The Bendigo Bank agencies at Beaconsfield and Whitemark remain in line for closure

Bendigo and Adelaide Bank announced its intentions to close the community banking agencies at Beaconsfield and Whitemark, leaving the residents reliant on Australia Post's Bank@Post service.

This allows customers to check their balances, deposit cheques and cash and withdraw cash, but more complex transactions like loan applications require a trip to the Launceston branch.

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There are currently 15 Bendigo Bank agencies across Australia, and the Beaconsfield and Whitemark agencies are the only two in Tasmania.

Kylie Clifford, operator of the Whitemark agency on Flinders Island, said there was a strong case to be made for keeping a banking outlet on the island.

"On Flinders Island, we're probably more into using cash than other places," she said.

"We really like that personal service and a lot of the a lot of what we do for our customers is more helping, rather than transactions which would be seen by the bank."

The Whitemark agency is the only banking provider on Flinders Island and Ms Clifford said although the Bank@Post service was useful, it was too limited to be a permanent solution.

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This echoed previous statements by Flinders Council mayor Rachael Summers, who said many of the island's businesses and community groups relied on cash for transactions and events like raffles.

Executives from the bank visited Beaconsfield on April 19 to meet with Ms Clifford, Cr Summers, Bass MHA Janie Finlay and other community members.

Ms Finlay said the discussions had been productive, however, she cast doubt over the review methodology.

"When Bendigo Bank made this decision, they made it for the 15 remaining agencies right across Australia and they didn't independently consider each individual agency," she said.

"What we know is that on Flinders Island, the agency has been serving the community for many, many years and is a stable and welcome part of that community where there hasn't been a downturn.

"Since they opened, the Beaconsfield agency has grown to almost double its original (size) ... Businesses and community members from George Town, from Bell Bay and from across the Tamar Valley are starting to transition to that service."

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Asked about the scope of the review carried out by Bendigo and Adelaide Bank, a spokesman declined to comment.

A previous investigation by the Regional Banking Taskforce, published in 2022, indicated about "80 per cent of regional Australians generally used internet banking or mobile apps to pay bills, while 5 per cent used a branch".

The report also recommends banks consider alternate options to closing the branch if it is the last in a town.

Ms Finlay said the Bendigo Bank executives had advised they would give a final verdict by the end of April, and while she was hopeful for a positive outcome, there were contingency plans in place.

"We know that there's currently a Senate inquiry and we have committed ... to making submissions to that," she said.

"We would also seek to call on the state government to act to intervene and support communities with the provision of local banking."

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Treasurer Michael Ferguson said, as banking is subject to federal regulation, the Tasmanian Government was unable to intervene directly, however, it was preparing a submission to the ongoing Senate inquiry into bank closures in regional Australia.

The Treasurer added he hoped an operator like Australia Post could step up to the plate with greater banking provisions and condemned the actions of all banks who were reducing their services.

"I'm very disappointed to see the continued withdrawal of banking services," Mr Ferguson said.

"Not just in this case from Beaconsfield and Whitemark by Bendigo Bank, but by all of the banks as they gradually have reduced services in regional areas.

"We all recognise that most of us have shifted a lot of our personal banking needs to online, but that never takes away from the fact that there is a continued and undiminished need for face-to-face services."

The Senate inquiry is due to report back in December 2023.

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