Banking in Canada is pretty much a license to print money. Profits have never been higher and the big five banks enjoy a comfortable living. With the trend to computerized transactions, banks are finding that many of their customers have no need for a ‘bricks and mortar’ branch. Over the past few years, branches in Weston and Mount Dennis have been ‘consolidating’. This is banking language for closing and sending customers to the next nearest branch. As a result, Weston and Mount Dennis are quickly becoming a banking desert. At one time, we could choose from several banks but now, banks are closing their branches along Weston Road and Jane Street. While it’s true that demand has lessened considerably, many older residents need the comfort of talking to a teller and having their bank book updated regularly.
Like melting snow in a dog park after a long winter, what’s left behind after banks leave are payday loan companies that exploit the poor and vulnerable.
What does the future hold for banks and their branches? Probably more of the same resulting in less convenience for customers.
There is a possible solution to all of this consolidation and one that would be a ‘win’ for both banks and their clients. At least one storefront bank branch could remain open in each community. It shouldn’t matter which bank is represented as long as it services costumers from any of the other ‘big five’ banks without charging a fee. This is entirely possible in these days of Interac banking. Banks could consult with communities and decide which bank is represented in each locality. The banks could save a fortune with a clear conscience knowing that everyone; especially vulnerable seniors, had reasonable access to a bank.
The federal government is responsible for regulating our extremely profitable banks and their activities. Local MP Ahmed Hussen should take this on as a top priority before banks all leave town. If payday loan companies can have branches everywhere, it’s not too much to ask that one ‘big five’ branch stays open in each community. Competing brewers sell their wares through Brewers Retail. The banks need to set up something similar.