Why Bank Safe Deposit Boxes Are Disappearing

In recent years, many Australian banks have made the decision to exit the bank safe deposit box business and instead focus on their core banking operations. This shift has been driven by a number of factors, including changing customer preferences and the rise of private vaulting businesses like Guardian Vaults.

The decision to exit the safe deposit box business is not a new one for Australian banks. In fact, many banks have been phasing out this service for several years, with the most recent announcement coming from National Australia Bank (NAB) in 2022. NAB decided to transfer management of its safe deposit box facility at 271 Collins Street in Melbourne to Guardian Vaults. Earlier in 2017, ANZ bank safe deposit box facility on Queen street in Melbourne closed it’s doors, moving the safe deposit boxes to Guardian Vaults William street facility.

Why are banks leaving the safe deposit box business?

One reason that banks are exiting this space is that customers are simply not using these services as much as they used to. With the rise of online banking and digital storage options, many people are choosing to keep their important documents and valuables in electronic form rather than in a physical safe. Additionally, some customers may prefer to use private vaulting businesses, which offer more personalized service, greater flexibility and a specialisation on security and technology to keep their belongings safe.

Another factor driving this shift is the increasing cost of maintaining and securing physical safe deposit boxes. Banks must invest in security measures such as cameras, alarms, and reinforced walls to protect the contents of their vaults. This can be expensive, and with fewer customers using the service, it may not be financially viable for banks to continue offering safe deposit boxes when they are not growing their storage client base.

Private Vaulting Businesses Thrive in Australia

While banks may be stepping back from the safe deposit box business, private vaulting businesses like Guardian Vaults are thriving. These businesses offer a range of services, including secure storage of valuable assets and also bullion trading. Guardian Vaults also offer additional features such as Saturday access, advanced biometric security measures, and the buying and selling of bullion via Guardian Gold Australia, the bullion trading arm of the business.

One advantage of private vaulting businesses is that they can offer a more personalized service than banks. Customers may feel more comfortable entrusting their valuables to a company that specializes in secure storage, rather than to a bank that offers this service as one of many. Private vaults can also offer greater flexibility in terms of storage options, allowing customers to rent a box for a short period of time or to upgrade to a larger box or bullion safe as their needs change.

Guardian Vaults facilities have a huge range of security measures in place such as: biometric access, reinforced walls and vault doors, 24/7 security monitoring with CCTV, seismic, infrared, motion detectors, panic buttons and hidden security features which utilise the latest technology available.

In conclusion, the trend towards Australian banks exiting the safe deposit box business is likely to continue, driven largely by changing customer preferences. Private vaulting businesses like Guardian Vaults are stepping in to fill the gap, offering a more personalized and flexible service to customers. As this trend continues, we can expect to see further expansion of Guardian Vaults facilities and client offering.