Conexus Credit Union is closing nine service branches in the province including those in Middle Lake, Drake, and Young. The announcement was made in a press release on June 3. 

The announced closure affects branches in Chamberlain, Cupar, Mossbank, Spy Hill and two branches in Regina in addition to the aforementioned regional locations. The closures will be effective at the end of the business day on Oct. 2, 2019. The press release references the concept that "Banking is no longer a place to go, but a thing we do." In it, the release details that members are accessing services in a much different manner than in the past. The switch from cash to digital services is driving the widespread change in the banking service industry.

While Conexus states that it remains committed to improving the financial well-being of its members and providing meaningful financial advice, this comes as little comfort to the people who perceive the loss of a critical service in their communities. The Mayor of Middle Lake, Ken Herman, found out about the impending closure on Thursday, May 30 with the expectation that an announcement would be made on Friday, May 31. As the sole financial institution in Middle Lake and a mainstay of the community for around 60 years, the Middle Lake Credit Union went through a previous corporate merger until its absorption by Conexus Credit Union.

Among Herman's concerns are the need to drive for personal financial support and the inability to access cash in the community. Herman says, "The distance to Humboldt, Cudworth, or Lake Lenore, they're all about the same. All our local businesses supported it. We'll have nothing here. I guess if you need a hundred dollars cash, I guess they figure you're going to drive to Humboldt." Only Humboldt provides a Conexus banking centre; the other communities house different banks or credit unions.

Another concern is for those businesses and agencies that are still cash intensive. Herman gives examples, "Even in our village office, we don't keep cash on hand. The school isn't allowed to keep cash on hand, so they're always up here depositing along with our local store, our hotel, our liquor vendor, and Bethany Pioneer Village. We all supported it; we were here when it started."

Conexus CEO Eric Dillion sees the situation in Middle Lake and other impacted communities as a sign of the times. Dillon explains, "Banking is certainly changing, and what we've found is that it's not an urban or rural issue. It's just that people are migrating to doing banking differently. We're finding, and not just specific to Young or Middle Lake, is that about 95 percent of their transactions are not being done in a branch. We appreciate that their behaviours are changing, and what we're trying to do is make sure that we evolve our service as a credit union to serve our members as their needs have changed."

The challenge becomes moving forward in the communities. Here Dillon differentiates the Credit Union from other banking institutions whose practice may be to simply lock their doors in a closure. He says that Conexus is committed to community consultation in each of the affected locations. For residents in Middle Lake, that means a community meeting on June 10th. Dillon speaks of that commitment, "What we do between now and October is we reach out to every single member who relies on those branches and sit down with them to find out how they do their banking. If that means we send out our financial advisors to go see them in the community, at the senior centres, or in places where they are less mobile, that's the conversation we want to have with members."

Dillon acknowledges the concerns of the churches, schools and other institutions that, by their nature, trade in cash. Even there, he advises there has been a shift in usage, "That is one one the remaining challenges, but even there, cash use is going down in communities. I've talked to some members of churches and they're doing things like automatic transfers to the churches' accounts. In these kinds of places, we're seeing the use of cash go down quite drastically. That said, that's that chat we are going to have with each one of those members."

The shift from brick and mortar to online shopping that has revolutionized the retail landscape has come increasingly to the world of finance. Conexus serves 20,000 of its members in communities that do not have a brick and mortar branch, and it remains confident in its ability to do so in Drake, Young, Middle Lake, and the other impacted communities.  That shift may not satisfy community residents who see those institutions as integral to sustaining the community. 

Ask Mayor Herman. "We're very disappointed. Credit unions were set up to help small towns, and it's just another nail in the coffin." Other residents believe that prior consultation with members could have set up a way to retain the branches, even with reduced hours. 

The communities will have an opportunity to voice their opinions at the meetings with Conexus executive. Middle Lake's meeting on June 10th will take place in the Middle Lake Communiplex. Drake Community Centre will host a meeting on June 11th, and Young's will take place June 12th at the Town Hall. All meetings are set for 7:30 pm.