Twelve years ago, a new Vancouver-based bank was launched; a bank without store-front branches and a forerunner of other on-line (internet and telephone banking only) financial services providers. Citizens Bank of Canada promised to be different from the established big-five banks in other ways; it would be governed by “ethical investment principles” and focus on putting the retail customer first. I have been a client since becoming eligible for the free seniors’ package at age 55. Most Canadian banks make one wait until age 60 for the same benefit. Every-time I did some banking with Citizens, I was left with a good feeling. The staff were so friendly, the investing objectives so noble, the re-investment in Canadian communities so reassuring and the interest-paid rates so consistently higher than the competition (even the orange bank with the guy with the accent).
It was sad news to learn this week, therefore, that Citizens is winding-down its deposit service and, essentially, getting out of the retail banking business. Apparently, great customer care, an excellent website for online banking, principled objectives and cool graphics weren’t enough. With only 30,000 clients, mostly in Ontario and BC, Citizens is pulling the plug. Or rather, the hugely successful Vancity Credit Union which owns the bank is pulling the plug. The loans and mortgages business has been acquired by TD Canada Trust. Customers received notification only that their business had been transferred effective the day of the announcement. So much for friendly. Those of us with deposit accounts and registered tax-shelter savings have until December to move our assets and close our accounts. I recognise that 30,000 is not enough clients to support a viable banking service over the long-term, but recent moves by Citizens were indicative of its being in the business for keeps. Only a few months ago, the bank opened a customer-care office (no real $$ exchanged hands, but you could do all the paperwork face to face with a human) in Toronto’s trendy St Lawrence Market neighbourhood and the bank was constantly surveying customers about what they expected and wanted of their bank. I will have the shiny purple stainless steel water bottle I received at the opening of the office (in exchange for a gift for the local food bank) as a souvenir. The charities that Citizens supported will not be so fortunate.
Now the quest for a new place to keep my modest savings must begin. Citizens is encouraging customers outside BC to switch to TD Canada Trust but no incentives have been proffered. TD has been tripping over itself to convince Toronto gays and lesbians that it is the most LGBT friendly financial institution; it supports most of the LGBT causes in a big way. It also insults by sending homophobic straight male models to events apparently expecting that gay men are so gullible they will open a credit card account in return for posing with a muscle bound steroid abuser. The green leather chair looks comfortable and the muddled seniors may be endearing, but I’m not ready to forgive the company that gave us Johnny Cash Machines and insults my intelligence on Pride Day.
I could consolidate my business with RBC Royal Bank; its LGBT friendly approach is to offer webpages of financial services information, tailored to gay and lesbian clients, buried on its site and advertised through selective print media only. RBC is the metrosexual bank with lots of LGBT friends who doesn’t want to publicize it, apparently, lest another customer, somewhere, take offence. Plus, most financial advisors will counsel against keeping too much of one’s business with a single bank. Certainly, its wise to separate deposit and credit services. Those customers who have had their savings accounts raided (entirely legally) because of a credit card snafu know the value of this advice. It’s why I had two banks in the first place.
Then there is the matter of return on the modest investment in my Tax-Free Savings Account and absence of user fees. Citizen’s was top-of-the-list and will be hard to match. And I doubt any of the other financial institutions will leave me with a warm cuddly feeling at the end of a transaction. Citizens - I’m going to miss you.
I hope Vancity will take good care of the employees who will be displaced and wish them the best. They were always good to me and deserve the same.
