Investigating Spatial Patterns of 'Big Five' Bank Closures in Ontario, Canada: 2010 to 2019

Keywords: Bank Closures; Community; Spatial Patterns; Ontario; Canada
Session Type: Virtual Poster Abstract
Day: Monday
Session Start / End Time: 2/28/2022 11:20 AM (Eastern Time (US & Canada)) - 2/28/2022 12:40 PM (Eastern Time (US & Canada))
Room: Virtual 45

Abstract

Who is affected by bank closures? The loss of bricks-and-mortar financial institutions has received considerable attention in the Province of Ontario, Canada - as well as other advanced economic regions - over the past decade. Greater service automation (i.e. ATMs and ABMs) and the move to online banking have been key drivers of the downsizing of bank chains. Within this context, key questions remain on where banks are closing and who is being affected by these closures. To fill this research gap, this study examines the patterns of closures of the 'Big Five' Canadian banks (BMO, CIBC, RBC, ScotiaBank, and TD) between 2010 and 2019. To do so, analysis was done at the municipal level (n = 414) in the Province of Ontario, Canada - with nearly one-third of municipalities experiencing a closure during the study period. GIS and spatial analysis was used to visualize and investigate the locations and patterns of closures within the province, while logistic and spatial regression were used to identify the characteristics of the communities most effected by the closures. In doing so, the study finds that there are multiple types of communities experiencing closures - larger urban centres with higher population densities and greater technology adoption and higher online banking uptake, and smaller rural communities with aging populations. In particular, this latter group faces risk of financial exclusion through loss of local 'in-person' banking options.