ASB set to close another 23 branches as customers move online

Thursday, 5 November 2020

ASB is set to close 23 branches nationwide, with a further 13 branches permanently moving to reduced hours.

The branches will close in February.

The move will see closures across Auckland, Wellington and some other centres. Reduced hours mainly affect regional communities such as Dargaville, Masterton and Ashburton.

ASB’s executive general manager for retail banking, Craig Sims, said the pandemic had accelerated a customer behaviour trend that was already well under way.

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ASB is set to close 23 branches around the country, with a further 13 moving to reduced hours.

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ASB permanently closed nine other branches in August.

“We have made significant investments in our self-service channels in recent years to meet changing customer expectations but the pandemic quickened the pace of change, challenging us to rethink what customers expect from a bank,” Sims said.

More than 60,000 ASB customers used the bank’s digital and online banking services for the first time this year, he said.

Sims said there would be no job losses due to the closures.

Staff at the closed branches would move into online or telephone customer service, he said.

Once the closures were completed in March, ASB would have 86 branches nationwide.

First Retail Group managing director Chris Wilkinson said there was concern the closure of the ASB branches would open the floodgates for other banks, leaving some small shopping centres without a physical bank presence.

First Retail Group managing director Chris Wilkinson says bank branches are fundamental to community retail centres and ASB’s departure could have significant impact.

“This leaves a swath of people without bank representation,” he said.

“On the one hand, we understand that people are moving online but, on the flip side, we were seeing a bit of a retail renaissance in these suburban areas and banks are fundamental to these retail spaces.”

Other banks have also been culling branches. Westpac announced seven branch closures in May.

Stephanie Clare, chief executive of Age Concern, says banks are trialling ways to support older customers and those without access to the internet in the home.

Also in May, BNZ also started consulting on branch closures.

When banks exited areas, it was very hard to find businesses to go into the empty sites, Wilkinson said.

The large bank spaces usually ended up being filled by $2 shops, he said.

Age Concern chief executive Stephanie Clare said she had discussed with ASB the impact the closures would have on older communities.

“Banks want to help their customers, so ASB has set up systems to support their senior customers,” Clare said.

Having access to bank services was important for communities, she said.

“There are many barriers to online banking, including not understanding what online banking is and being able to navigate the online banking websites. The other is, of course, the huge digital divide. If you don’t have access to devices and the internet, that will be a barrier to managing your money.”

Banks are running a trial of shared hubs for areas without dedicated branches.

The ASB branches set to close by February are Paihia, Whangaparaoa, Devonport, Birkenhead, Browns Bay, Greenlane, Howick, Constellation Drive, St Heliers, Wyndham, Lincoln Rd, Dominion Rd, Manurewa, Blockhouse Bay, Cameron Rd, Morrinsville, Havelock North, Taradale, Terrace End, Kilbirnie, Johnsonville, Ferrymead and Queenstown.

Branches in Kaikohe, Dargaville, Mangere Bridge, Matamata, Te Awamutu, Masterton, Rangiora and Ashburton will move to three days a week.

The branches in Smales Farm, Cambridge, Hawera, Westport and Gore will be open Monday to Friday between 12.30pm and 4.30pm.