Sunday, February 16, 2025

Planned closure of Canso BMO triggers uproar

MLA, MODG officials demand answers, action

  • January 22 2025
  • By Alec Bruce, Local Journalism Initiative Reporter    

GUYSBOROUGH — Facing widespread community outrage over Bank of Montreal (BMO’s) decision to close its branch in Canso – leaving residents without a staffed location within 160 kilometres – Guysborough-Tracadie MLA Greg Morrow is vowing to bring the institution, which earned more than $7 billion in profits last year, before the Financial Consumer Agency of Canada.

In a letter sent to BMO Regional Vice-President Deanne Chaulk on Jan. 17, Morrow stated that the “unfortunate ... unacceptable... terrible decision to close the Bank of Montreal branch in Canso shows a complete lack of loyalty to residents [and leaves] too many unanswered questions.”

As a result, he wrote, “I will be asking the Commissioner of the Financial Consumer Agency of Canada (FCAC) to require a meeting in the community to answer some of these questions and to hear directly from the people BMO is impacting.”

He added: “[The bank says] ‘we’re proud to be part of the community.’ Unfortunately, actions speak louder than words, and the actions of BMO tell a completely different story.”

On Jan. 13, BMO announced that it is closing its Canso location, which employs three to four people and has continuously served the community, the surrounding area’s approximately 800 residents, as well as local businesses and non-profit organizations since at least the mid-1960s.

In a Jan. 13 letter to Morrow and Municipality of the District of Guysborough Warden Paul Long, Chaulk wrote the branch on 28 Main St. “will be consolidating with our New Glasgow branch. We have sent all of our customers a letter advising them of the consolidation and will also be holding an informal session in our branch on March 5, 2025, to meet with customers and discuss how we can assist them with their future banking needs.”

The letter continued: “The Canso branch will be closing it stores on Friday, July 25, 2025, beginning at 1:30 p.m. and our New Glasgow branch is ready to serve our branch customers ... We will automatically transfer all customer, bank, accounts, loans and investments to the New Glasgow branch as of Monday, July 28, 2025. This transfer includes lines of credit, mortgages, guaranteed investment certificates and registered plans. Customer account numbers and checks remain unchanged. Any direct deposit or pre-authorized payments will continue without interruption ... We are proud to be part of the community. We look forward to seeing you at our new branch. Please feel free to contact me if I can be of further assistance.”

The move, coinciding with the closure of the Port Hawkesbury branch and the transfer of its accounts to New Glasgow, prompted an emergency MODG council meeting on Jan. 15. Following the meeting, Long stated on behalf of council: “MODG unanimously passed a motion and correspondence has been sent to request that Ms. Chaulk and representatives of the Bank of Montreal meet with council at the earliest possible opportunity.

“The BMO branch in Canso is an integral part of the community and has provided services for decades to the residents of all communities across MODG. Losing that service affects every household in that end of our municipality, and is a shortsighted decision by the corporate decision-makers located in Montreal and Toronto.”

He added: “BMO rakes in billions of dollars in profits each year, and with that fact alone, our council believes that they have a corporate responsibility to the customers and staff in rural Canada, who helped build that corporation into what it is today. Expecting a resident to travel 160 kilometres to avail [themselves] of banking services is outrageous; and expecting staff at the branch to relocate to keep their jobs is untenable, and certainly we feel for every member of the staff at the Canso branch.”

Chaulk did not respond to The Journal’s request for comment before press time. But in an email on Jan. 17, BMO Financial Group spokesperson Jeff Roman stated: “We continuously assess our operations – including our branch network – to adapt to changing consumer preferences for service delivery. These decisions are carefully considered. We recognize that challenges can come with a transition like this for some customers and we are providing support, including delivering in-person seminars focused on our comprehensive digital banking platforms.”

  

Community feels abandoned

These reassurances notwithstanding, in interviews and emails last week, several community leaders in Canso told The Journal that the closure has left many residents feeling abandoned and deeply worried.

“The Canso Lions work with many groups in the community and understand the hardships that the closure will bring to the community especially for many seniors,” stated Lions Club member Ray White in a notice emailed to the newspaper. “The suggestion by BMO that area residents in eastern Nova Scotia could use the BMO in New Glasgow, a two-and-one-half hour drive, is not a workable alternative for many residents and businesses.”

Bill MacMillan, president of the Canso Historical Society (CHS) – who maintains bank accounts for CHS, the Canso and Area Development Association (CADA) and the Stan Rogers Folk Festival, said the suggestion “of a new branch being established for us and that this just business as usual is ... almost laugh[able].” In an email, he noted, “not only are they hobbling the residents but all the businesses with accounts, the many important organizations, churches and not-for-profit operational groups.

“[There’s] the Canso Co-op, Ingrid Nickerson; the Canso Pharmacy, Alex Willson; the Gas Station, Buns Kavanaugh; Bond and Harts store, Michelle Hart; The Downhome Store, Judy and John Cook; Troy [Greencorn] with the Stan Rogers Folk Festival. [There’s] the Regatta Group, the churches, the post office, AJ’s Pub, the fire department ... so many others as well who depend on these services and who will all face some dire consequences.”

CADA President Harold Roberts agreed in a phone interview. “We need a financial institution to serve the community. There are number of business accounts [and] a lot of them deal with payroll and other related operating expenses. And then look at some of the new [businesses] that may be coming in the future [and would need bank accounts] – Maritime Launch Services, the Black Point quarry [project].”

Almost as troubling, he said, is the way the closure has been handled. “There’s been no public consultation with the community to my knowledge. I think that’s a bit of a misstep by BMO corporate. And I say corporate because the decision was probably made at the higher corporate senior level.”

The fact the announcement came as a “total surprise” only raises the level of anxiety in the community, said MODG District 8 (Canso) Councillor Fin Armsworthy in a phone interview. “This is affecting the whole community ... seniors, fishermen, seniors, kids,” he noted. “We want them [BMO] to give us the reasons and let us know what the story is. Right now, we don’t know anything.”

  

Looking for answers

Long was adamant about quizzing BMO officials directly and as soon as possible. “If we don’t get any satisfaction out of them, maybe it’s [about] trying to see if there’s another institution – a credit union or whatever,” he said in a phone interview. “There used to be one there years and years ago. Maybe one would be interested in having a satellite office there a couple of days a week. Would they move in full-fledged? That would be ideal.”

That, however, may not be an option, at least for now. “We are very happy to support the community in the best way we can ... unfortunately, at the moment, we’re not in a position to entertain an additional branch in the Canso area,” Ken Shea, president and CEO of East Coast Credit Union – Nova Scotia’s largest credit union, which is based in Antigonish – stated in a phone message.

“East Coast Credit Union does have a branch in Port Hawkesbury ... We also have our virtual branch, which [can] open up accounts, loans, mortgages and investments through our 1-800 number as well as through virtual, online and video appointments. Certainly, we feel for the community and the changes that this is causing, and we are willing to do what we can to support from our existing network.”

For his part, Morrow will be looking for answers at the meeting he wants to bring before the FCAC.

“For example,” he asked in his letter to Chaulk, “what will happen to branch employees? It would seem at worst they’ll lose their jobs; at best, maybe they’ll be given the chance to work at the nearest branch, which would require an unrealistic daily commute or moving out of their home community entirely. Also, were any other options considered? Why not reduce the number of days the branch is open? It’s certainly not ideal, but it’s better than this decision ... Canso is a resilient community with resilient people – it’s too bad BMO doesn’t want to be a part of that going forward.”

  

BMO response

According to Roman, “For those who may need help getting started with digital banking, BMO offers video guides on BMO Digital Banking Demo to learn how to pay bills online, transfer money between accounts, deposit a cheque and send money to friends. BMO also offers mobile and telephone banking for customers via our BMO Virtual Connect platform and can assist in setting up direct debit and credit payments. Customers can stay updated on developments at our branch, where they can also learn more about how we will support them through this transition... We will ensure clients can transition smoothly.”

Said the Canso Historical Society’s MacMillan: “I have relatives and friends who worked at BMO down on Water Street in the very early 1950s. The current branch was opened in 1966, a full 60 years ago. Prior to the Bank of Montreal, the Peoples Bank occupied the original bank building down on Water Street from around the late 1800s.”

BMO Financial Group – which includes BMO and its subsidiaries – posted a net income of $7.33 billion on revenue of $32.04 billion for the fiscal year ending Oct. 31, 2024.