A watchdog has found Westpac guilty of "serious and systemic" breaches of its industry obligations after it closed a branch in a remote Northern Territory town.
A Banking Code Compliance Committee investigation has concluded that Westpac failed to provide proper support to customers affected by the shutdown of the Tennant Creek branch in September 2022.
The move left almost 3400 customers without access to some of its banking services and led to local organisation CatholicCare NT seeing up to 30 customers a day seeking help.
"Westpac did not adequately consider the unique context of the Tennant Creek community and potential assistance its customers may need to transition to different ways of banking," the committee wrote in its findings.
"CatholicCare NT reported affected customers included those at risk of digital and financial exclusion."
The committee added that these failures left members of the community, including those experiencing vulnerability and not equipped to handle the transition without notice, at high risk of harm.
Westpac was consequently found to have breached the banking code of practice, an industry obligation enforceable by law, and has been sanctioned via a name and shame process by the committee.
"Based on the systemic and very serious nature of the breaches, it is appropriate to hold Westpac publicly accountable for its actions and the detriment caused," the committee said.
Westpac maintained the sudden closure "outside the standard process" was due to ongoing safety and security threats to staff members, adding it had deployed some customer assistance to the community after the decision.
"These circumstances were specific to the Tennant Creek branch and included damage to our branch and ATM," a spokesperson said.
"Customers were notified of the closure and alternative banking options via SMS ahead of closure, as well as posters in the branch.
"We recognise more could've been done to fully support our customers during the closure. As a result, we have reviewed and strengthened our branch closure protocols."
Westpac has relocated and maintained an ATM in Tennant Creek. It has also coordinated visits from its remote banking team to the town and supported customers with its Indigenous Contact Centre.
