Many councils contacted by InDaily said they had not been consulted about BankSA’s proposal to transfer teller services to municipal offices.

BankSA chief executive Nick Reade said on ABC 891 on Wednesday over-the-counter services would be transferred to post offices and discussions were being held with councils to introduce telling services, called Bank Local, into municipal offices .

“In addition [to Australia Post] we’re partnering with local councils with a new service that we’re calling Bank Local, we’ve got a number of conversations going on right now and the first council that has in principle agreed to this is the Orroroo Council.”

While most councils said they had not been consulted on the new scheme, Orroroo had held early discussions with BankSA.

Orroroo chief executive officer Stephen Rufus said the council had signed a memorandum of understanding with BankSA but more research needed to be done before it was approved at the next council meeting on November 25.

“We’re still having to work through all those issues, the legalities, the insurances,” Rufus said.

If approved, Rufus said the telling services in the council offices would begin when the branch closed early next year.

He said the Orroroo community, which has a high aged population,  would feel the closure.

“There was quite a lot of angst in the community when BankSA reduced its hours but we didn’t think it would close so soon – yes it has cause a lot of angst.”

Robe Mayor Peter Riseley said the bank had not consulted council about the proposed absorption of the township’s face-to-face transaction services.

“That’s a discussion council will have to have,” he said.

Riseley said the loss of banking services and the potential loss of one of the town’s two ATMs, which need staff to replenish cash stocks, would be most felt during peak holiday seasons.

“It would be a difficult scenario for Robe with a 15,000 influx of tourists and one ATM,” he said.

“There have been cases in the past where the ATM or bank has run out of cash.”

BankSA announced on Tuesday evening the closure of branches in Booleroo Centre, Tintinara Coorong council, Gladstone, Orroroo, Meningie, Lameroo, Riverton, Streaky Bay, Burra, Eudunda, Penola, Wallaroo, Balaklava, Barmera, Mt Pleasant, Robe, Yorketown, Cleve, Mt Compass and Crystal Brook.

Some 30 part-time positions are expected to be lost in those communities when the branches close.

Rufus said Orroroo would seek clarification from BankSA whether existing staff would have to absorb banking duties or provisions would be made to employ new staff.

BankSA said the closures – to be rolled out between February and March next year – were in response to over-the-counter transactions falling to 5 per cent of customer business, with the bulk occurring outside of branches and electronically.

Over-the-counter transactions at the 20 branches had dropped to 3 per cent or less.

Southern Mallee acting chief executive officer Neville Gasmier said BankSA had not consulted council about taking on the Lameroo branch’s services.

“We haven’t got a proposal in front of us,” he said.

Gasmier said the impending closure of the branch and the loss of two positions would be “devastating” for the region.

“The commercial reality is a loss of jobs and services is just devastating for our community.

“It’s not about how many people [in Lameroo] will be affected, it’s about how the district will be affected.

“It will be quite a visible impact but also there’s a hidden multiplier affect.

“They [staff] may relocate and not put money into the [local] economy.”

Gasmier said large corporations were turning their backs on country communities and using city bottom lines to make decision that affected regional areas.

“Big business measure their successes on their earnings and financial profits,” he said.

“But they need have corporate responsibility, they need to show social responsibility to the communities…the big question for them is what will their customers think.”

Coorong District Council has two of the shire’s three branches, Meningie and Tintinarra, listed for closure from February next year.

Council director of corporate and community services Nat Traeger said they had not received a formal request from the bank to inherit over-the-counter services and the suggestion had been listed for discussion at next week’s council meeting.

“We would’t be looking at making that shift,” Traeger said.

Traeger said she was surprised the Meningie branch was listed for closure as business was expanding and tourism was rising.

“The town is growing,” she said.

The branch closures raised questions among councils about the continuation of community sponsorship, particularly for events and sporting clubs.

In response to a query from InDaily about the future of sponsorship within affected communities, BankSA stated: “Our support for South Australian communities will not change as a result of the announcement we’ve made.”

“BankSA is not exiting communities, rather we’re providing our face-to-face services in a different way,” the bank said.

“BankSA is still the bank for South Australians and, as such, our support for South Australian communities will remain unchanged.”