Scotiabank Old Harbour to close permanently

The island’s second largest commercial bank has also announced that will be closing its Black River branch in February 2021.

This the Canada-based company said is part of several changes to its branch network to better align its organizational structure with current revenues as well as the shift in customer preferences.

“Changes were made following a review of its branch and service delivery network, and include the closure of the Bank’s Black River and Old Harbour branches,” the company stated in a press release yesterday.

The operations Black River and Old Harbour will be consolidated into its Santa Cruz and May Pen branches respectively.

David Noel, president and CEO of Scotia Group Jamaica said the unions have been informed of the decision taken.

“We will be making several organisational changes including the difficult decision to close two of our branches. These changes are necessary for the long-term success of the organisation. We have begun the consultation process with The Bustamante Industrial Trade Union (BITU), which represents a number of impacted employees. In order to preserve employment, wherever possible, we will seek to find alternative roles for affected staff,” Noel said.

The Bank indicated that changes are in line with the significant shifts in customer behaviour over the past few years which have accelerated since the onset of the COVID-19 pandemic. Branch traffic in some locations has been reduced by as much as 50 percent as customers continue to utilise digital banking platforms.

As at September 2020, branch transactions represented less than six percent of total transactions while online and mobile transactions accounted for over 30 percent. Automated Bank Machine (ABM) and point-of-sale transactions account for the remaining 64 percent.

Among the many changes to be streamlined soon is the conversion of six additional branches into digital operating models by January 2021. These branches are Christiana, Falmouth, Portmore, Port Antonio, Port Maria and St. Ann’s Bay.

Explaining the move to add more digital branches, Noel added: “Our digital banking model has been working very well. Customers still have the option to use our ABMs for their cash needs and our branch staff have more capacity to assist customers needing more complex banking services. Digital Branches also have dedicated staff to assist interested customers to learn how to use our ABMs and digital banking channels. All branches already have WiFi and we have also begun the rollout of tablets to help facilitate customers.  This is increasingly important as we try to maintain a high level of service and manage branch traffic amidst the current physical distancing protocols.”

Reacting to the developments, the Old Harbour Chamber of Commerce said it intends to seek an urgent meeting with Scotia Group Jamaica as such a decision will have a ripple effect on the fastest growing residential township in the country.

“There are just so many questions that come to mind hearing of this decision being made by Scotiabank Jamaica. When we meet with them we as a chamber will be able to speak from a more informed position,” said Treacha Reid-McCalla, president, Old Harbour Chamber of Commerce.

Former president of the Old Harbour Chamber of Commerce Adrian Samuda is questioning the rationale behind the decision.

“The Member of Parliament and the (Old Harbour) Chamber of Commerce need to have dialogue with the head of Scotia Bank urgently. At least a digital branch is necessary,” Samuda, owner of Kaluga Kafe, wrote on his Facebook page.

“The total removal of a major bank such as BNS from Old Harbour will have major negative impact on businesses and lives.”

The businessman, who recently entered representational politics as the People’s National Party (PNP) councillor candidate for Old Harbour North Division, added: “This is one of the cases when proper representation is needed both by the MP and the chamber,”

The Bank said it would be contacting affected customers and stakeholders in the coming months to ensure the transition is as seamless as possible.