Australia’s largest bank risks leaving some customers behind, a leading expert warns, after it moved to shut down all physical branches for its Bankwest brand across Western Australia.

The Commonwealth Bank-owned company revealed on Wednesday that it will transition to a “digital bank” in 2024, with 45 branches to close by October, 15 of which will be converted to the Commonwealth Brand in regional areas.

Bankwest executive general manager Jason Chan said it was “critical” the bank focused its investments on customers who want digital services and “rarely use branches”.

“I understand this will be difficult news for some of our customers,” Chan said on Wednesday.

But RMIT University Professor Julian Thomas said the move was “disappointing” as it comes amid a Senate inquiry deliberating on a swathe of bank branch closures across the country and after Commonwealth Bank paused any more regional bank closures until at least 2026.

He said the decision risks leaving many West Australians behind, particularly those in vulnerable positions where access to the internet is either difficult or quite expensive.

“It is a continuation of the trend we’ve been seeing with these really important services like banking moving to entirely or almost entirely digital operations,” Thomas explained.

“This does offer considerable benefits to some customers, many customers in fact if they can use that transition to improve their digital services.

“The problem is for those users who risk being left behind because they may not have the skills or confidence to use an online banking app.”

Thomas has been researching access to digital services across the country and has submitted analysis to the Senate inquiry into bank closures showing that many people either cannot reliably access digital services or would face high costs in trying to do so.

“There is a real patchwork of internet access across Western Australia,” Thomas said.

“People may not have ready access to the internet and they may be dealing with affordability challenges.”

Hundreds of bank branches have been closed across the nation in recent years as banks big and small look to cut costs as fewer customers use physical branches, even regionally.

But while most Australians no longer use physical banking, the minority that do rely on it, Thomas explained, and these people are also more likely to be in vulnerable positions.

Bankwest has attempted to salve any criticism against its move to digital banking by touting ongoing access to Commonwealth Bank branches and ATMS across Western Australia, as well as banking services offered by Australia Post through the Bank@Post program.

“Looking ahead, customers will have a clear and distinct choice between CBA’s personal and business banking offering and national branch network, and Bankwest’s simple and easy digital and broker offering, focused on homeowners’ needs,” Chan said on Wednesday.

“CBA has the largest branch footprint of any bank, and all regional CBA branches will be open until at least the end of 2026.”

Banks have continued to point to the Bank@Post program as a solution for Australians which no longer have access to a bank branch near their homes in regional areas.

But Thomas said it wasn’t “sustainable” for banks to continue piling demand for face-to-face banking services onto the taxpayer owned postie, pointing out that staff at those stores don’t have the expertise.

“Post offices aren’t designed as bank branches and don’t offer people the same kind of privacy or security,” he said.