Fact sheet: Cormorant Island Financial Services

Population:

• 1,200 people: 600 from the 'Namgis First Nation and 600 from the Village of Alert Bay
• 10% of population has no account at a formal financial institution, compared with 2.5% nationally (World Bank, 2011)

Business:

• 85 licensed businesses
• Sectors include professional services, accommodation/food & beverage, construction, tourism, retail, transportation, communication, government services
• Local economy is very seasonal, due to the reliance on tourism and to a lesser extent fishing and forestry

Banking:

• Closest financial institution branch is in Port McNeill, a 45-minute ferry ride away. A return trip takes half a day, costing $11.65 per person and $26.80 for a vehicle.
• Limited access to cash exchange reduces the efficiency of the local economy by increasing cash and barter transactions and forcing businesses to keep large amounts of cash on hand.
• Residents prefer face-to-face banking services
• 64% chose personal branch visits as their mode of dealing with simple transactions
• 96% want to conduct complicated bank transactions in person
• 70% visit a local branch at least every three weeks
• Residents purchase about 50% of their goods and services on the island, estimated at $1,000 per month per person.
• Island businesses have payrolls of up to $250,000 and pay employees through local financial institution or by cheque.
• Almost half of Island businesses receive over 50% of their annual revenue in the form of cash, requiring regular cash deposits.
• Businesses spend up to $250,000 per month on the island, mostly by cheque.

Source: Headwater Capital Consulting, Access to Financial Services for Cormorant Island, Survey Results, 2014