EASTERN ONTARIO – Four new Desjardins funds in Ontario are closing their doors this November, marking an additional step in the restructuring of the cooperative group in the province. This phenomenon is not new: in 2019, 11 Ontario Desjardins funds merged to form a single entity. Historically anchored in rural and Franco-Ontarian communities, Desjardins has always stood out for its proximity to its customers. However, these successive closures illustrate a gradual withdrawal of the institution from the local financial landscape, even if seven branches remain present.
In certain Franco-Ontarian villages and in more remote communities, Desjardins would physically distance itself from its customers, especially those who depend on it. We are thinking in particular of the elderly or more vulnerable people.
The expert in ethics and governance at the University of Ottawa, Marc Tassé, believes that the withdrawal of Desjardins from certain communities could lead to a detachment of its members. “Just for communities where Internet access is limited and people are not always comfortable with digital technologies, the change will not be positive,” he thinks.
“Although Desjardins seeks to offer adequate services by focusing more and more on digital, in these regions, this transition will create a certain distance between the institution and its clients. »
With an aging Franco-Ontarian population in the East, the switch to digital can be destabilizing. Removing a branch, where for decades people have gone to see their advisor, can create a feeling of neglect. Beyond this perception, seniors are also more worried about fraud. “Many still prefer to go in person to ensure they are speaking to a reliable employee, which reassures them more than online transactions,” adds Mr. Tassé.
In interview with ONFRStéphan Plante, vice-president Ontario, member experience and individual market at Desjardins, believes that although the time has come for change, the institution is not moving away from its clientele.
The latter affirms that the institution did not wait to support its community in the face of the risks of fraud: “I can give you examples of our work in certain communities and villages. We organize live presentations in senior homes and training. We also organize sessions on estate planning and support for the elderly, as well as several essential subjects to guarantee their financial autonomy. »
The risk of a feeling of loss of belonging
Mr. Plante insists that community engagement remains unchanged. “I can assure you that our commitment will not weaken. We remain present and committed to all our communities in Eastern Ontario. »
Historically, Desjardins plays an essential role in supporting local projects, beyond banking services, but at the heart of Franco-Ontarian cultural events, such as the LOL-Mort de laughter competition in Cornwall or in community activities and in partnership with organizations such as the French Canadian Associations of Ontario (ACFO) and the Assembly of the Francophonie of Ontario (AFO).
“Over the years, we have demonstrated this commitment by financing various projects, such as the Saint-Isidore arena and the revitalization of the boards of the St-Albert ice rink. »
There is no doubt for Mr. Plante, although the physical presence of the financial group has evolved, Desjardins Ontario remains active in supporting communities and playing a socio-economic role.
But Mr. Tassé believes the opposite. For the finance expert, this situation risks creating a feeling of loss of belonging. “People could say that what made Desjardins strong was this proximity to the Franco-Ontarian community. »
According to the professor, if everything goes digital, some members could turn to other financial institutions. Customer loyalty could be undermined, and Desjardins could redouble its efforts to explain its choices and offer alternatives.
Although the technological shift is inevitable, a more gradual and inclusive approach would be essential, according to Mr. Tassé, to avoid this decision being perceived as purely mercantile.
For his part, Mr. Plante reaffirms: “We are not moving away from our customers. » Moreover, he believes that the message sent to the community demonstrates that in recent years, “the transactional habits and preferences of members have evolved. »
The entire industry would experience these changes. At Desjardins, 96% of transactions are done online, he maintains. “When we look at this transformation, we must evolve and support our members in a personalized way. »
Seven remaining service centers
The closure of several branches in Eastern Ontario is linked to traffic, insists Mr. Plante.
With good reason, the population could be worried about seeing other closures. Across the country, Desjardins Group has already begun to reduce its service offering and its ATMs.
So obviously, for the expert in ethics and governance, “the message that people are likely to perceive is that Desjardins seeks above all to optimize its operations. However, as an institution with social responsibility, it has a duty towards its communities. The challenge for Desjardins will be to show that these decisions are ethical. »
He adds: “Members might wonder whether this decision was taken with a cost-benefit analysis only, or with consideration of the social dimension. »
Mr. Tassé considers that the bank of tomorrow should balance the efficiency gains brought by digitalization with the real needs of all its customers. As such, Stéphan Plante considers that, despite the major trends in the banking industry, “it is crucial to maintain strategically located branches and it is vital that it is a positive experience. »
As to whether other branches in Ontario will be able to close, nothing is set in stone, clarifies Stéphan Plante: “We first focused our efforts on Eastern Ontario, but I am very confident with the seven centers of remaining services, which are strategically distributed across the region. »
As for other regions of the province, decisions related to transformation and optimization of services are not excluded.
