Australian banks are seeking an exemption from competition laws to establish regional banking hubs where several banks share a single physical facility to preserve face-to-face services in regional areas suffering declining branch access.

If the exemption is granted, banks would negotiate the specifics and then individually decide whether to participate in the shared-hub model.

The Australian Banking Association has outlined a plan for up to 10 shared-hub facilities with cost-sharing and clear standards for when customers can access in-person services.

Regional moratoriums on branch closures remain in place, with the major banks and others pledging to limit closures through at least 2027 or 2030.

Australia would evaluate the plan for net public benefit and any non-substantial impact on competition, similar to the UK’s model of hubs that currently numbers above 230.

Cash usage has fallen sharply, with cash transactions dropping from the vast majority in 2010 to about half by 2025, and cash payments by value below 10%, underscoring a shift toward alternative banking access points.

Industry context shows banks are increasing technology spending to enhance online service delivery, with the big four banks reporting combined profits around $29.8 billion in the prior year.

Australia Post remains a key partner, offering banking services through collaborations with multiple institutions and signaling ongoing diversification of how customers access banking.