'Hope is failing' in Roddickton-Bide Arm as town's only bank announces closure
Nearest bank will soon be more than 100km away
The only bank in Roddickton-Bide Arm is closing up shop, and the town's mayor says the loss doesn't just affect residents' day-to-day financial services, it illustrates the bigger challenges facing towns in rural Newfoundland and Labrador.
Scotiabank has confirmed its branch in the small Northern Peninsula town will close Oct. 9, 2019, meaning the closest bank or ATM will be more than 110 kilometres away in Flower's Cove, or even further in St. Anthony.
"For us, it feels the same as an essential service closing. It's just as important," said Mayor Sheila Fitzgerald.
She said the town fears if people begin relying on St. Anthony for banking services, it will also mean people will choose that larger centre for groceries and medical services over those in their own backyard.
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"If that's the case, is this the first business to close, with a lot more yet to come?" she asked.
"Is this the first of many? Is this the slow erosion of rural Newfoundland?"
Impact on seniors
In a statement, Scotiabank said it reviewed its operations in Roddickton-Bide Arm, looking at the number of customers it served and whether its customers were banking using mobile or online transactions.
The bank said 80 per cent of its transactions across Canada now take place outside branches.
"After careful consideration of our operations in this community, we have made the difficult decision that we cannot continue to operate this branch," stated Scotiabank.
The reality is, people are leaving. Banks are closing. Hope is failing. Something needs to give, one way or another, real soon.- Sheila Fitzgerald
Fitzgerald said 46 per cent of Roddickton-Bide Arm's population is older than 55. She said many seniors don't use online or mobile banking, and are fearful of identity theft and other risks associated with the internet.
"The amount of stress that puts on our seniors is great, because there's that sense of uncertainty," she said.
"But it's also going to be hard on our businesses too, because businesses have to make regular deposits. So they're going to have to make sure that they make that time, to make that trip."
Fitzgerald said while the town is getting in touch with other banks and credit unions to see if they would come to Roddickton-Bide Arm, they haven't given up on changing Scotiabank's mind.
"We're not letting the bank get out of our community without a fight," she said.
Symptom of 'much larger problem'
Whether or not that fight is successful, Fitzgerald said the future looks bleak in her town.
"People are discouraged, people are upset. I mean the reality is, people are leaving. Banks are closing. Hope is failing. Something needs to give, one way or another, real soon," she told CBC Radio's Corner Brook Morning Show.
"The bank closure really is a symptom of a much, much larger problem."
That problem, Fitzgerald said, is the provincial government dragging its heels on announcing whether or not the town's wood pellet plant and sawmill will reopen.
The plant was built in 2011, and despite millions of dollars in funds from the province, has never produced any pellets. It is currently inactive, and Fitzgerald believes its future is a pawn in a political game.
"We need economic development in our community, and everyone's saying the same thing: 'I wonder, are they holding out for the next election?'" she said, adding even if news on the forestry sector isn't positive, it needs to be stated.
"Let us know either way, so we can plan for the future. The bank is first. What's going to come next?"
With files from The Corner Brook Morning Show