By Monday, July 22, 2019, most of Laurentian Bank’s tellers will be out of work, a phase out process that started back in 2016. I have no written extensively about Laurentian Bank (category), but I am watching it closely for my financial institution rankings (most recent post).
In an era where more and more virtual bank (i.e. no physical branch offices with tellers) have become more popular, this is a bold move by Laurentian Bank and I look forward to seeing what potential can come with this.
Laurentian Bank is essentially trying to compete against banks like MBNA, Tangerine and Simplii. The difference is that those two banks are owned by a major bank, so it has their backing. Even though they are the 7th largest bank in Canada, maybe they are setting themselves up for a buyout from one of the larger banks? Cutting costs is a good way to set this up.
The real question is whether they plan to use these cost savings to increase the value of all their products to make themselves much more competitive.
Another thought I had is that they operate primarily in the province of Quebec, but this gives them an opportunity to expand outside of Canada, as virtual banks can have more reach than tellers.
I feel bad for all those who lost their job, but I think the writing was on the wall for Laurentian Bank, they were not going to be able to compete with the top 6 banks in Canada, so they are better off switching their business model and increase profitability another way.
Personally, I like this move by Laurentian Bank as I am going in with an open mind. I really believe that they will make a push to expand their business across the country, which will increase the competition in the financial industry. I look forward to what they plan to offer.
What are your thoughts about Laurentian Bank’s move to close down branches? Please let us know in the comment section below!