![]() Earlier this year, the Canadian Union of Postal Workers launched a campaign, advocating for Canada Post to provide financial services in its locations. Canada Post offered banking services up until 1968. The concept of postal banking services has existed for decades. The beleaguered Crown Corporation’s losses increase fivefold in 2020 compared to the previous year, as the pandemic put pressure on operating costs and rising courier competition dampened the increase in parcel deliveries. “Internet and broadband issues are a big part of the problem,” said Moffatt-Toews, adding that even “Canada Post still has lots of manual offices that do no have connectivity, so they still use old cash registers and figuring everything out with pen and paper.”Ĭanada Post has been searching for ways to boost its balance sheet. In many cases, these communities are not connected with reliable broadband and internet services, making even digital banking or financial technology startups - or “fintechs” - a flawed solution. “In rural areas, the big banks like TD or RBC set up satellite locations in little towns - like setting up little huts to do simple transactions,” Moffatt-Toews said in an interview. Rural and remote towns and communities have in many cases been left with few banking options, according to Xan Moffatt-Toews, president of the Canadian Postmasters and Assistants Association’s Alberta, Northwest Territories and Nunavut branch. Canada’s lenders operated 5,820 branches in 2019, 483 fewer than in 2015. TD shut 82 branches in the United States in February to reallocate resources to digital banking alternatives, and all of Canada’s largest lenders temporarily closed certain branches during the pandemic due to restrictions.Įven before COVID-19 devastated global economies and incentivized customers to adopt digital banking tools, branch closures had accelerated. While the Big Six banks have been quiet on whether branches will be shuttered in Canada after the pandemic unwinds, closures have already happened south of the border. This advertisement has not loaded yet, but your article continues below.
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