A remote Aboriginal community on Western Australia's Kimberley coast is proposing a first-of-its-kind banking hub to tackle financial exclusion across the Dampier Peninsula, arguing that residents are forced to travel 200 kilometres for basic banking services.

The proposal, led by Djarindjin Aboriginal Corporation (DAC), calls on Australia's four major banks to jointly fund a community-led banking service for remote communities, including Djarindjin, Lombadina, Beagle Bay and Ardyaloon, which have a combined population of around 2000 people.

DAC's Goolboo Jawal financial counselling service financial counsellor, Veronica Johnson, is advocating for the hub, having observed the financial damage caused by the community's lack of banking services.

"People are needing assistance with banking, everything from financial abuse to basic activating of cards," Ms Johnson told National Indigenous Times.

"Community members are struggling to put food on the table or fuel, and you can't have one without the other. If you can't activate your card, you can't get your money."

Ms Johnson said she spends much of her time assisting residents with banking while financial exploitation persists in the area.

"People are struggling," she said. "There's a lot of financial abuse and a lot of complex banking matters that I need to attend to as a financial counsellor."

DAC CEO Nathan McIvor echoed Ms Johnson's sentiment, adding, "It's a solution for a long-term problem".

Mr McIvor also noted the hub would boost local employment and give "autonomy to the communities in dealing with banking for local community people".

After viewing the proposal, Australia's Securities and Investment Commission (ASIC) has encouraged "financial institutions to consider these long-standing barriers when providing services to their customers".

"Supporting stronger financial outcomes for First Nations consumers and communities is linked to ASIC's vision for a fair, strong and efficient financial system for all Australians, an ASIC spokesperson said.

"We consider access to banking services as a key foundation of economic empowerment and participation."

However, despite the proposal gaining support from government bodies, Ms Johnson says two of Australia's big four banks have given unclear or negative responses. Commonwealth Bank has formally denied the request, while Westpac and ANZ have not provided definitive answers.

She described the Commonwealth Bank's denial of the hub as a "kick in the guts".

"At this stage, the Commonwealth Bank has denied us," Ms Johnson said. "They said they're doing enough by travelling to Djarindjin three times a year, but it doesn't really cover it.

"It makes us feel that they're not listening to us, that they believe that a visit three times a year is enough, and it doesn't really cover all the emergencies that happen on a daily basis."

Commonwealth Bank responded to the upset caused by their rejection of the proposal, saying, "Our First Nations Reach program delivers quarterly visits to selected communities, typically for one to three business days".

"This provides face-to-face help with account access, identification issues, fraud enquiries and banking education," a Commonwealth Bank spokesperson said.

The bank also pointed to its Indigenous Customer Assistance line for support and its Bank@Post partnership with Australia Post.

Ms Johnson said Westpac and ANZ have not issued formal rejections but "stopped replying to emails," leaving the outcome uncertain.

"We're still waiting for Westpac and ANZ to give us a clear answer," Ms Johnson said. "We've been advocating for the last six months."

ANZ and Westpac provided background information to National Indigenous Times but did not comment.

In contrast, Ms Johnson praised NAB for its responsiveness and encouragement, noting that senior management had reached out to her directly regarding the proposal.

"NAB has been very supportive," she said. "Their bosses really want to see something happen."

Despite the setbacks, Ms Johnson isn't prepared to give up the fight for the community-led banking hub.

"It's about little communities like Djarindjin making things happen, and they don't want people to be successful in these independent initiatives, grassroots initiatives," she said.