WA regions hurt by bank deal

Westpac's new banking partnership with Australia Post has been criticised as yet another blow to WA regional services.

Under the deal, announced quietly on Monday, Westpac customers are now able to make deposits and withdrawals at 3200 participating Australia Post outlets around the country.

However, the tie-up also does away with 147 "in-store" agencies which see small businesses including newsagencies, chemists and real estate firms providing basic banking services for Westpac in regional Australia.

The move affects 18 businesses in WA, including the Cunderdin Farmers Co-operative, which took on an agency when Westpac closed the Wheatbelt town's last bank branch 15 years ago.

Chief executive Jason Goldson said Westpac's withdrawal would have a significant impact on the community, as Australia Post was offering only limited services and the Co-op would lose the customers the agency drew.

"It's another service that's been taken away. We won't have a bank at all," Mr Goldson said.

While Westpac's decision was influenced by the reduced use of transactional banking in favour of digital and online services, Mr Goldson said it penalised Cunderdin's ageing population.

"We still have clients who still use passbooks; that's just the way it is," he said. "At the end of the day, you don't want to go to Australia Post to do your banking."

Westpac said the Australia Post partnership would enable WA customers to access services at an additional 329 outlets.