Senate bank inquiry hears from Hume Bank chief on Holbrook opening

Stephen Capello was giving evidence at a public hearing at Junee into the closure of bank branches in regional Australia.

He was asked by Labor senator Linda White his thoughts on comments from association chief executive Anna Bligh that having branches was like being in the 1990s and the world has changed.

"If you purely view a branch as a transaction house, when you're costing each transaction, then I think they're not, the ABA or the other banks, are not recognising the role of branches in small regional towns," Mr Capello said.

"It's much more than just a transaction, it's a place to get advice, it's a place to do complex transactions, it's a place to store your cash."

Mr Capello told of Hume Bank opening at Holbrook after that town's last branch, a NAB, closed earlier this year and said he would consider opening an outlet at Junee if the Commonwealth Bank followed through on a previous plan to shut in the Olympic Highway town.

He said Hume Bank began trading at Holbrook after being approached by Greater Hume Council and saw itself as providing customers with financial accessibility and adding societal value.

"Within Holbrook....we know that customers aren't going to come to us within the first few months, but we're seeing a gradual increase in switching across after say six months, because we've been able to demonstrate an authenticity and a commitment to the community," Mr Capello said.

The hearing was told 95 per cent of Hume's transactions are digital and five per cent cash.

The inquiry committee's chair and Nationals senator Matt Canavan asked Mr Capello how he would feel about an expansion of Australia Post financial services or a government bank.

The chief executive replied it would be an "interesting concept", saying he had seen it operate effectively overseas but it required a lot of thought.

"For example we employ 150 people in our local community, we're a full service bank so what would be the implications of having someone 20, 30 metres down the road?" Mr Capello said.

Submissions to the inquiry have also been made by Albury, Berrigan and Moira councils.

Albury chief executive Frank Zaknich stated closing ANZ, Bendigo Bank, Commonwealth and NAB branches in Lavington had resulted in "residents receiving lower/no standards of service or being required to travel" and they disproportionately hurt disabled, elderly and ethnic citizens.

He noted Albury-Wodonga was "lucky" to have Hume and WAW banks to "actively invest in people and our region".

The Senate inquiry is due to report its findings by December 1.

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