Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
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Rural Cash Access Adapts as Bank Branches Close
Bank of Canada Staff Report | March 27, 2025
Image: Canadians' access to cash in 2023 (Bank of Canada, Staff Research)
Digital Services, Mobile banking vans, and Non-bank Owned ATMs Are Filling Gaps Left By Traditional Banks
On March 21, 2025 the Bank of Canada's staff published a cash-related study called 'Canadians Access to Cash in 2023' (16 page PDF) that confirms what most folks especially fintechs and financial institutions (FI) know. That is banks and credit unions are quietly closing branch locations across Canada, particularly in rural and remote areas.
See: Bank of Canada Releases New Guidance for PSPs
The report compares a snapshot taken in Q4 of 2019 and compared it with Q4 in 2023, four years later, and found that 561 branches were shut down, along with more than 900 bank-owned ATMs (automatic teller machines). Now even though the banks and credit unions are closing hundreds of ATMs, private companies or white-label ATMs, fintechs, and innovative alternatives have moved in to fill the gap to provide access to cash for people who rely on them.
“The infrastructure for accessing cash may look stable on the surface, but the underlying delivery models have changed significantly.”
Decline in FI-Owned Infrastructure (2019 Q4 to 2023 Q4)
| Type | 2019 Q4 | 2023 Q4 | Change |
| Bank branches | 5,921 | 5,699 | –222 |
| Credit union branches | 2,984 | 2,645 | –339 |
| FI-owned ABMs | 21,538 | 20,604 | –934 |
| White-label ABMs | 38,863 | 39,660 | +797 |
The table above is sourced from the BoC's staff research report and shows that white-label ATMs, typically not located in retail stores and not affiliated with any financial institution, now make up approx two-thirds of all automatic teller machines in Canada. While they offer convenience, they often come with higher fees and lack the services or security that bank owned ATMs provide.
Impact on Rural Access
In many rural or remote communities where branches and ATMs have been removed, residents now have to travel further to access basic financial services. Credit unions which often serve smaller populations, have reduce the number of branches at a steeper percentage drop than major banks.
See: Canada Post Launches Postal Banking With KOHO
While a growing number of Canadians are transitioning to online banking, those that still rely on cash such as seniors, some small businesses, and those with limited internet access, are faced with rising challenges to access basic banking services.
What’s Filling the Gap?
Some innovative partnerships and initiatives are expanding access through digital and community-based models.
📮 Canada Post + Koho
Earlier this month, Canadian fintech Koho and Canada Post formed a partnerships and launched postal banking services via the My Money Account, a digital spending and savings account managed through the KOHO app. So citizens living in rural or remote areas that live near a post office will be able to load cash, access funds, and manage their money at their local post office and users can deposit cash at over 6,000 Canada Post locations. The service is expected to rollout nationally this year 2025 and is specifically targeting rural, remote and indigenous communities.
🚐 Desjardins Mobile Banking Units
While we've never stepped in one, reports online show that Desjardins has launched mobile banking branches, which are fully equipped vehicles that travel to underserved regions of Quebec. These mobile branch units offer in-person banking services, including deposits, withdrawals, bill payments, and consultations. The approach is proving effective in areas where internet access is limited and/or digital adoption is low.
💻 Digital Financial Services
Digital banking platforms like EQ Bank, Koho, and Wealthsimple Cash are also helping Canadians open accounts, pay bills, and send e-transfers, all remotely. Most of these services offer secure ID verification tools that don't require a branch visit, so they are an ideal fit for communities lacking traditional brick-and-mortar infrastructure.
See: BoC Research on Digital Dollar’s Impact on Economy
Digital banks have become a reliable alternative for delivering a growing suite of financial services at lower rates than traditional banks providers.
Outlook
As the number of physical banking locations and ATMs decline in rural communities, the alternative solutions will be used more and more. From white label ATMs to postal banking services and mobile branch units, are now part of the financial infrastructure of rural Canada.
The National Crowdfunding & Fintech Association (NCFA Canada) is a financial innovation ecosystem that provides education, market intelligence, industry stewardship, networking and funding opportunities and services to thousands of community members and works closely with industry, government, partners and affiliates to create a vibrant and innovative fintech and funding industry in Canada. Decentralized and distributed, NCFA is engaged with global stakeholders and helps incubate projects and investment in fintech, alternative finance, crowdfunding, peer-to-peer finance, payments, digital assets and tokens, artificial intelligence, blockchain, cryptocurrency, regtech, and insurtech sectors. Join Canada's Fintech & Funding Community today FREE! Or become a contributing member and get perks. For more information, please visit: www.ncfacanada.org
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