Regional borrowers, particularly those seeking agricultural and commercial finance, are facing reduced access to in-person banking as branches close and relationship managers shift to centralised hubs.
“Many of our clients are finding it harder than ever to get personal, in-person service from banks,” said Nic Wilson (pictured), head of regional and agribusiness at Think Mortgage.
“Branches have either shut completely or cut back their hours, and many relationship managers who used to be based in regional areas are now covering huge territories from centralised hubs.”
Federal government data shows 36% of regional bank branches have closed since 2017, even as the major banks agreed to pause closures until 2027 following widespread criticism.
While retail banking has shifted online, Wilson said rural business and farm finance requires tailored support.
“In my experience, when a farmer or regional business owner wants to talk through their finance options, they prefer to do it in person,” he said.
Treasurer Jim Chalmers previously reinforced that view: “Face-to-face services remain essential, particularly for people and small businesses in regional areas, where digital alternatives may not always be accessible or meet their needs.”
Wilson said the lack of access goes beyond inconvenience.
“Regional borrowers are often forced to drive further and further just to speak with someone in person,” he said. “That travel time takes them away from running their businesses. It can have a real impact on productivity and profitability.”
According to APRA, total agricultural lending rose to $120.5 billion in 2022–23, but the distribution is uneven:
This disparity may reflect the difficulty smaller operators face accessing capital and personalised advice.
“Smaller farms and regional business owners often tell us they find it harder to access timely support and advice,” Wilson said. “They may not have large borrowings, but their need for clear, responsive guidance is just as important. A good broker can help ensure those needs don’t fall through the cracks.”
With regional branch closures increasing, many rural borrowers face limited access to traditional bank services. In response, brokers are playing a growing role in arranging complex lending, often via non-bank lenders that remain active in regional markets.
These non-bank and specialist agribusiness financiers can provide greater flexibility and faster turnaround times for borrowers who are underserved by the majors. This trend reinforces the value of mortgage and commercial finance advisers in rural markets.
Wilson said centralisation has changed how banks connect with regional towns.
“There was a time when bank managers and relationship managers were embedded in regional towns and easily accessible,” he said. “These days, it’s more common for them to cover large areas from central locations. In South Australia, for instance, a manager might be based in Adelaide but support clients across the Fleurieu and down to the South East.
“Many relationship managers do an excellent job despite the growing demands on their time. But the centralised model does make it harder for some clients to get face-to-face support when they need it most.”
Even clients who work with brokers can still be impacted when they need day-to-day banking support or to restructure existing facilities.
“Having a broker is just one part of the puzzle,” Wilson said. “There’s still a need for clients to be able to access local bank staff for ongoing matters, and that’s getting harder to do.”
Wilson said that without changes, rural customers risk being left behind.
“Regional borrowers face the same risks and decisions as those in the cities, but with fewer options and longer wait times,” he said. “Banks need to find ways to maintain meaningful access to their regional clients, not just digitally, but in person, where it counts.”
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