As the cost of living rises and some big banks anger locals by closing rural branches, the Regional Australia Bank is trying to keep costs low for customers.
RAB CEO David Heine said the bank has "partially absorbed" the Reserve Bank of Australia's most recent interest rate rise for the third month in a row only passing on 0.20 per cent of the .25 per cent.
"The general cost of living is increasing, and people are finding it tough," Mr Heine said of the bank which is headquartered in Armidale with 36 branches statewide.
"Our members, and our regional communities, are our priority, and hopefully, we can play our part in helping them navigate through some challenging financial times."
Mark Smith owns Armidale-based CCTV business Tritech Security. He said he would consider switching banks if it meant he was able to save where he could spend in other areas.
"These days any cost savings we can generate in our business is always a benefit," Mr Smith said.
"It's just another tool in our arsenal to try and reduce costs for sure, especially with fuel costs. Our fuel costs are fairly high."
University of New England's Dr Shawn Leu said the RAB's decision to partially absorb the rate hike is most likely an internal business move made to gain a competitive edge in the market.
He said there are likely to be several more rate hikes by Australia's central RBA bank over the coming months to try and slow the economy and bring prices down.
"Therefore, I think the different commercial banks, including the Regional Australia Bank, will have to continue to pass on these future increases to their customers," Dr Leu said.
It comes after Westpac recently announced it would shut another 23 branches across Australia, totaling the closure of about 95 nationwide including a branch and ATM in Moree angering locals and others in the region.
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