ASB Bank, the New Zealand-based banking arm of Commonwealth Bank of Australia (CBA), has decided to close nine branches located in the country’s main cities.
The move comes after the Covid-19 pandemic continues to push the bank customers to use digital banking services.
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The nine branches which will be permanently shuttered are located across Auckland, Waikato, Bay of Plenty, Canterbury and Otago city in New Zealand.
The latest branch closures leave the bank with 109 open branches across the country.
Apart from branch closures, ASB said that another 25 branches nationwide will reduce their working hours.
Starting from August, these branches will now permanently operate three days a week from 9 am to 4:30 pm.
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By GlobalDataASB executive general manager of retail banking Craig Sims said: “In the past five years, at ASB we have seen a 42% decline in-branch transactions, and now 85% of our personal customers prefer the convenience of our online and mobile services.
“Add to that, since lockdown in March around 13,500 customers have used our digital channels for the first time to do their banking and they’re continuing to do so.
“The branches not reopening have experienced a very low number of customers using the branch. Some, for example, serves only 900 customers a year so that’s only two to three a day.”
Apart from making changes to its branch network, ASB Bank is also recruiting more than 150 people to provide specialist guidance to its customers.
The support positions require new hires across its phone, online and branch network.
They will be responsible for providing special assistance ranging from Covid-19 related help to buying a home or planning for retirement.
The bank also partnered with Age Concern New Zealand to deliver ‘Better Banking’ workshops for older customers and for those using digital banking services for the first time.
