聽 聽 聽 聽 聽 聽 聽 聽 After 104 years in the community of Wawota, the Royal Bank of Canada (RBC) has decided to close branch services in the town, a decision confirmed by Regional Vice President, Ed Kaulbach at a community information session held by RBC at the town hall in Wawota on Thursday, Jan. 12.
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 Good business in current economic times means being able to grow and thrive with the quickly changing world, this includes keeping up with technologies. According to Kaulbach, with the RBC this adaptability and ever evolving landscape of the digital age regarding business is why they鈥檝e decided to close the doors to its branch in Wawota in May and is a decision he didn鈥檛 make lightly.
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 鈥淲hen I first started banking, people would come in and they would bank with a branch, they鈥檇 be anchored to that branch and we had a bunch of services that would support it,鈥� Kaulbach explained. 鈥淣ow, what has happened, is the majority of our customers bank with Royal Bank and branches are one of those things that are important, but it鈥檚 not the only important thing they rely on to do their banking; there鈥檚 all these other ways that they bank. We have customers that move all over the country and they don鈥檛 change their home bank anymore because they are connected to the Royal Bank.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 鈥淣ow I understand that鈥檚 not everyone and people in this room have a great attachment to Wawota and with the team I have here, no wonder you do. I do appreciate that; but, banking is changing and it鈥檚 becoming more than just branches. People aren鈥檛 coming into the bank as much as they used to and when they come in they come in for different reasons鈥� they don鈥檛 come in on a regular basis.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 Kaulbach added, 鈥淲hat鈥檚 become clear to me in the last couple of years is that people aren鈥檛 coming in like they used to and they鈥檙e also banking outside of the community, and I respect their right to bank outside the community, but we also have to make changes because of that.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 鈥淲e are really a community-based bank and not a branch-based bank; I feel responsible for over 35 communities and not all of those communities have branches and that鈥檚 because people are connecting with us, and choose to connect with us, in different ways than they used to connect with us in the past.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 In Wawota, the branch, according to Kaulbach, has not been meeting its business plan for a number of years and although they鈥檝e put effort into growing the business, it has declined due to peoples鈥� changing digital habits.
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 鈥淲hen we adjust our branch network we鈥檙e doing so because we鈥檙e growing our business and putting more people in the field,鈥� Kaulbach said, explaining that many employees now meet with clients outside of the bank and at their place of business.
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 Although Kaulbach says the branch is closing he wants to see a continued relationship between RBC and Wawota. He acknowledged their want to continue having a presence in the community and offer alternative ways to move forward without branch services in Wawota. This includes a Digital Advice Night to be held on Wednesday, Feb. 8, at the Wawota Community Hall.
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 鈥淚 would strongly recommend that if you don鈥檛 know how to do that, that you should come even if you make other [banking] decisions because it鈥檚 important you learn to do those things because the decisions we are making are a result of the digital economy and not just a result of what鈥檚 happening with banking,鈥� Kaulbach stated. 鈥淲e want to give you five dollars to deposit into your account, so you can turn around and donate it to the playground to show how easy it is and demonstrate our commitment to the community.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 鈥淚 understand that losing any business is tough; I understand the change to the landscape; but, we still need to make responsible business decisions and we really do want to help people.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 鈥淭he decision has been made to close the branch, so it鈥檚 about how we can move forward. The decision isn鈥檛 open for debate. We鈥檙e a business and we have to make business decisions; and sometimes those decisions aren鈥檛 easy, but we have stuck in the community for a long time 鈥� 104 years 鈥� and in the past five years the business here has been tough for us. It predates the oil downturn鈥� but we are still going to service the community, we just aren鈥檛 going to have a branch, and I know for some people that鈥檚 not going to be enough and I apologize if you feel that way; but, we at the Royal Bank will try to do the things that we can and support your community.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 However, the many community members of Wawota and the surrounding area were irate with the decision to close down the branch as they feel the branch is an integral part to the community.
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 Voicing their opinions included Shannon Houff, the President of the Wawota Business Enhancement Group and owner of Front Porch Interiors: 鈥淲hat happens when one of us is at the Big Way grocery store in town and have some trouble with our debit card? We have to drive to the Moosomin branch. We get a new Visa or Mastercard in the mail and we need to put a new pin in; we get to drive to the Moosomin branch. Where do businesses go to get coins and cash, or your daughter that needs something for the garage sale we have in town? We have to drive to the Moosomin branch. We need to deposit cold, hard cash today? We need to make a trip to the Moosomin branch.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 鈥淚f you take these examples and consider that Moosomin is about 57.5 km, one-way, to Moosomin, so a round trip of 115 km, with a typical $0.52 a kilometre for mileage and wear and tear on your vehicle, each trip to Moosomin branch would cost us about $60. So, it鈥檚 not going to take much for most people in this room to spend about $1,000 a year, minimum. Not only is that a hard pill to swallow, when they leave the community they will likely do some other shopping at the grocery store, the green house, the hardware store, grab some gas in Moosomin; this really hurts the Wawota businesses, but what most people 鈥� including banks 鈥� do not realize is that it hurts each individual in this room.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 Houff added, making a strong statement, 鈥淵ou wonder why more rural and community minded FI鈥檚, for those of us not in the bank industry that means Financial Institutions, like FCC and Credit Unions are amongst your biggest competition? Do you want to know why? They care about our lifestyle. They choose to be part of our communities by having a physical face in our community. A physical presence in a our small towns. So, I stand here to tell you RBC, please don鈥檛 bother coming into my personal business to chat about your new services. As you have decided to remove services, I have decided to support my community by moving all of my investments to a bank that鈥檚 present in my community.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 With that statement, Houff then addressed the room of approximately 40 attendees, 鈥淚 want to ask - who else in this room has either changed or is considering changing where they bank 鈥� to please stand up and show the RBC how this will affect them.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 The entire group in attendance stood in response.
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 Speaking to those with RBC, Houff finished by saying, 鈥淛ust so you all know if you are from a rural community, we have quality service, we don鈥檛 have push button things happen.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 To this, Haulbach explained that they are looking at setting up a cash counter (ATM) and other options for the community, which although there will not be a branch, they will still provide services and support to the community. He also referenced the use of e-transfers which are becoming more popular.
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 A local resident, Jeff Howe, then took an opportunity to speak. He cited RBC鈥檚 ranking in Canadian Business, which included 7th in Canada for revenue and number one in Canada for profit, before saying, 鈥淵ou guys represent the most profitable company in our country, so let鈥檚 make that clear. I began by saying my knee jerk reaction to this was, 鈥楴o big deal.鈥� I immediately understood that it was probably a business decision as you鈥檝e said and that it鈥檚 not going to affect too many people; but, that was a selfish mind frame I was in because I was thinking about myself. And then, I started thinking about my 95-year-old grandmother. She doesn鈥檛 live in Wawota, but she likes to go to the branch where she does live and I see on your website that only 20 percent of people now like to use the branch 鈥� as a national statistic 鈥� well that 20 percent, it isn鈥檛 the people like me, it鈥檚 people like my 95-year-old grandmother. It鈥檚 vulnerable people. It鈥檚 disabled people. It鈥檚 the elderly. It鈥檚 the 17-year-old high school student who isn鈥檛 supposed to be on the internet much. It鈥檚 any number of people that value branch service. What about them? The 20 percent that gets marginalized when decisions like this are made should not have to take a back seat to the business decision making, they are as much a part of this business as I am; they鈥檙e as much a part of this business as everyone is鈥︹��
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 鈥淲hen we talk about corporate responsibility these are the things that come to mind, there鈥檚 a responsibility as the largest corporation in Canada, the wealthiest corporation in Canada, there鈥檚 a responsibility to have boots on the ground when and where you can; there鈥檚 a responsibility to lead by example.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 Howe added, 鈥淎nd I know that you鈥檝e probably given thought to this, I鈥檓 not saying you haven鈥檛. I was a little bit disconcerted when I came in tonight, I apologize for coming late, but I came in late and one of the first things I heard from you is the decision has already been made and we鈥檙e not here to debate it鈥� But I don鈥檛 think the town is there yet frankly and I beg you to reconsider and I suggest, sir, that when you鈥檙e looking at all of this that your obligation to the people of this area is to fight for the branches staying open when and where you can.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 鈥淗aving RBC in these little towns lends an air of credibility to the town itself and it鈥檚 sad to say, it shouldn鈥檛 be like that, but it is.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 In response to Howe鈥檚 statements Haulbach replied, 鈥淚 agree with almost everything you鈥檙e saying, except we鈥檝e come to different conclusions. We are proud of being corporate citizens. Our purpose is to help clients thrive and communities prosper, and we do that. It doesn鈥檛 mean a branch on every street corner anymore unfortunately. And we have decided purposefully as an organization that we are not going to go and close a whole bunch of branches; we are going to take a very measured approach when it comes to what do our customers need and where do they need a branch.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 The final concerns that came up that evening were voiced by community member Shirley Corkish: 鈥淎 lot of us here in town belong to community groups; ok, I need to get a float鈥� nickels, dimes, quarters, dollars. I鈥檓 not going to drive all the way to Moosomin to get a float, I need a branch. Then, ok, we have our event. I have the money, again, nickels, dimes, quarters, dollars and I can鈥檛 deposit it at the Royal Bank here, I have to drive to Moosomin again. So, I have to volunteer my time, my gas, why would I continue with you?鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 Haulbach responded, 鈥淲e鈥檙e looking at a cash machine, I know it doesn鈥檛 give you coin, but I can also tell you that the trend right now with events is etransfer.鈥�
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 Many in the crowd were unsatisfied with this answer as they felt it was a sign the rural community has been misunderstood and overlooked by those making decisions regarding their community. The town-wide garage sale, bake sales, the museum, etc鈥� are not venues where etransfers will be used. They need a cash float and to be able to make change.
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 Corkish then asked about the digital advice night to be held in February referencing Wawota as a 鈥渟enior community,鈥� consisting of a population that may not be online or even have computers, which Haulbach said is why they鈥檙e looking to help with the Digital Advice Night and potentially donating computers to help provide access to individuals in the community.
聽聽聽聽聽聽聽聽聽聽聽聽聽聽聽 At the end of the night, there was discontent: the branch will be closing in May as a business decision has been made, while many in the community were disappointed that a solution that could better fit their community couldn鈥檛 be ascertained.
