NAB to shrink size of branches
Now, facing similar pressures to cut their expenses, banks have a slightly different plan. Instead of shrinking in number, branches are shrinking in size.
NAB became the latest lender to announce plans to cut the average size of its bank branches on Wednesday, as consumers embrace online banking. Chief executive Cameron Clyne said the move was part of a revamp of its technological systems to allow more "self service" by customers through online banking and smartphones. It will also place a greater emphasis on using its branches to sell financial services, rather than a "full service" offering.
"The mistake the industry has made in the past is assuming the migration to digital would in fact replace other channels," he said.
"They are complementary to those channels, but accordingly we are going to reduce our store footprint in metreage by 25 per cent, but not the number of outlets," Mr Clyne said.
Despite predictions bank branches would die off in the online age, figures show this has failed to occur.
Last year, banks opened up another 65 branches across the country, the largest expansion in three years, according to figures from the Australian Prudential Regulation Authority.
Last year Westpac also said it would lower the size of the typical bank branch by about 30 per cent as part of a revamp of its network.
Frequently Asked Questions about this Article…
NAB said it will reduce the average physical size of its branches as part of a technology revamp, cutting store metreage by about 25% while keeping the same number of outlets. The move is designed to support more self-service through online banking and smartphones and to shift branch activity toward selling financial services rather than providing a full-service branch offering.
NAB expects customers to use online banking and smartphones more for everyday transactions, so it plans smaller branch footprints to lower costs while keeping physical access. CEO Cameron Clyne said digital channels are complementary to branches, so NAB will reduce metreage but not the number of outlets to balance digital and in-person service.
The technology revamp aims to enable more self-service options online and via mobile. That means branches will focus more on selling financial services and complex advice rather than routine transactions, with smaller physical spaces designed around those priorities.
No. According to the announcement cited in the article, NAB intends to reduce the average size of branches (metreage) by about 25% but does not plan to reduce the number of branch outlets.
Yes. The article notes that Westpac has said it will lower the size of the typical branch by about 30% as part of a network revamp, indicating a broader industry trend toward smaller branch footprints.
No. Despite predictions, branches have not disappeared. The article cites Australian Prudential Regulation Authority figures showing banks opened another 65 branches last year—the largest expansion in three years—so the trend is toward smaller branches rather than fewer branches overall.
APRA data referenced in the article show banks added 65 branches last year, signalling that physical networks remain important. For investors, that underscores a shift in strategy: banks are investing in both digital channels and reconfigured, smaller branch footprints rather than simply eliminating branches.
Investors should look for details on branch footprint changes (metreage reductions), plans for technology upgrades that enable self-service, and any stated shifts in branch roles toward selling services. These factors indicate how banks are balancing cost management, customer behaviour, and their physical networks.
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