Submitted by Patrick Kemp
Many smaller communities are feeling the impact of recent bank branch closures and others have been served notice that their branch will close in 2024. By losing this core service, there is a direct impact on these communities. Business have to plan any cash or coin orders further in advance. Any physical deposits need to be driven 30-40 minutes to access a branch increasing staffing and transportation costs. Other businesses are forced to keep additional cash on hand which increases risk for loss or theft. Our seniors can feel a bit more isolated because they lose this service. For some seniors, a trip to the local bank to cash a cheque or pay a few bills isn’t just a service but a social activity for them. When a local bank branch closes, they miss this valued part of their routine.
Many smaller communities are feeling the impact of recent bank branch closures and others have been served notice that their branch will close in 2024. By losing this core service, there is a direct impact on these communities. Business have to plan any cash or coin orders further in advance. Any physical deposits need to be driven 30-40 minutes to access a branch increasing staffing and transportation costs. Other businesses are forced to keep additional cash on hand which increases risk for loss or theft. Our seniors can feel a bit more isolated because they lose this service. For some seniors, a trip to the local bank to cash a cheque or pay a few bills isn’t just a service but a social activity for them. When a local bank branch closes, they miss this valued part of their routine.
We understand that this is a business model that makes sense for larger financial institutions because they have promoted alternate delivery channels for years and they have been very successful. Individuals and businesses have the option to complete transactions on the phone, online or by mobile app. This is cost effective and efficient for those that have the ability to do transactions in these ways. This does not work for everyone and in rural communities, there seems to be a preferred tendency to conduct transactions in-person with the other delivery channels as options.
We have created a working group which is looking into an alternate business model for financial services. Our goal is to complete a business feasibility study to determine the viability of a new credit union with a “rural community” focus. This way operation decisions can be made on a local level by community minded board members. The credit union model allows the flexibility to establish business policies around community service and support over profit. Now for any business, profit is important but having more flexibility to reinvest funds on a local level is strategically important for smaller communities.
We would invite you to join our facebook group and get real-time updates on this project as we move forward. The name of the group is “Help us form a rural NB credit union” and we are asking current group members to share it also. Let’s work together to bring a vital service back to rural NB!
We have created a working group which is looking into an alternate business model for financial services. Our goal is to complete a business feasibility study to determine the viability of a new credit union with a “rural community” focus. This way operation decisions can be made on a local level by community minded board members. The credit union model allows the flexibility to establish business policies around community service and support over profit. Now for any business, profit is important but having more flexibility to reinvest funds on a local level is strategically important for smaller communities.
We would invite you to join our facebook group and get real-time updates on this project as we move forward. The name of the group is “Help us form a rural NB credit union” and we are asking current group members to share it also. Let’s work together to bring a vital service back to rural NB!
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