Scotiabank to close five branches in Family Islands, PI

Scotiabank intends to close five branches in the Family Islands and Paradise Island and consolidate those branches’ services within New Providence locations, a press statement from the bank revealed, adding that the decision was brought about by changes in transaction volumes and customer behavior which have been even more pronounced since the onset of the COVID-19 pandemic.

While not speaking of layoffs, the company stated it would redeploy affected staff “where possible”.

Scotiabank noted in its statement that it intends to wind down the branch closings on Abaco, Andros, Long Island, Paradise Island and Exuma over four months, while working with the customers affected.

“The bank stated it would be contacting affected customers and stakeholders in the coming months to ensure the transition is as seamless as possible,” the statement pointed out.

“Customer assistance will be provided for digital banking as well as to address any general or service-related banking requests.”

Deputy Prime Minister and Minister of Finance Peter Turnquest said the government “regrets” Scotiabank’s decision, but contended that government’s move to develop technology to improve and advance financial inclusion.

“The government of The Bahamas regrets these decisions, particularly as it relates to employee redundancies, however we will work with these institutions and affected communities to develop alternative financial solutions,” said Turnquest.

“The move to expand the digital footprint by financial institutions has been a developing trend as institutions take advantage of technology and new ways of developing business to address evolving global trends. The COVID-19 experience has accelerated these developments globally and these developments have unfortunately caught up with us.

“I would remind the public that the Central Bank has launched its digital currency, Sand Dollar, and I would encourage residents and merchants to take advantage of this fintech solution as a viable alternative to dealing in physical cash, which would require a physical bank presence and all of the security and controls to manage that.”

Scotiabank revealed that after the closures are complete, nine branches across New Providence will remain and more than 70 automated banking machines, which the bank stated it plans to increase over the next several months.

Managing Director of Scotiabank Bahamas Roger Archer said in the statement that the changes are necessary for the long-term success of the bank.

“While we have made the difficult decision to consolidate a number of our retail operations, these changes are necessary for our long-term viability and success as a business.” Archer said.

“We will make every effort during this process to minimize customer impact and preserve the employment of affected staff through redeployment, where possible”.

The company said branch traffic in some of its locations has seen a 50 percent reduction, as customers shift to making digital transactions.

“Scotiabank continues to make significant investments in digital banking to provide customers convenient, robust alternate banking platforms such as Scotia Online and mobile banking, ABMs and TeleScotia,” the statement pointed out.

“These help customers to bank safely and securely, 24/7, significantly reducing the need to visit a branch.”

Turnquest added that the country must “double our efforts” to diversify the economy and produce new and differing types of work “taking advantage of the technology and fintech developments.”

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source https://thenassauguardian.com/scotiabank-to-close-five-branches-in-family-islands-pi/