Scotiabank closes branch in Grand Bank, latest in widening rural exodus

In a statement, Scotiabank spokesperson said they will close the branch in Bonavista in September of next year and will move their in-person meetings to the nearest branch in Clarenville. (Sam Nar/CBC - image credit)
In a statement, Scotiabank spokesperson said they will close the branch in Bonavista in September of next year and will move their in-person meetings to the nearest branch in Clarenville. (Sam Nar/CBC - image credit)
In a statement, Scotiabank spokesperson said they will close the branch in Bonavista in September of next year and will move their in-person meetings to the nearest branch in Clarenville.
In a statement, Scotiabank spokesperson said they will close the branch in Bonavista in September of next year and will move their in-person meetings to the nearest branch in Clarenville.

Scotiabank closed another branch in rural Newfoundland and Labrador. (Sam Nar/CBC)

After more than a hundred years in operation, the Scotiabank branch in Grand Bank permanently closed as of Thursday, a sign of the times as the banking giant continues to consolidate some of its rural branches across Newfoundland and Labrador.

Mayor Rex Matthews says that for the past year the town has tried every possible way to stop the move — or at least delay it. The town contacted government agencies, lawyers and tried to schedule a meeting with Scotiabank.

"Absolutely nothing," Matthews said. "[I'm] very disappointed and saddened and frustrated with the the decision of Scotiabank to close our branch."

Wednesday was a busy day at the branch, Matthews said, with residents and business owners showing up with questions about how they can manage their accounts. The nearest bank is 50 kilometres away in Marystown.

Grand Bank isn't the only rural town in Newfoundland and Labrador that has been reeling since the closure of their only bank.

In 2023, residents from various communities in Atlantic Canada told CBC News about Scotiabank's plans to close their local branches. Eight of these branches were in rural Newfoundland, including Grand Bank. Other affected communities were Twillingate, Lewisporte, Bonavista, Burgeo, Flowers Cove, Deer Lake, and Whitbourne.

In an email, Scotiabank spokesperson Daniela Da Silva said the bank is "continuing to evolve" how it serves customers.

"When we do consolidate a branch, we will look for ways to continue to provide services to our customers in the area," Da Silva wrote.

"In cases of branch consolidation, we create a unique and robust community engagement plan which includes in Branch Community Outreach Days, engaging seniors and meeting with customers one on one as needed."

Rex Matthews says a 25 per cut in Clearwater's arctic surf clam quota could mean cuts to jobs and hours at the plant in Grand Bank.
Rex Matthews says a 25 per cut in Clearwater's arctic surf clam quota could mean cuts to jobs and hours at the plant in Grand Bank.

Rex Matthews, mayor of Grand Bank, says the town tried everything it could to keep its Scotiabank branch open. The branch closed on Thursday. (Sherry Vivian/CBC)

According to a survey published by KPMG Canada in June 2024, which involved 2,053 Canadians, half of the participants said they visit their bank branch only once or twice a year, or not at all.

However, 90 per cent of respondents said it's important for banks to keep branches in rural areas and small towns. The survey also suggest that the primary reason participants visit a bank is to deposit or withdraw money. About 39 per cent of participants were over the age of 58.

LISTEN | Grand Bank's Mayor Rex Matthews speaks with On The Go about the only bank in town closing: 

Online option

Scotiabank offers online banking to all of its customers, but Matthews says that isn't a viable option for everyone in town and area.

"We have a lot of seniors in Grand Bank," he said. "We have a lot of people, you know, that deal directly with the bank. They're not into online banking. And for those people this is a very difficult challenge that lies ahead."

Similarly, the mayor of Flower's Cove — which also had its branch closed last week — says many residents want that personal interaction over a screen.

"They like the personal touch, they want to talk to someone," said Keith Billard, adding that residents of Flower's Cove have to drive over an hour to the nearest branch and that's a risky drive for many seniors during the winter time.

"The way I see it, this is another nail in the coffin for rural Newfoundland to have that bank move."

Matthews says the closure of the branch will impact the town's ability to attract new people.

"You're trying to keep rural Newfoundland going as much as you can," Matthews said. "But people want to know about health care, they want to know about your schools, they want to know about your banking as well."

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