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

Scotiabank has announced it plans to permanently close its only 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.

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 Scie and Roddickton-Bide Arm have also seen branch closures in recent years.

Scotiabank provides the option of online banking to residents. However, Norman said it's not a practical option for residents who don't have 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 three hours travelling?" Norman asked.

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

An RBC branch in Trinity is more than 50 kilometres. But for Scotiabank's customers, the nearest branch is in Clarenville, 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 has 160 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. So that'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 Furey on Tuesday called teh closures concerning. He said the province has asked Scotiabank for more clarity on the situation and is eager to hear a response.

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