The TD/CP concept is what we have been discussing on the deposit side with the likes of a Tangerine or Simplii, but there has to be a business model for it to pay. Neither CP nor a bank is a non-profit charity so some 'fee' arrangement would need to be paid by the user/customer. At the end of the day, what we are essentially talking about is a 'full service' ABM where cheque and cash can be deposited, bills paid and cash withdrawn. That could be located in the town hall, drug store, postal outlet or supermarket and should be good enough for an island of 2400.
However, the link is full of CBC silliness about what is inconvenient. No one has to pay 90% of one's bills at a bank or ATM. They can be on PAD and any gov't cheques coming in should be direct deposit anyway. Almost all transactional banking activity can be automated without even having to access one's bank account in any way ever from a phone, computer nor ABM. The real issue is much of the senior crowd (over 80 especially) has not moved beyond the year 2000. That will eventually resolve itself as these folks drop off the planet.