Nunavik’s co-ops scale back on teller banking

Nunavimmiut can no longer open an account, cash a cheque or make a deposit through the Nunavik Financial Services Co-operatives, located in each of the region’s 14 co-ops. (FILE PHOTO)

As of May 1, customers of the Nunavik Financial Services Co-operative no longer have access to in-person banking services.

That’s since Quebec’s Desjardins credit union scaled back the services it has operated through Nunavik co-ops over the last eight years.

In 2007, Desjardin’s Caisse d’économie solidaire teamed up with the Fédération des co-opératives du Nouveau-Québec (FCNQ) to offer banking services at each at co-op counters in each community, as it does in small and remote communities across the province.

In five communities; Kuujjuaq, Puvirnituq, Inukjuak, Salluit and Kuujjuaraapik, Desjardins also employed financial advisors at their banking centres — positions that were eliminated April 30.

Now the co-operative’s estimated 4,300 customers in Nunavik are almost entirely limited to online banking.

Although banking customers in Nunavik can still make cash withdrawals at local co-ops, they can no longer deposit cash or cheques nor can new customers open an account.

“It’s sort of a crisis,” said Chhoan Sokchiveneath, a senior manager of economic development at the FCNQ. “Because if people aren’t using direct deposit, they can’t deposit cheques.”

“I think it’s clear nowadays that people need to have a bank account.”

Without one, for example, Nunavimmiut cannot receive Quebec’s solidarity tax credit, Sokchiveneath said. And without local tellers, there is little change Nunavimmiut can get service or financial advice in Inuktitut.

Outside of the Nunavik Financial Services Co-operatives, Kuujjuaq is the only Nunavik community with access to in-person banking services, through its local CIBC branch.

But the decision to close teller banking at the co-operatives is not a new one; Desjardins announced the upcoming changes more than a year ago, encouraging its Nunavik co-operatives to transition to online banking.

The Caisse d’économie solidaire says there were a number of reasons it decided to scale back on operations, including low usage of its services and the cost of its upkeep.

The co-operative banking service runs a deficit of about a half a million dollars a year, Sokchiveneath said, and the FCNQ has paid out more than $3 million to cover those losses.

In the face of scaled-down services, statistics show Nunavimmiut have adapted to online banking; co-op banking sees about 882,000 banking transactions every year, of which 72 per cent are done online.

Computers will continue to be available at local co-ops for banking customers to access their accounts, Sokchiveneath said.

Regardless, the FCNQ says banking is a growing need in the region one that is not being met.

The FCNQ’s goal is still to create a full-service banking institution run by and for Nunavik Inuit, but it will require support from the region’s leadership, Sokchiveneath said.

The FCNQ has been in discussion with organizations like the Kativik Regional Government and Makivik Corp. about how to move forward.

“Our dream is to have that autonomy, and the only ways to have it is through co-op banking,” he said. “The potential is there.”

For now, Nunavik Financial Services Co-operatives customers can call 1-800-CAISSES or go to desjardins.com for more information.

Customers can also call 1-877-647-1527 to order a Desjardins Access card.