Affinity Credit Union announced February 9 that it will be closing its branch in Waldheim in June, 2023.
Affinity Credit Union Chief Executive Officer (CEO) Mark Lane said the difficult decision was made following a lengthy review.
“None of the three active employees at the Waldheim advice centre will lose employment as a direct result of this closure,” said Lane in an interview February 13. “But, in the end, the closure will impact all of them. There will be new geography involved, and ultimately it’s in the hands of the employees themselves whether they see continued employment with us.”
A public information meeting on the closure is tentatively slated to take place in Waldheim on Monday, March 20, although a location for the meeting has not yet been finalized.
“I have certainly never shied away from sharing our message or strategy,” said Lane. “I’ll be coming to meet with members directly in each community that is impacted. We have always hosted community meetings to hear directly from members, and to help with the transitions.”
Lane said Affinity Credit Union is closing a total of seven locations this year; two in March and five in June. Advice centres in Lake Lenore and Muenster are closing and being replaced by a new location in Humboldt, a community in which Affinity previously did not have a physical presence.
He noted that not all the closures are in rural communities. Some advice centres in Saskatoon and Regina were closed with new locations opened elsewhere in those cities to respond to changing demographics.
Affinity Credit Union closed 11 locations in 2017 and 12 in 2015. Since 2015, the number of brick and mortar Affinity Credit Union locations has been reduced from 80 to 50.
Lane noted that Affinity still has more branches in Saskatchewan than any other financial institution. He added that the goal is to have a regional advice centre within at least a half-hour’s drive for its 140,000 members across the province.
Lane said members in Waldheim will have access to advice centres in Rosthern, Hague and Martensville.
The reduction in branches is directly related to the shift away from in-person banking to digital transactions, said Lane.
“While these locations have historically been the centerpiece of a member’s relationship with their credit union, that reality has changed,” he said. “Members increasingly use other channels, particularly for transactional-based needs. Online and mobile banking are clearly preferred, and the credit union needs to adapt in terms of our investment in these channels.”
Lane said nine out of every ten transactions handled by the credit union today are done through digital channels.
“The little hand-held computer that we call a cell phone has allowed for convenience in both urban and rural markets for members and customers,” said Lane. “In the 1970s, ten out of ten transactions were done over the counter in a branch, now it’s one in ten. That’s why we are now calling our locations advice centres, because the value we provide to our members at those locations is the in-person advice.”
The Affinity CEO said employees will work with individuals and businesses in Waldheim over the next few months to identify service options and help them through these changes.
“All members are very important to us and our goal is to provide the very best experience for them – whether at another Affinity location, through mobile, online or telephone banking, through mobile specialists or our personalized Contact Centre,” added Lane.
Lane said telephone banking will continue to be an option at least till the end of the 2023 calendar year. Earlier communications from the credit union indicated the telephone banking service would be discontinued sometime in 2023, but the exact date was never stated.
“We’ll continue to offer telephone banking as long as it is practically feasible,” he said. “That will be at least through to the end of 2023.”
Lane said newer cell phones do not have distinct tones for each number on the dial pad like the old analog desk phones had. That makes it harder for the system to respond accurately to the numbers punched in by the caller.
“If you have an older land-line phone, keep using it for your phone banking,” he said.
Affinity is investing in new technologies and processes that meet the changing needs of members.
Lane conceded that the increased reliance on digital channels carries with it an increased risk of cyber-fraud. He said the credit union goes to considerable effort and expense to mitigate those risks.
“We want to ensure that we can offer our members price-competitive products, services and technology that’s relevant to their lifestyles,” said Lane.