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.
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’ve decided to close the doors to its branch in Wawota in May and is a decision he didn’t make lightly.
“When I first started banking, people would come in and they would bank with a branch, they’d be anchored to that branch and we had a bunch of services that would support it,” Kaulbach explained. “Now, 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’s not the only important thing they rely on to do their banking; there’s all these other ways that they bank. We have customers that move all over the country and they don’t change their home bank anymore because they are connected to the Royal Bank.”
“Now I understand that’s 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’s becoming more than just branches. People aren’t coming into the bank as much as they used to and when they come in they come in for different reasons… they don’t come in on a regular basis.”
Kaulbach added, “What’s become clear to me in the last couple of years is that people aren’t coming in like they used to and they’re 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.”
“We 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’s 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.”
In Wawota, the branch, according to Kaulbach, has not been meeting its business plan for a number of years and although they’ve put effort into growing the business, it has declined due to peoples’ changing digital habits.
“When we adjust our branch network we’re doing so because we’re growing our business and putting more people in the field,” Kaulbach said, explaining that many employees now meet with clients outside of the bank and at their place of business.
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.
“I would strongly recommend that if you don’t know how to do that, that you should come even if you make other [banking] decisions because it’s 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’s happening with banking,” Kaulbach stated. “We 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.”
“I 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.”
“The decision has been made to close the branch, so it’s about how we can move forward. The decision isn’t open for debate. We’re a business and we have to make business decisions; and sometimes those decisions aren’t easy, but we have stuck in the community for a long time – 104 years – and in the past five years the business here has been tough for us. It predates the oil downturn… but we are still going to service the community, we just aren’t going to have a branch, and I know for some people that’s 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.”
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.
Voicing their opinions included Shannon Houff, the President of the Wawota Business Enhancement Group and owner of Front Porch Interiors: “What 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.”
“If 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’s 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 – including banks – do not realize is that it hurts each individual in this room.”
Houff added, making a strong statement, “You wonder why more rural and community minded FI’s, 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’t 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’s present in my community.”
With that statement, Houff then addressed the room of approximately 40 attendees, “I want to ask - who else in this room has either changed or is considering changing where they bank – to please stand up and show the RBC how this will affect them.”
The entire group in attendance stood in response.
Speaking to those with RBC, Houff finished by saying, “Just so you all know if you are from a rural community, we have quality service, we don’t have push button things happen.”
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.
A local resident, Jeff Howe, then took an opportunity to speak. He cited RBC’s ranking in Canadian Business, which included 7th in Canada for revenue and number one in Canada for profit, before saying, “You guys represent the most profitable company in our country, so let’s make that clear. I began by saying my knee jerk reaction to this was, ‘No big deal.’ I immediately understood that it was probably a business decision as you’ve said and that it’s 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’t 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 – as a national statistic – well that 20 percent, it isn’t the people like me, it’s people like my 95-year-old grandmother. It’s vulnerable people. It’s disabled people. It’s the elderly. It’s the 17-year-old high school student who isn’t supposed to be on the internet much. It’s 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’re as much a part of this business as everyone is…”
“When we talk about corporate responsibility these are the things that come to mind, there’s a responsibility as the largest corporation in Canada, the wealthiest corporation in Canada, there’s a responsibility to have boots on the ground when and where you can; there’s a responsibility to lead by example.”
Howe added, “And I know that you’ve probably given thought to this, I’m not saying you haven’t. 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’re not here to debate it… But I don’t think the town is there yet frankly and I beg you to reconsider and I suggest, sir, that when you’re 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.”
“Having RBC in these little towns lends an air of credibility to the town itself and it’s sad to say, it shouldn’t be like that, but it is.”
In response to Howe’s statements Haulbach replied, “I agree with almost everything you’re saying, except we’ve 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’t 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.”
The final concerns that came up that evening were voiced by community member Shirley Corkish: “A lot of us here in town belong to community groups; ok, I need to get a float… nickels, dimes, quarters, dollars. I’m 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’t 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?”
Haulbach responded, “We’re looking at a cash machine, I know it doesn’t give you coin, but I can also tell you that the trend right now with events is etransfer.”
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… are not venues where etransfers will be used. They need a cash float and to be able to make change.
Corkish then asked about the digital advice night to be held in February referencing Wawota as a “senior community,” consisting of a population that may not be online or even have computers, which Haulbach said is why they’re looking to help with the Digital Advice Night and potentially donating computers to help provide access to individuals in the community.
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’t be ascertained.
