Rural areas in New Brunswick brace for the loss of banks

The small community of Nackawic has something nowhere else in the world has: the world's largest axe.

But it's soon to be lacking something that many other places in the world do have: a bank.

Scotiabank recently announced it will close its Nackawic branch, the only bank in the rural town 65 kilometres west of Fredericton.

Greg MacFarlane owns Ryan's Pharmacy, located in the same downtown plaza as the bank.

"The bank is next door to the pharmacy, so we're in there probably every day doing deposits and getting coin," MacFarlane said.

Scotiabank says it is moving the accounts of its Nackawic customers to a branch in Fredericton, about 65 kilometres away by car. (Sam Farley/CBC News)

He said his business will have to re-evaluate procedures, since Scotiabank has redirected all of its customers to a downtown Fredericton branch.

"It's going to cost us more money to run our business, because we're going to have to be travelling to the bank to talk to the bankers."

Tim Fox, mayor of Nackawic-Millville Rural Community, was notified over the phone by a bank representative that the branch was closing and the decision was final.

Nackawic-Millville Mayor Tim Fox says the bank told him about the closure in a phone call and said the decision was final. (Submitted by Tim Fox)

Fox said the bank didn't talk to the municipality about a closure before going ahead.

"Nothing but a telephone call and a sign on the door," Fox said.

Scotiabank, which closed two New Brunswick branches last year, plans to shut down at least 18 branches across the Atlantic region, according to a CBC News tally.

In an email to CBC News, Scotiabank said it is consolidating "a series of branches across various markets" in Canada because customer preferences are changing and more banking is done digitally.

When asked for a list of planned closures for New Brunswick, Scotiabank would not send a list but said the bank will continue to share details "directly with affected customers."

CBC News has verified that Scotiabank closures are also planned for McAdam, Shippagan and Petitcodiac.

Fox said his municipality is "right on the cusp" of growth, has recently made upgrades to its riverfront marina, and has plans for a development of 200-plus residential units.

"That's part of our shock, if Scotiabank had done a little bit of consultation, they may have factored that into their decision," he said.

A sign on the door of the bank alerting customers that Nackawic will lose its bank. (Sam Farley/CBC News)

MacFarlane, the pharmacy owner, isn't necessarily shocked by the bank's decision.

"I have an understanding of how banks work and where the decisions are made," he said.

"And the decisions aren't made in New Brunswick, they're made on Bay Street," MacFarlane said of the Toronto-based bank founded in Nova Scotia.

Peter Saunders, mayor of Three Rivers, the municipality that includes Petitcodiac, said he got a phone call last week telling him the local bank was closing and customers were being shifted to Moncton, about 40 kilometres away.

Mayor wants to fight decision

"I've got a lot of folks around who have gone to that bank for years," said Peter Saunders, mayor of Three Rivers, the municipality that includes Petitcodiac.

"A change for some folk is not good, they just don't do well."

He said the town will at least have a credit union in town, but he's still heard complaints about Scotiabank from constituents.

Peter Saunders, mayor of the municipality of Three Rivers, says losing the bank in Petitcodiac is just another fight for rural New Brunswick. (Alexandre Silberman/CBC)

He said the Scotiabank representative told him on the phone there is no way to fight the closure decision, but Saunders said he's going to try.

"It's a fight some days for rural New Brunswick, really, it is," he said.

"To keep us going, to keep us rural communities alive. It's a fight."

Back in Nackawic, Mayor Tim Fox is particularly concerned for seniors, who he said make up about a third of the municipality's population.

"For some with mobility challenges, this is going to make it very difficult for them to do their banking," Fox said.

Loss of Chipman bank hurt seniors

Percy Huntington, president of the New Brunswick Senior Citizens Federation, couldn't agree more.

For him, bank closures are personal.

Huntington lives outside Chipman, the Grand Lake community that lost it's Scotiabank in 2016.

Travelling to neighbouring Minto for the nearest bank is "a bit of a jaunt," he said. "And if you don't have a vehicle, you've got a problem."

Percy Huntington, president of the New Brunswick Senior Citizens Federation, says the 2016 closure of his local Scotiabank in Chipman has been a challenge for seniors. (CBC)

He added that many seniors without vehicles or driver's licences are often dependent on family and friends for rides.

As for the move toward digital banking?

"A lot of seniors do not have computers, so what are they going to do?" he said.

Huntington said seniors are often the targets of online scams around money and banking, so they can be hesitant to dive into mobile or online banking.

"An older person does not trust a lot of people," Huntington said with a laugh.

"You have so many people that are trying to screw the seniors."