Access Credit Union will be closing its Lundar branch in September and consolidating it with its Eriksdale branch, about 20 kilometres (12 miles) north of Lundar.
The credit union announced its decision on Jan. 15, citing low in-branch traffic and an increase in the use of online banking services.
In addition to its Lundar branch, Access will be closing four other rural branches: Birds Hill (consolidating with the Riverbend branch in Winnipeg), Gretna (consolidating with Altona), Lowe Farm (consolidating with Morris) and Miami (consolidating with Morden). These closures are scheduled for May 22.
Access said the closures are strategically aimed at “optimizing resources” in order to provide better service to its members.
“The decision to streamline the branch network was carefully considered. We understand the value of the in-branch experience and are committed to supporting members through this transition to ensure uninterrupted banking,” said Access president and chief executive officer Larry Davey in a Jan. 15 news release. “Banking habits are evolving, with more members using direct deposit and digital solutions like our mobile app, online, or by phone. We’ve seen a steady decline in in-branch transactions and a rise in digital adoption.”
Access is the largest credit union in Manitoba, according its news release. It has nearly $13.5 billion in assets, serves over 205,000 members and continues to put its members first.
Post-pandemic, Access underwent mergers with five other credit unions. In July 2022 it merged with Noventis and Sunova. In January 2023 it merged with Amaranth. And in July 2023 it merged with Carpathia and Casera.
After the mergers were completed, Access stopped providing iTM (interactive teller machines) service to nine rural locations including Lundar, Selkirk, Gimli, Moosehorn, Ashern, Fisher Branch and Riverton. The iTMs gave customers access to a live financial representative via a screen. Access said the decommissioning of iTMs was the result of low usage and “challenging cost-effectiveness,” according to a statement on its website.
The upcoming branch closure in Lundar does not sit well with the Rural Municipality of Coldwell’s council and its residents, who are reaching out to council with their concerns.
Reeve Virgil Johnson said they were “blindsided” by the announcement and that the RM will fight “tooth and nail” to keep the branch in Lundar, which is located in a section of the Lundar Arena on Main Street.
“We have a lot of elderly people here and they’re used to walking into the branch. They want to walk into a financial institution and see staff and talk to a teller. They don’t bank online like the younger generation,” said Johnson. “And they want to be able to use the Access ATM because third-party ATMs don’t work half the time and they charge high fees. And maybe there are some people who don’t have an account at the Lundar Access branch, but they can still use the ATM.”
CIBC abandoned Lundar a number of years ago. When Access closes its branch this fall, Lundar will have no financial institution.
“The blow we took years ago when CIBC closed was bad enough. A lot of people shifted over to the credit union,” said Johnson. “When it was Noventis, we were okay. Then they got merged with Access and the credit union got bigger. And now that they’re bigger, how much money do they need to make in order to service small communities? You look at any financial institution’s profits at the end of the year and it’s always staggering.”
In addition to inconveniencing seniors, people with mobility challenges, people without a vehicle or those who can’t afford the high cost of gasoline, the loss of Access will have other detrimental impacts on the Lundar community, including a possible decline in people shopping locally. If they need to drive to another community – or even Winnipeg – for banking services, they could also do their shopping there.
“What happens to a town when you lose your financial institution? Your residents will drive to another town to use a bank or another credit union and, naturally, they’ll do some shopping or go to a restaurant there,” said the Reeve. “So this will be a big blow to our community.”
Johnson said he thinks the upcoming closure has nothing to do with the cost to Access of operating the Lundar branch as Coldwell gave the credit union a “smoking deal” on rent.
“Access is saying it’s the biggest credit union in the province so that means you’ve got lots and lots of money pouring in. What is the Lundar branch costing you? Their overhead is next-to-nothing. It has nothing to do with the rent cost to explain why they pulled the pin.”
Credit unions were considered saviours after big banks started shutting down branches in rural communities over the past several decades. Credit unions stepped into the breach, offering tailor-made lending services that helped support small communities and spurred on socio-economic development. They also created local jobs and had local boards of directors.
By leaving Lundar, Johnson said Access could jeopardize its relationship with the community.
“They’re getting away from their roots, which is troublesome. You can almost see this as corporate greed. Farming is the backbone of the area and the rest of the country [region]. What are we going to do without them? It was farmers who brought those credit unions in,” he said. “Instead of attracting business, Access might lose business. People will be mad if you’re going to make them drive somewhere. They’re shutting the door in their faces; are people going to [stay] with them or are they going to go to another financial institution?”
Johnson said he doesn’t know if Access plans to leave behind an ATM in Lundar, which would somewhat mitigate the loss of the branch.
“One of our councillors is working on getting a meeting with Access,” said Johnson. “We’re not just going to roll over, that’s for sure.”
Access’ chief marketing officer Adam Monteith told the Express that in-branch user transactions have been trending downwards for many years, independent of mergers. And the mergers have been beneficial in that they’ve allowed for investment in technologies including online and mobile banking.
“The Lundar branch is somewhat unique, having opened only six years ago. Although we had hoped for more growth to ensure the branch’s financial viability, transaction levels in Lundar have not increased,” he said.
The “one staff member” in Lundar will be welcomed at another location close to home, he added.
The closure of any branch requires a significant amount of long-term analysis, he said when asked what in-branch numbers are required to keep the Lundar branch open. And given the reduced hours of Lundar’s branch and its proximity to Eriksdale, it would be “unlikely to see any significant change in branch activity that would result in a strategic change.”
As to how Access will address the needs of local seniors and people with mobility challenges, Monteith said members have “made it clear” that technology is the most significant investment that can be made to reduce accessibility barriers across all user age groups.
“While we can appreciate the convenience of a physical location for our seniors and members with mobility issues, nearly every transaction can be done today over the phone or through online and mobile apps,” he said. “We remain committed to investing in Lundar and the RM of Coldwell as a significant community supporter for projects that address those needs as well.”
The use of online financial services has its risks from hacking and other fraudulent activity, but Access’ protections are standard across the financial industry.
“The strongest anti-hacking protection is education: making sure that members recognize fraud and scams, avoid clicking on unknown links, do not provide personal information to unverified callers, and remain suspicious of unusual financial requests,” said Monteith. “The technological protections we offer are standard across the industry including complex password requirements, alerts, device management, and back-office unusual activity programs. We are also continuing to invest in this area recognizing the importance of keeping our members safe. Additionally, we provide educational materials, online education, and financial literacy sessions in communities to further enhance member awareness and security.”
As far as leaving an ATM behind in Lundar after the branch closes, Monteith said Access is evaluating usage patterns and is unable to commit to a standalone ATMs at this time.
When asked if reduced fees or better rates will be offered as a form of compensation for the closure of the Lundar branch, Monteith said Access has “highly competitive” rates and fees, and offers “significant community investment and leading-edge technology.”
