RODDICKTON, N.L. — A local business owner is worried the region's commerce will suffer since Scotiabank closed its doors in Roddickton-Bide Arm.
“It’s going to have a major impact on my business,” said Michelle Lidstone, who runs the Irving station and Robyn’s Donuts in Roddickton-Bide Arm.
The bank closed its branch Oct. 8, leaving customers devoid of a physical banking institution for the first time in over 30 years.
It served customers in Roddickton-Bide Arm, as well as from Conche, Englee, Croque, Grandois and Main Brook.
To do banking in person, customers must now travel 120 kilometres to St. Anthony or to Flower’s Cove, where the nearest Scotiabank branches are located.
It’s already impacting businesses.
“I have to travel at least twice a week to do deposits,” Lidstone said. “What does that say for me financially? That’s at least $100 a week in gas just to do deposits.”
There’s also a real possibility of losing customers.
Lidstone believes if people travel out of town to do banking, they’ll shop for things that may take sales away from the region’s businesses.
Older people and individuals without licenses, especially, are going to want to run all their errands in one trip, she maintains.
“They’re going to be picking up groceries, probably getting hospital appointments and then they’re going to be gassing up and probably using the pharmacy,” said Lidstone. “I’ve seen a little bit of difference already."
Roddickton-Bide Arm Mayor Sheila Fitzgerald agrees businesses and the elderly are the most impacted by the closure.
She says many seniors don’t trust internet banking and prefer to do it in person.
“Now, all of a sudden, going to the bank is a big event, because they’re going to have to plan transportation — we have seniors here who don’t drive or have the resources to drive,” she said.
Scotiabank also held the town’s only ATM, so the simple act of withdrawing cash has become complicated for everyone.
Some businesses are providing cash back, but Fitzgerald says there’s a limit on what they can dispense.
“Some stores are saying only a certain amount,” she said. “Which is understandable because they don’t have the access to a bank, so they’re not going to be able to keep their drawers full.”
Fitzgerald says the loss is devastating to the community and residents remain angered by Scotiabank’s decision to close the branch.
“People feel betrayed, this bank was here for 30-plus years and it had a history with the people,” she said.
Credit Union discussions
Fitzgerald has been open about her willingness to welcome another financial institution into town.
Council has had discussions with Eagle River Credit Union about moving in; however, the credit union requires a business case from the town before it opens a new branch.
Chelsea Gaye, a local pharmacist, has volunteered to draft the case.
She has found significant interest among residents in switching to a new financial institution.
She has surveyed about 350 residents and 15 businesses throughout the area — 98 per cent would be willing to leave Scotiabank.
Gaye says she’ll be providing the credit union information about rental spaces, about key partners in town, local economics and population demographics.
She is hoping to have a 15 to 20-page document prepared by the end of November.
