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Australia's banking watchdog has publicly sanctioned Westpac over the bank's sudden branch closure in the isolated Northern Territory town of Tennant Creek.
The disadvantaged town, about a 10-hour drive south of Darwin, is a key service hub for more than 6,000 people in the remote Barkly region.
Many residents are Indigenous people who speak limited English and don't have bank cards, mobile phones or internet connection.
In September 2022, hundreds of Westpac customers in Tennant Creek and surrounding remote communities were alarmed to find their local branch had closed without notice.
While some customers adopted online banking or made the switch to ANZ, the sudden loss of face-to-face banking left many people unable to access their money.
Warumungu elder Norman Frank Jupurrurla said the impact of Westpac's branch closure was felt immediately.
"It was really hard for pensioners to get money ... and for people with no English and no school," he said.
After a lengthy investigation, the Banking Code Compliance Committee (BCCC) has found Westpac breached its obligations in a "serious and systemic manner" over its sudden departure from Tennant Creek.
"We have sanctioned Westpac by naming them and publishing details of their non-compliance on our website," the report said.
The watchdog found Westpac failed to provide customers with information about how to continue accessing its services, and did not provide enough support for affected customers following the branch closure.
"The breaches posed a high risk of harm to customers," BCCC's report, released Tuesday, said.
"Westpac's response was inadequate and slow, despite concerns being raised by the community and the BCCC."
In a statement, BCCC chair Ian Govey said "the obligations set out in the code are crucial for protecting customers when a bank branch closes".
"In this case, Westpac has fallen short of their promise to customers," he said.
"Their actions have had a significant and detrimental impact on many people within the Tennant Creek community."
Vindication for advocates, but banking challenges continue
Kelly Gulliver, manager of CatholicCare NT's financial wellbeing and housing support programs, was on the frontline of managing the fallout of Westpac's closure.
Within days, her staff in Tennant Creek became inundated by Westpac customers requiring help ordering new key cards, setting up internet banking and arranging transfers and withdrawals.
"It's somewhat vindicating that [Westpac] has been held accountable to the code, but it really doesn't take away from the impact to vulnerable customers at all," she said.
"We're still seeing people every day who need help with their banking and have accounts with Westpac."
Member for Barkly Steve Edgington said the BCCC's findings confirmed reports on the ground.
"There was no notification given. The bank was open one day and virtually closed the next," he said.
"Westpac should apologise for the way they've treated customers in Tennant Creek."
In a statement, Financial Counselling Australia chief executive Peter Gartlan said the BCCC's decision "sends a clear message to Westpac and other banks that there are clear procedures to follow when closing branches".
"People need proper notice, they need support and they need access to money," he said.
Westpac says 'safety and security threats' prompted sudden closure
In a statement, a Westpac spokesman said "ongoing safety and security threats in Tennant Creek meant we needed to close the branch outside the standard process in order to protect our people".
"These circumstances were specific to the Tennant Creek branch and included damage to our branch and ATM," the spokesman said.
Mr Frank said the branch often had smashed windows and a broken ATM.
The Westpac spokesman said the company conceded "more could've been done to fully support our customers during the closure", and it had since reviewed and strengthened branch closure protocols.
He said Westpac continued to provide banking services in Tennant Creek by offering an ATM, visits from its remote banking team and providing support via an Indigenous hotline.