'Devastating' news for Ilderton, Ont., as CIBC plans to close town's branch

No one in Ilderton, Ont., is happy about the news, but Debbie Heffernan has more reasons than most to be angry about CIBC's plans to permanently close the town's only bank.

Heffernan is a lifelong resident of the farming community north of London and retired after spending 35 years working for CIBC, including 25 years at the Ilderton branch. She's also a Ward 1 councillor for Middlesex Centre, which includes Ilderton.

"I was in complete shock, I've been here since childhood basically," she said about CIBC's letters sent to clients last week announcing the bank would close on April 4 of next year. "It affects a lot of people." 

Those affected include owners of businesses along the town's small commercial strip, merchants who use the bank for everything from deposits to exchanging bills. Although the town's population is less than 3,000 people, Ilderton is growing with new subdivisions popping up on the town's outskirts.

Many of the bank's customers are seniors who Heffernan said often don't bank online. From her working years, Heffernan knows that many of the area's farmers prefer coming into the bank to deal with staff they know rather than banking online or by phone. 

"The effect on the farmers is going to be tremendous," said Heffernan.

The letter sent to clients said all accounts would be automatically moved to the bank's branch at Masonville Mall, about 15 kilometres away in north London.  

In a statement to CBC News, CIBC said the decision to close any branch "is not taken lightly" and that changing business conditions forced the closure.

"Our Ilderton Banking Centre has experienced lower business volumes for some time, and currently more than 90 per cent of our client transactions take place outside of a banking centre, through mobile, online and telephone banking," the statement said. 

"As a result of this shift, we've made adjustments to our network."

Heffernan said the branch has traditionally been profitable, even after many of its services have been shifted to other branches.

"We really need this branch," said Heffernan, who said the branch has remained profitable even as it's reduced services at that location over the years. "The town is growing, businesses are growing and CIBC is ducking out." 

CIBC's departure will mean there will be nowhere to bank in town. Heffernan said even the CIBC bank machine is going. 

Kathy Nixey owns Floral Temptations in Ilderton's small commercial strip.