Quebec town fears bank closure will leave residents and businesses in the lurch

For the past 49 years Roger Caza has been coming to the BMO Bank of Montreal branch — several times a month — in Huntingdon, Que., about 80 kilometres southwest of Montreal in the Montérégie region.

But about two months ago, residents were informed that the bank will close its doors in April, stirring up frustrations and concern among some locals who feel they are being left behind.

"I'm pissed off," said Caza. "They don't care about the customer, they care only about money."

Uncomfortable with online banking and not wanting to make the 25-minute drive to Valleyfield, he says he will be taking his business elsewhere.

Isabelle Arnau owns a flower shop right across the street from the bank branch.

"I was in shock actually, because our personal banking is there, our commercial banking's there and the convenience is there too," she said.

Arnau says the closure will make it harder to run her business.

Huntingdon Mayor André Brunette says he was taken aback by the bank's decision to pull out of town while its population and economy are growing.

"I don't understand why BMO is closing down because the town is just flourishing at the moment," said Brunette.

According to the mayor, the closure will only make it more difficult for seniors to do their banking and probably force them to switch banks to do their banking in town. He says BMO will end up losing business to competitors and the closure will hurt seniors.

"A lot of our senior citizens don't have the capability to travel to Valleyfield," he said.

Brunette has questions he wants to raise with bank representatives, questions he hopes to have answered at a public meeting this evening at the town's Royal Canadian Legion.

But he suspects the reason for packing up is probably related to profits.

"I think it comes down to the dollar sign," said Brunette.

The town intends to make a complaint to the Financial Consumer Agency of Canada to try to keep the branch open.

CBC asked BMO why it decided to close up shop in Huntingdon, and the bank responded by saying it is working to implement a smooth transition for Huntingdon clients to the Salaberry-de-Valleyfield branch.

"We routinely evaluate all our operations, including our branches, to ensure we are well-equipped to cater to changing customer needs," it said in a statement.

'Natural evolution'

More branch closures may be a sign of things to come.

Moshe Lander, an economics professor at Concordia University, says the closure of local bank branches is to expected and part of a "natural evolution" away from increasingly expensive brick and mortar in an age of online banking, especially outside of urban areas.

"To maintain a building and then a staff and security and to offer the full range of services in person doesn't really make sense anymore," said Lander

"The places that are going to see them cut first are in rural areas in small towns."

Even if residents switch over to other banks remaining in town, they will eventually find themselves in the same position when those banks leave too, Lander says.

But he says one thing banks can do to help customers who are used to banking in person is to have representatives sit down with them and teach them how to do their banking online.

The town's mayor thinks such an initiative is worth considering. "Is that the new way to go? It could be," said Brunette. "It's interesting."