REGINA, Saskatchewan–Two Canadian credit union have announced separate plans to shutter some rural branches.
Conexus Credit Union is closing four rural branches in Saskatechewan, as well as another in downtown Regina.
Being closed are branches in Chaplin, Duck Lake, Smeaton and Willow Bunch.
Connexus said the decision was driven by an increasing number of members accessing services via mobile channels, rather than visiting in person.
Separately, Westoba Credit Union reported it is closing four of its rural branches in southern Manitoba, affecting upwards of 1,700 members in and around Belmont, Bruxelles, Onanole and Shilo. The four branches are closing on Dec. 4.
"The volume of business doesn't justify keeping the branches open and I guess just as importantly, we don't see that changing," CEO Jim Rediger. told CBC's Radio Noon."It's obviously a very difficult decision, but we also need to ensure that our organization continues to succeed in the future, and that certainly was a main driver behind our decision."
Rediger told the media outlete Westoba faces stiff competition in the financial services sector, "and that competition is also existing in a very low-interest-rate environment. From our perspective, we need to be able to reduce our costs and redirect funds towards improved technology and staff development in order to compete.”
Rediger said 12 staff members are affected by the branch closures, representing about 8.6 full-time equivalent positions. Some are being transferred; others are being laid off. Rediger said he expects the vast majority of affected Westoba members to stay with the credit union, as the branches that are closing have been supported by branches in nearby communities.
Members are also being urged to use mobile applications to access accounts.