Bank to vacate Davis

 

People’s United — the last remaining bank with a branch on campus — will be closing its doors at the end of the semester, leaving students without a location on campus to manage their funds.

The bank has maintained an office on the first floor of the Davis Center for five years, the minimum commitment through a lease. It chose not to renew its contract at the end of June, prompting a search to find a viable replacement, according to the Office of the President's announcement.

Allen Josey, director of operations and events services at the Davis Center, called the bank’s decision to close their office at the Davis Center “unfortunate,” and said the conversation leading up to the closing was not give-and-take.

“When People’s bought out Chittenden, their business focus was more oriented to commercial, larger balance accounts,” Josey said. “The typical college student doesn’t have $40,000 in their savings account.”

The branches' location in the Davis Center has a substantial number of customers every day, Josey said. The real problem is in the changing business model of banks, many of which are closing locations due to convenient technology now available to their customers.

“In two years’ time, there might be no banks that want to bother [with opening a branch],” Josey said. “As everything goes onto your iPod or whatever, the ATMs will slowly become less common.”

Josey said he is now in the process of identifying potential tenants and is hoping to secure one by the summer. He will spend the next several weeks reviewing proposals and meeting with other Davis Center employees as part of an advisory committee.

Based on the feedback from UVM students and faculty, another bank is the overwhelming favorite as a replacement, but other types of services have also been identified, including Credit Union, a hair salon, Outdoor Gear Exchange and a pharmacy, Josey said.

The Davis Center sees 2.4 million visitors per year and is a unique location for interested companies whose service would have to cater to students’ tastes and also to their schedules, because foot-traffic in the Davis Center declines steeply in the summer months, he said.

The price to rent the space is negotiable but often comes out to about $30 per square-foot, a comparable rate to downtown spaces in Burlington, Josey said.

“We’re waiting to see who’s interested,” he said. “Sort of like asking someone out on a date.”

Senior Matt Parisi has been a People’s United customer for several years and has utilized the on-campus branch location, though he admits that online banking is often more convenient and the direction that banking is heading.

Parisi said he thought the biggest problem the bank faced was when People’s bought out the smaller Chittenden Bank, creating a large conglomerate bank that may have sacrificed some of its customer base in the pursuit of larger wallets.

“A year after, they changed the names,” Parisi said. “But here’s the problem: they decided to close about half the locations in Vermont. It’s smart economically, but destroys customer relations.”

Parisi was adamant that whatever replaces People's United in the Davis Center should be a financial service, suggesting that a new bank could incorporate some educational component for students.

“A lot of students can’t manage their money,” he said.

Proposals from prospective tenants are due at the end of the month, though Josey said that the committee may not accept any of them.

He said the plan would be to carefully weigh all options and campus feedback to decide if a future tenant aligns with the needs and wants of the UVM community.

“We’re trying to make sure it will make sense for [the] student population,” Josey said. “My goal is for something that everyone wants.”

The existing People’s ATM will remain in the Davis Center through the summer and possibly even until early next year, he said.