Australian Local Government Association and other interested organisations about the feasibility and value to communities of placing ATMs in council offices and other such locations. (paragraph 4.11)

Recommendation (13)
The Committee recommends that the Minister for Communications in consultation with the Minister for Regional Services, Territories and Local Government undertakes to assist communities to utilise the Regional Telecommunications Infrastructure Fund to expand the number of Internet Service Providers in regional and remote Australia. (paragraph 4.59)

Recommendation (14)
The Committee recommends that the Regional Telecommunications Infrastructure Fund Board be urged to consider internet banking prospects when assessing funding for projects. (paragraph 4.79)

Recommendation (15)
The Committee recommends that the Minister for Community Services directs Centrelink to give priority to developing and implementing a trial in a small rural community of a smart card product which could be:

• reloaded over the telephone
• directly credited with government pensions
• used to purchase goods and /or services. (paragraph 4.100)

Chapter 5

Recommendation (16)
The Committee recommends that the Commonwealth government undertakes, as part of the Rural Transaction Centres Program, to develop a method to contract Australia Post to deliver cash to areas in which Australia Post has a presence but in which there is no other financial institution. (paragraph 5.14)

Recommendation (17) The Committee recommends that in the event of closing a branch, the bank concerned waives any fees or penalties incurred relating to the early repayment of loans or closing of accounts.(paragraph 5.39)

Recommendation (18) The Committee recommends that state governments provide exemptions for stamp duties on any mortgages in instances where customers are transferring loans to another bank as a direct result of a bank closing the branch at which the loan was made. (paragraph 5.40)

Recommendation (19)
The Committee recommends that the Australian Bankers' Association develops a minimum standard of service delivery as a guideline for banks in the event of closing regional and remote branches. (paragraph 5.48)

Recommendation (20)
The Committee recommends that the industry adopts a branch closure protocol which incorporates the following:

• Banks will give three months notice to customers and relevant community organisations such as Local Councils of their intention to close a branch.
• Banks will consult with local communities about trends in the delivery of banking services and, in particular, about developments that have the potential to affect the delivery of services in that region. Included in this will be a genuine desire to use community goodwill to improve the viability of the branch. In the event of a decision to close a branch, banks will consult with the community about preferred options for alternative services and on the training to be provided in using alternative channels.
• Banks will provide written notice of at least two months before changing the branch that manages an account.
• In the event of closing or downgrading a branch below agency status, banks will waive any fees or penalties incurred relating to early repayment of loans or closing of accounts.
• In the event of closing a branch, banks will be expected to leave behind some form of over-the-counter service that allows access to cash deposit and withdrawal facilities for personal and small business customers.
• In the event of closing a branch, banks will provide face to face education and training for customers and the community in alternative forms of banking.
• The first four items should be made mandatory and incorporated into the Code of Banking Practice. (paragraph 5.51)

Recommendation (21)
The Committee recommends that the Minister for Financial Services and Regulation monitors the practices of banks in the event of closing branches and reports back to the Committee within two years with respect to the:

• alternative services left in place
• period of notice given and method of giving notice
• degree of community consultation involved
• level of education and training provided for customers, and the
• imposition of any fees on customers who repay loans early or close accounts as a result of the closure of that branch.(paragraph 5.52)

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