Scotiabank’s message as Old Harbour branch closes permanently

May 14, 2021 will go down as the day Scotiabank Old Harbour closes its doors permanently. It’s a decision, though heavily criticized by members of the public, deemed a necessary strategic step by the bank’s owners, as the world moves into the digital age.

In fact Scotiabank was quick to put forward compelling data to support this move, pointing to more and more person conducting banking activities remotely and away from the traditional over-the-counter transactions.

This trend has been further exacerbated by the coronavirus pandemic besetting the world over.

The fact that in Old Harbour, both Scotiabank and the National Commercial Bank (NCB) literally exist beside each other also provided a clear picture as to which bank seemed more prepared for this crisis.

On any given day, long lines with grumbling customers were observed at the entrance of both financial institutions. But as the days and months progress into this seemingly unending lockdown, the queues got shorter and shorter. This was more the case for Scotiabank as it was bidding adieu, so to speak, to St Catherine South West. Special initiatives were put in place to train the not-so-inclined tech savvy customers. And just as they did last year when it announced the planned closures of branches in Old Harbour and Black River, the Canada-based headquartered bank reeled off yet again data to support the ‘science’ behind such approach.

Perhaps strategically and at a most opportune time one could argue, the island’s second largest commercial bank, revealed the latest statistics to further solidify its argument.

“Scotiabank reports that as at January 2021, 32% of total transactions were conducted at ATMs, while 64% were conducted using point of sale machines/digital banking and only 5% conducted in physical branches,” it noted.

This it contends is in keeping with international best practices as the world transition to digital banking whereby cash transactions will be a thing of the past.

For the umpteen time, Scotiabank reiterated its stance that it is not giving up on Old Harbour but rather making a shift in prioritizing “other banking functions,” focused on “financial advice and planning”.

Despite all the reassurance the bank continues to face volley of criticism with some persons even warning that its making a decision it would live to regret.

“We are people on the ground. We are telling you that the strategy… will not be feasible for businesses and it will not work out for your company,” businessman Adrian Samuda stated last November during a virtual stakeholders meeting with members of the Old Harbour business community and the bank’s top brass.

But again the bank was reassuring as ever, with Audrey Tugwell Henry who has now replaced David Noel as president and chief executive officer, responding: “We have a full plan as to how we will continue to serve the community, so I’m pretty confident that it will work.”

If one should go by how things unfolded on Friday at the Old Harbour branch, it could be said that customers have received the message loud and clear. They have adjusted with the times, as threats of customers moving their money to another bank appears to have dissipated.

But time will certainly tell if closing Old Harbour, the fastest growing residential community in Jamaica, is the correct decision.