Rural Tasmanians are scared of being robbed, scammed and losing critical social connection as the major banks increasingly leave country towns, an inquiry has been told.
George Town Council general manager Shane Power said the north-east region needs essential services because it is the most disadvantaged in the state, with an ageing population and high proportions of people living with disabilities.
The community particularly relied on face-to-face banking to support its vulnerable population, who also have low levels of numeracy, literacy and digital skills, Mr Power told the Senate inquiry into rural bank closures.
"It becomes almost a social inclusion thing, it adds to that social outing in an ageing demographic," Mr Power told the committee sitting in Launceston on Tuesday.
"It extends beyond just the convenience of service.
"While we appreciate rationalising of operations makes great business sense, we believe that big businesses such as the big four banks also have a greater social responsibility."
The committee is examining the effects of more than 650 closures across country Australia since 2017, which have left many communities fearing for their futures.
The major banks maintain there has been a continued decline in foot traffic in all branches and a dramatic uptake of digital services, particularly since COVID-19 lockdowns.
Commonwealth Bank has committed to keeping its remaining regional branches open until 2026, including the last major bank in George Town.
But the branch only operates for three-and-a-half hours per day, which doesn't help the many residents who have to spend a day in Launceston for medical appointments, Mr Power said.
ANZ left the north-west town of Smithton in April, five months after the Commonwealth Bank closed its doors, forcing residents to travel an hour or more to Wynyard or Burnie.
Circular Head Council acting general manager Vanessa Adams said small business owners feared being robbed as they moved cash between towns, while older people were scared of online banking scams.
Ms Adams said the banks did not consult the community before they shut.
"There was simply notices put on the closed doors that we could go to Wynyard or Burnie, which was very unhelpful and very cold," she said.
"The decision-making appears to be solely commercially-based; we were left with a clear impression that the banks didn't view themselves as part of the community."
The chief executives of Westpac, the Commonwealth Bank, NAB and ANZ are due to appear before the inquiry when it sits at Parliament House in Canberra on Wednesday.
