Bank branches likely to become regional, says business professor

They're too expensive to run and we can perform most of our banking tasks online anyway.

That's what Carlton University business professor Ian Lee has to say in response to Scotiabank's announcement it will be shutting down some of its rural Nova Scotia locations, including one in Sheet Harbour.

Lee says some branches are becoming expensive to run because many don't get enough people to justify keeping them open.

He says in person banking is going to become regional like hospitals.

“We don't have them in all villages and towns in Nova Scotia because we can't afford it,” Lee explained. “What we're going to see is regionalization of banking. I don't mean the banks are going to disappear but I think we are going to see a consolidation of branches because of the sheer cost of running them.”

Lee says statistics show online banking transactions to be at 77 percent across the country and increasing by as much as 4 percent every year.