Bank of Melbourne sticks to branch plan
The brand will open its 70th branch since its launch in 2011, calling it a milestone on its way to its goal of 100 branches in five years.
The strategy remains at odds with the decline in retail banking and the rise of digital banking that has forced other banks, such as NAB, to reduce their branch footprint. It is also at odds with the bank's own customers.
According to the Bank of Melbourne, only 11 per cent of transactions occur inside its branches and call centres, with 89 per cent online, through mobile phones or ATMs.
But chief executive Scott Tanner said the bank would continue with the strategy as long as it got a return on the investment.
"We would always want a higher growth market, but we are still growing at the rate that we want to grow, so we're feeling very pleased on the return we're getting," he said.
"Each of our branches that we've built since we launched has produced good growth in balance and good growth in customers.
"We're going to keep doing it because we think that's what Victorians want."
Mr Tanner admitted the strategy was announced in a healthier time for retail banking, but said his outlook for the sector was positive.
"'I'm pretty positive in terms of what's happening. Victoria is travelling very well when you look at deposit growth," he said.
The bank has received about 70,000 new customers since launching in July 2011.
Mr Tanner said its goal of 100 branches by 2016 would still place its branch network well below the other big banks. He also said the bank had chosen better locations for its branches.
Its latest branch, in Traralgon, will open on April 15.
Frequently Asked Questions about this Article…
The Bank of Melbourne, part of Westpac, is pushing ahead with a branch expansion plan that reached its 70th branch since launching in July 2011. The bank has a stated goal of 100 branches within five years (targeted for 2016).
Despite the rise of online and mobile banking, the Bank of Melbourne says its branches are delivering growth in customer numbers and balances. CEO Scott Tanner has said the bank will continue expanding branch locations as long as they deliver a return on investment and because the bank believes Victorians want local branches.
The Bank of Melbourne's expansion contrasts with some competitors — for example NAB has been reducing its branch footprint. The Bank of Melbourne is growing its network while saying it will still remain smaller than other major banks' branch networks.
According to the bank, only about 11% of transactions occur inside branches and call centres; roughly 89% of transactions are carried out online, via mobile phones or ATMs, highlighting strong digital usage even as the bank expands branches.
The bank has gained about 70,000 new customers since its launch in July 2011, which the Bank of Melbourne cites in support of its branch growth strategy.
The bank's CEO has been clear the expansion will continue only while branches provide a return on investment. He noted that the branches built since launch have produced good growth in balances and customer numbers, supporting the decision to keep expanding.
The bank says it has chosen better locations for its branches and believes this site selection contributes to the healthy growth each new branch has delivered in customer accounts and balances.
The article reports the bank's latest branch will open in Traralgon on April 15, marking another step in its planned network expansion.
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