Westpac has closed 173 branches over the last 12 months as it looks to drive more business from mortgage brokers.
The JP Morgan Australian Mortgage Industry Report noted Westpac was rationalising its branch footprint and improving systems to support the group’s multi-brand strategy.
Over the last 12 months, Westpac have closed 173 branches (from 1,261 to 1,088) and have improved growth by increasing broker business from 47 per cent to 49 per cent.
“The broker channel has a big influence and we expect it to be a bigger influence going forward.”
“It’s not so much a cost question,” explained Martin North who is co-author of the report , “but more a customer-driven issue. Customers are voting with their feet and choosing to go to mortgage brokers for their mortgage needs, which the banks are now adapting their strategies to,” he said.
Westpac’s decision to reduce its retail footprint follows similar measures taken by ANZ which was reported back in March this year.
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