ACC Bank is withdrawing from providing standard banking products, such as deposit accounts and current accounts, and will focus solely on debt recovery.
In a statement this morning, it said: “During 2014, the bank will close all its business centres to the public and intends to give up its banking licence. It will however continue to be a regulated entity and will support its customers in the agriculture sector, given its strong heritage in this area. All funds on deposit with the bank will be repaid in full.”
The statement outlined that there will be no changes to the businesses of Rabobank Ireland, which continues to have a strong position in the food and agriculture sector, and RaboDirect, two other operations of the Rabobank Group in Ireland, and they will continue to operate as usual with no impact on their customers or businesses as a result of this restructuring.
As part of the restructuring, the bank will also initiate a cost-reduction programme through a voluntary-led severance programme, which will see a reduction of up to 180 employees, from approximately 470 at present.
In addition, ACC Bank said it is exploring the possibility of outsourcing a small portion of its loan book, excluding agricultural loans. Capita has been selected as the preferred service provider.
“The bank will write to all customers shortly and will also communicate well in advance with customers affected by any of these changes.”