The mayor of Marathon, Ontario, expressed concerns about the impending closure of the town’s sole remaining physical bank branch and its potential impact on the local community. Scotiabank recently announced the closure of its branches in Marathon and Red Lake next spring, citing a strategic decision to consolidate services to other branches in Kenora and Thunder Bay.
Mayor Rick Dumas of Marathon was notified of the closure by a town council member, highlighting worries about the transition from in-person to online banking for residents. Dumas criticized Scotiabank’s focus on shareholder profitability over customer needs, particularly in smaller communities like Marathon.
Dumas emphasized potential challenges for seniors and businesses in adapting to online banking exclusively. He highlighted concerns about how businesses would manage transactions without easy access to cash services, pointing out that larger stores might fill the void by providing banking services to smaller businesses needing change.
Scotiabank defended its decision based on changing client preferences towards digital banking, stating that impacted clients will be supported during the transition. The closure of physical bank branches in smaller communities like Marathon and Schreiber was also noted, with residents feeling the impact on access to financial services.
Professor Jerry Buckland from Canadian Mennonite University explained that physical bank branches are costly to operate, leading to the shift towards online banking. He pointed out that communities with lower-income residents relying on basic banking services might be more susceptible to branch closures. Buckland highlighted the challenges some individuals may face in transitioning to online banking, particularly those lacking access to technology or comfort with digital systems.
Moreover, Buckland raised concerns about online scams targeting vulnerable individuals and the potential risks of turning to external loan providers due to limited access to traditional banking services. He cautioned against the dangers of risky financial products offered online, especially by companies outside of regulatory jurisdictions.
