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Hard-to-house society branches into banking
By David Carrigg-Staff writer
VanCity is opening a branch in the Downtown Eastside to help low income residents left without banking services after the Four Corners Community Bank closes.
Dave Mowat, VanCity's executive director, said the branch is unique because it will be staffed by employees from PHS Community Services Society (formerly known as the Portland Hotel Society), a large non-profit society that provides accommodation for the hard-to-house in the troubled neighourhood.
In addition, the bank premises at 92 East Hastings St. have been leased to VanCity by the Vancouver Coastal Health Authority virtually free of charge. Renovation work at the branch is also being completed by VanCity customers and non-profit societies at no cost.
"We are excited about how it will work," Mowat said. "It is a branch of VanCity, but the Portland will provide staff for the branch. It sounds corny, but what we want is something by the people for the people. The Portland knows the community well so they will provide the service and VanCity will provide all the financial arrangements."
Under the agreement, the branch, expected to open March 15, will be called Pigeon Park Savings and will be staffed by four PHS employees during regular office hours.
Mowat said VanCity will cover initial operating losses, but each customer will pay $5 a month for a basic savings account and access to a closed-loop system of automatic telling machines. The ATMs, refurbished VanCity units, will be placed in safe, indoor locations in the Downtown Eastside.
Mowat said he expects the operation to break even, but would not reveal how many customers the branch would need to cover costs. Mowat said the branch will not remain open if it incurs sustained losses.
The decision to open the branch was prompted by the closure of the failed Four Corners Community Savings Bank at the northeast corner of Main and Hastings streets.
Four Corners was created by the former NDP government in 1996, under the direction of Jim Green, who is now a city councillor but was working for the government's community development branch at the time.
The idea was to provide basic bank services to people who would not otherwise have access to bank accounts because they lacked identification or had mental health or drug addiction problems that made them difficult to deal with.
However, between 1996 and 2003, the bank lost $5.7 million. The provincial Liberals have announced plans to close the institution March 10.
Mowat said VanCity and PHS staff have set up an information table at Four Corners to encourage customers to sign on with Pigeon Park Savings. Four Corners customers currently pay a monthly fee of $3.50.
Mark Townsend, key executive with PHS Community Services Society, said the new site was formerly a Bank of Nova Scotia branch.
"We've garnered tremendous volunteer support from VanCity and their staff plus lots of other people from Maxwell flooring to Telus. The whole thing is pretty amazing," said Townsend, adding the location is only temporary.
John Les, the provincial government minister responsible for Four Corners, said the bank has 1,500 active accounts and 900 inactive accounts.
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