The only bank in Bonavista is closing, leaving many residents at a loss - Action News
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The only bank in Bonavista is closing, leaving many residents at a loss

Scotiabank's Bonavista branch is shutting down after almost 100 years in the town. The decision has left many residents, including the mayor, dismayed at prospective travel times.

The branch will close in September of next year and move its in-person location to Clarenville

logo of scotiabank
A Scotiabank spokesperson says it will close its branch in Bonavista in September of next year and move in-person meetings to the nearest branch in Clarenville, more than 100 kilometres away. (Sam Nar/CBC)

Scotiabank has announced it plans to permanently close itsonly branch in Bonavista, N.L.,leaving residents and businesses with limited banking options in the region.

In a statement to CBC News, a Scotiabank spokesperson said it will relocate its in-person services to their branch in Clarenville on Sept. 19, 2024, due to "customer preferences changing, and more day-to-day banking being done online."

The news came as a shock to Mayor John Norman, who said learned about it Friday in an email.

"This has always been an incredibly busy branch with the Scotiabank Group for Newfoundland," Norman said. "You're often waiting in line for 20, 30, 45 minutes."

Norman says the email he received from Scotiabank, which operated in the town for almost 100 years, said the branch was closing to "better serve their customers."

"Never did we imagine that a region with thousands and thousands of Scotiabank customers would be told 'to better serve you, we're going to offer you no service.' It's utterly ludicrous," he said.

A man wearing a white t-shirt and blue flannel jacket smiles.
Mayor John Norman says the town needs a bank for senior residents and businesses that require in-person meetings. (Lindsay Bird/CBC)

Emails sent by Scotiabank to CBC News confirmed branches in Burgeo, Lewisporte, Twillingate, Deer Lake, Whitbourne, Flowers Cove and Grand Bank are also set to close.

Fogo Island, La Scieand Roddickton-Bide Arm have alsoseen branch closuresin recent years.

Scotiabank provides the option of online banking to residents.However, Norman said it's not a practical option for residents who don'thave access to computers, such as low-income seniors.

"The woman I spoke to yesterday, which would be a common story anywhere in Canada, is an 88-year-old who doesn't have an iPad, a phone, the Scotiabank app, or a computer. She goes to that bank at least a couple of times a month. Is he or she supposed to hop on a bus and spend threehours travelling?" Norman asked.

The nearest financial institution, aside from the Bonavista Scotiabank, is a credit union in Port Union, about 20 kilometres away.

An RBCbranch inTrinity is more than 50 kilometres.But for Scotiabank's customers, the nearest branch is inClarenville, more than 100 kilometres away.

Norman also highlighted the presence of the business community in the area and their need of in-person meetings at the bank. As the president and chairperson of the local chamber of commerce, he said the association currently has160 members, which represent only a small number of the businesses operating on the Bonavista Peninsula.

"Anyone in business knows that there are certain things, especially being a Scotiabank customer, that you simply must do in person, and that is a reality," he said. "I've spoken to a number of fairly large accounts, we're talking multi-, multimillion and 10-million-plus business accounts, yesterday alone. They're all pulling out of Scotiabank."

As for a different option altogether, Norman said the town has received inquiries from other financial institutions in recent years.

"I think other banks and financial institutions, including credit unions, will be very interested in picking up a lot of that business. Sothat's very unfortunate, but that's where we are, and it's also unfortunate for all of the employees of Scotiabank in Bonavista."

Newfoundland and Labrador Premier Andrew Fureyon Tuesday called teh closures concerning. He said the province hasaskedScotiabank for more clarity on the situationand is eager to hear a response.

Download ourfree CBC News appto sign up for push alerts for CBC Newfoundland and Labrador.Click here to visit our landing page.

With files from Carolyn Stokes and The St. John's Morning Show

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