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Westpac to quit small business agency outlets for Australia Post

Small business newsagents and other retailers operating a Westpac banking agency within in their retail business heard in a phone hookup with Westpac yesterday that they are to lose their agency business.

Westpac has contracted with Australia Post to take over local Westpac agency operations.

This is a blow to these locally owned newsagencies and other small retail businesses. Losing this vital revenue is challenge enough, that they are losing it to a government agency is leading to anger. In several cases I have heard of the Westpac agency is moving to a government owned Post Office and not a LPO.

I am not affected in my newsagencies. If I was, I’d advise my customers that Westpac is putting profit ahead of small business and if it was being taken by a government owned Post Office I’d note that the federal government is is putting their profit ahead of good small business policy.

Newsagents in rural and regional situations are more affected than in the city as this is where Westpac agencies are more likely to be located.

In the phone hook-up, Westpac advised that retailers would have around a year an a half to adjust prior to losing an agency. One newsagent I heard from yesterday advised that in their case they have have been given just four months.

Westpac has advised of an ex-gratia payment to facilitate a make-good in the stores losing the agency. However, from what I understand, the amount mentioned is considerably less than what such make-good would reasonably cost in many situations.

Different newsagents affected by this move will have different reactions. I am writing about it today to give people a place to comment an to bring public attention to the Westpac / Australia Post deal.

Anyone affected and unhappy with the Westpac proposal could take the matter up with a local disputes tribunal list VCAT or QCAT. They could also seek mediation through their local Small Business Commissioner.

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  1. Steve

    Remember all those people with lots of time and no money who are always at the tellers window in front of you wanting to know were the money they are suppose to get tomorrow or forgot they spent yesterday is. Well they are going to be joining that long line at the Post Office. Can’t wait.

    3 likes

  2. Brett

    Well done Westpac – dumbest business decision you have made this year.

    1 likes

  3. Jonathan Wilson

    More to the point, if you are a newsagent or are otherwise unhappy with this move by Westpac (even if you dont actually have one of these agencies) and you do any business with Westpac, you could switch to another bank and let Westpac know why. Same with their subsidiaries like RAMS or St George.

    I have no accounts or other products with Westpac (or any of the big banks for that matter) but if I did I would certainly be switching.

    1 likes

  4. Paul

    No Steve it’s simply agency banking at the Post Office. They can take money out and put it in but the PO can’t advise them on where the money has gone or transfer money by BSB & AC as that requires a full service bank. It’s the same service that the Post Office already offers for every other bank except ANZ who currently doesn’t have an agreement with Aus Post.

    We’ve already seen a couple of people doing Westpac cash out transactions over the PO counter so it hasn’t taken long to kick in !!

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  5. Steve

    Paul, I think you’ll find they’ll still be there asking stupid questions. I though now have the choice of changing to NAB which is the only full service bank left in my town or going on a 120km round trip to the closest WBC branch because Aust Post won’t have the services a retail business needs, in particular you can’t get change for the tills from Aust Post and deposits and withdrawals are limited. Still I’m lucky I have a NAB to go to. I know of another town where the WBC agency was the only bank and the LPO/Newsagent is the size of a shoebox with a disinterested owner who’s trying to sell, they are screaming blue murder, but it won’t help them. This deal is done.

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  6. Mark Fletcher

    I’ve received several calls from newsagents about this issue today. Some are gutted, feeling blindsided. I hope by bringing attention to the issue those most affected can consider an action to protect their interests.

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  7. PeterS

    we have a LPO in our Newsagency and I also run a Facebook community page. This is what I have just posted.
    DISCLAIMER: As most know Doreen and I own and run the local LPO and we do not support this move by Westpac.
    Westpac, who made a yearly profit last year of around 7 Billion dollars have decided to celebrate by closing all in-store branches in Australia. This will affect mainly country towns. The in-store in Rylstone will be closed in November with all deposits and withdrawals then being handled by the local Licensed Post Office.
    Another Country service decimated and lost by the all mighty dollar. Another large corporation that has no interest in supporting Country towns. Our best wishes go out to Mary and Lori.

    5 likes

  8. Paul

    Steve, I’m also an LPO in conjunction with my newsagency and it’s pretty easy to explain to customers that it’s a simple deposit/withdrawal service. 😉

    1 likes

  9. Mark Fletcher

    Well done PeterS.

    0 likes

  10. Angelo Giuffre

    Did the announcement include St George agencies as well?

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  11. Peter

    Maybe this is the looming fate for most bank branches. Businesses with cash aside, most people would have no need to visit a branch these days. Once again the Internet as with newspapers, mags, lotto etc.. has ushered in new ways of doing banking. Cheques will probably disappear entirely soon and cash may be on a similar trajectory. Change is everywhere and will affect all industries.

    4 likes

  12. Carol

    The Post Office here had the in-store WBC
    agency and was devastated to hear it was to be closed. They must not have know about it going into Australia Post.

    0 likes

  13. Vaughan

    Hi All,
    I am one of the Newsagents that will be massively affected by this arrogant decision made by Westpac.
    We received a teleconference call from Westpac advising us that it would be closing down all In-Stores over the coming 18 months. (Gutless to say the least). We were also advised that we would receive a phone call from the Regional Manager for Westpac to advise of further details. (Another faceless person we have never met).
    During the phone call from the Regional Manager we were advised that Westpac would be closing the In-Store in 5 Months!! That’s right, 5 months.
    We would be given a cash payment to bring the area back up to a presentable retail footprint. The dollar amount falls far short of what the actual cost will be to renovate that space.
    In short, my small business will have to make large structural changes just to survive. The income that needs to be replaced is in excess of $50K. I am sure you can do the math.
    If i am to restructure my business it will mean the loss of possibly 5-6 part time and junior staff, maybe more. It’s heartbreaking.
    My business is in a town of 3500 people, so imagine the impact.
    I also know of businesses that will have to close their door as a result of Westpac’s greed.
    Can you imagine what it’s going to be like having to do your everyday banking in a business that already has major queue and customer service issues.
    Simply put…..Westpac, you are a bunch of arrogant arseholes and i hope your customers tell you where to jam it!

    12 likes

  14. Loretta

    I am soooo astounded but the bad decision Westpac has made to close the regional instores/ outlets. I live remote NSW, 3.5 hour drive from my nearest instore. The next closest is a 6 hour drive from home. Our instore ladies own their business, a clothing and shoe outlet for our regional sevice centre of Bourke, their customer service is impeccable. Their service is of a higher standard due to their business reputation in Bourke. I can say it is the exact opposite for a number of the staff in the districts post office. Terust, honesty, transparency and integrity are the core vales of WESTPAC, well were, and they definitely are not the core values of the post office employees I am speaking of, so where to now….
    Demanding change with letter writing and perhaps drumming up interest from other smaller banks, invite them into our regional service towns with open arms, sell out and BOUYCOT WESTPAC and take our business, loans, credit cards, savings to the new. Don’t forget Westpac, this is station country where communities stick together to support each other. I’d say that means you are no longer part of the community…..

    Services that cannot be done in a AUSPOST outlet – bank cheques, passbook updates and account services, account or loan enquiries, withdrawals over $1000 per day, ID verification.
    Other such questions – Business banking discrepancies with the drop box banking system, Change for businesses, change of personal details over the counter, most over the counter transactions and enquiries AND lack of trusted confidentiality in the POST OFFICE …. all ears to hear….. staff to point you in the direction of a service telephone if you need assistance….. when was the last time the CEO and Board walked into an instore and lived a day in the life of these hard working community entrusted businesses who until now have made it their business to ensure every customer that walks in is treated with the respect and trust they expect when they walk through the doors or a banking institution.

    Not to mention lost revenue and sales from the customer foot fall that the banking side brings into their business on a daily basis, more than the regional managers have cared to enquire ( if they did their job right and visit each store from time to time.)

    Will these businesses keep their business with WESTPAC now that Westpac had chosen to forget them??????

    Yes I am upset, Bourke is a Dying town, as are so many struggling, drought stricken country and remote towns. People are leaving in droves with lack of employment and opportunities, WESTPAC has just added to it to 147 towns with INSTORES.

    Where does the conversation stop…..

    I don’t see the same long list of positives here!!!!

    0 likes

  15. Loretta

    Lets inundate THAT BANK with complaint mail – to voice our issues week by week, send their Dept and CEO and Board of directors mad!!!!!!!!!!!!!!
    Do it the old fashioned way, takes more time to open the envelopes and read hand written/ typed mail than it does to press the delete button on emails. They may get a few paper cuts along the way…. Keep on posting mail until it gets on the morning news and the spotlight finally gets to our regional and remote struggling towns who need the support of the media in their plight.

    Please.

    1 likes

  16. Peter

    Loretta
    Some days I feel the same way you do about these changes taking place in our world. Where are the jobs that have sustained small towns going to come from in the future? They bring us self serve check outs, online banking, digital newspapers, large corporate farms, no video stores, fewer independent fuel suppliers and retailers, the list goes on. But these forces are unstoppable and eagerly embraced by the public. There is no turning back, this is the it’s always been and always will be. Anyway, climate change will have a bigger impact on the viability of many drought prone small communities.

    4 likes

  17. Steve

    Just out of curiosity, did anyone who either owns or works in one of these WBS agencies find that the last review by the Westpac mystery shopper before the closures were announced was extremely negative?
    I know of an agency which always had exemplary reviews which just prior to the announcement got an extremely negative review and a substantial cut in its commission as a result. The basis for the bad review was that the staff member wouldn’t give the mystery shopper advise on financial products, the fact that Westpac doesn’t allow staff in agencies to give advise on financial products is a fact Westpac has decided to ignore.
    I’m interested if this is a tactic Westpac is using against all agencies or just this one?

    0 likes

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