06/08/2025
People living and working in regional Australia are facing growing challenges in accessing finance, particularly for farming and business needs, as more local bank branches close and services become increasingly centralised. In response, mortgage brokers and non-bank lenders are stepping in to support these communities, offering vital alternatives where traditional banking is falling short.
Nic Wilson, who leads regional and agribusiness at Think Mortgage, said many clients are finding it more difficult to speak to a banking representative face-to-face. With reduced branch hours and closures across the country, the personal connection that many regional borrowers rely on has become harder to maintain. Where bank managers once worked within the communities they served, many are now based in city offices and cover vast rural areas.
Government figures show that more than one in three regional branches have closed since 2017. Although the major banks have agreed to pause additional closures until 2027, many regional customers are already feeling the effects.
Wilson explained that, unlike everyday personal banking, business and agricultural finance often require more complex conversations that are better handled in person. Many farmers and regional business owners still prefer sitting down with someone to discuss their financial needs in detail.
There is concern that the growing distance between clients and their banks is not just inconvenient, but also harmful to business operations. In many cases, people have to drive for hours just to meet with a banker, taking time away from managing their farms or businesses. This added pressure can lead to missed opportunities and lower productivity.
According to data from the Australian Prudential Regulation Authority, agricultural lending climbed to over $120 billion in 2022–23. However, this lending is not evenly spread. A small percentage of large farming operations hold a significant share of the debt, while nearly half of farms have little or no borrowing. This imbalance could indicate how smaller operators are struggling to access finance and personalised guidance.
Wilson said smaller farms and businesses often face greater barriers when trying to access tailored advice. Although their loan sizes may be smaller, their financial decisions are no less important. Brokers, he said, can play a crucial role in making sure these clients get the attention and support they need.
As the traditional banking footprint continues to shrink in the regions, more borrowers are turning to brokers and specialist lenders. These non-bank providers are proving especially helpful for clients with more complex lending needs or those who need quicker decisions and greater flexibility than what is available through the major banks.
Wilson also commented on how the relationship between banks and regional communities has changed. In the past, bankers were part of the fabric of local towns, always close by and available when needed. Now, with centralised systems, managers might be located in capital cities while covering large territories across the state.
While many bank staff still work hard to support their clients, Wilson said the centralised structure limits their ability to deliver timely, personal service. Even when borrowers have a broker, they still need access to bank staff for routine matters or to make changes to existing loans, and that’s getting more difficult.
He stressed that relying solely on digital services is not enough. Regional borrowers deserve the same level of support as their city counterparts. Without better access to personal banking services, these customers risk falling behind, not because they are any less capable, but because their options are more limited.
To maintain strong support in the regions, Wilson said banks need to look beyond online tools and ensure people can still connect with staff in person when it truly matters.
Brokers and non-bank lenders are becoming increasingly vital in bridging the gap. These professionals often live and work in the same areas as their clients, giving them a deeper understanding of local challenges and opportunities. Unlike major banks, non-bank lenders tend to offer more flexible lending criteria and faster processing times, which is especially valuable for farmers and small business owners navigating complex financial needs. Brokers are also well-positioned to shop around for the best options, helping regional borrowers secure competitive loan products and personalised support that might otherwise be out of reach. Their presence is playing a key role in keeping rural economies moving, even as the big banks pull away.
