The last branch standing

2 min read · September 5, 2025
New Power Labs

Banks make strategic decisions about where to locate their branches, a choice that quietly creates financial deserts for some of Canada’s overlooked communities.

Unlike other forms of essential services (electricity, utilities, water, postal services), banking services don’t follow a principle of equal access. Big bank branches are clustered in high-income, high-population areas, and disappear from rural areas where margins are thin, leaving behind gaps to be filled by smaller institutions (Bank of Canada, 2020).

In rural Canada, people continue to lose access to basic financial services like deposits or cash withdrawals. Indigenous communities living on reserve face even steeper barriers, with only 32% of band offices having a cash source within 1 km, and just 54% within 5 km (Bank of Canada, 2019). This lack of proximity limits access not only to basic banking but also to credit, investment, and advisory services that fuel broader economic participation.

While digital banking has transformed the sector and expanded access, physical branches still matter, especially for seniors, low-income communities, people with disabilities, and those without reliable access to the Internet (StatCan, 2020).

Further, bank branch closures and reduced presence are connected to greater payday lending activity, especially in urban low-income neighbourhoods and rural banking deserts (ACORN Canada, 2004). Payday lenders step in to fill the gap at extremely high cost to borrowers, reinforcing cycles of financial vulnerability.

Reimagining financial access means ensuring that services remain physically available and are designed to serve all in Canada. For underfunded communities, this is not just about convenience; it’s access to resources that shape their ability to engage and thrive in the economy.

Narinder
New Power Labs

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