Scotiabank cashing out for good on Grand Manan

Over the past few weeks there's been a run on the Grand Manan Scotiabank, according to the village's Economic Development Committee chair, Jayne Turner.

"I went to the ATM and it was dry on Saturday," said Turner.

The island's only bank is set to close permanently on  Weds., Aug. 24 in a decision Scotiabank announced in January as part of a "fulsome business review." Scotiabank also closed its historic branch in the village of Bath, N.B., population about 500, in July.

On Wednesday, Grand Manan residents will have from 10 a.m. to 11 a.m. to tie up any loose ends — before the branch closes its doors for good, ending over a century in business on the island.

Grand Mananers haven't taken the loss of their bank laying down. Since the decision was announced in January, there have been heated debates, protest art, town halls, and last-ditch attempts to get help from Ottawa. 

But the decision, Scotiabank has said, is final — and it's up to the village to find its own solutions.

No such thing as easy money 

Businesses on Grand Manan will be able to arrange cash pickups and deliveries via a contract with private security companies like Brink's and Garda.

Ahmet's Independent Grocer on the island, which recently courted controversy when it was awarded the contract to operate Grand Manan's only liquor outlet, is "what they call an anchor business," Turner said.

The grocery store will "take the lion's share of the cost" for the private security service, making it "much more feasible for the smaller businesses to join in."

"We were really pleased that it turned out that way. It's not ideal, but it seems to be the best situation."

The Independent also recently installed a PC Financial-affiliated ATM.

There are three non-affiliated ATMs on the island: two are in convenience stores, and a third at Post Office Pizza in North Head, which charge customers fees between $3 to $5 to withdraw cash.

The village is working on securing another ATM that is affiliated with a financial institution, but no details have been released yet.

Credit union, postal banking discussed

Many people, both on and off the island. have suggested either a credit union or postal banking — a model piloted in remote communities like High Prairie, Alta. and Membertou, Cape Breton —could be a way forward for Grand Manan.

Neither of those options seem likely to happen right now. The village contacted "all of the [credit unions] that are currently operating in New Brunswick and in the Maritimes," Turner said. The response was "similar to what the banks are saying: that they're not moving into rural areas."

As for starting its own credit union, that's "not something the village as an entity would be prepared to do — handling the funds of individual community members."

Villagers could start one, but it would "require 10 people to make a long term commitment. It's a big deal, but certainly anyone could do it."

"If they did, we would certainly look at providing space in the existing bank building for that," Turner said.

Ownership of the brick-and-mortar bank building at 1191 Rte 776 will be transferred to the village. The hope is that it will become s community hub, with office space for services like a dental hygienist or a chiropractor.

A village employee will work there to assist former Scotiabank clients who aren't able to use telephone or online banking.

"I'll call them a banking assistant for lack of a better term. They would help people with their banking, certain hours every week. People could come in and check out their balances or pay their bills with the assistance of this person, who would be a bonded employee of the village," Turner said.

The possibility of postal banking is still being considered.

"I don't think it's a definite 'no' yet. So that would be great, if it did go ahead," Turner said. "But we just don't know yet."

Brought people together

Turner says the bank closure has galvanized the already tight-knit community.

"I'm kind of glad people were optimistic because I don't think, you know, they would have fought as hard as they did. And that brings people together, which is always a good thing."

But there's no silver lining for many small business owners and seniors on the island, some of whom will soon be making the hour and a half ferry crossing from Grand Manan to Blacks Harbour. The St. George Scotiabank, which island residents are expected to use after Aug. 24, is another 18 km from there.

The bank was 'something tangible, something physical there that you can count on," Turner said, adding the village's hope is that the new community hub and banking assistant will provide some sense of financial security.

"The fact that we have a way for people to manage cash, and hopefully have some in-person banking — they won't feel like they've been cut adrift"