The Irish Creamery Milk Suppliers’ Association (ICMSA) has said there is “huge disappointment” in rural areas following a decision by AIB to make 70 of its branches nationwide ‘cashless’.
The bank has confirmed that 70 branches will be repurposed to focus more on account opening, financial planning, mortgages, loans, savings and investments.
In a statement, AIB said: “With digital usage soaring, the cost of providing cash services has become increasingly unsustainable.
“As a result, cash, ATM and cheque services will be removed from these branches but customers will continue to have efficient access to cash in their communities.”
AIB added that this will enable the bank to provide additional account-opening facilities as Ulster Bank and KBC leave the market, while also ensuring that its branch network has a sustainable future in the community.
President of ICMSA, Pat McCormack said it will put further pressure on rural towns as they try to adjust to a changing economic environment.
“While a lot of transactions are now online, the reality is that cash is still hugely important in the rural economy, for small country businesses and for the older generations in particular, the use of cash is critical and the local bank was hugely important in terms of accessing cash and doing the normal day-to-day transactions.
“People are also concerned that the loss of cash services is just another step towards closure of the branch and it is important that AIB provide guarantees that this is not the case.”
AIB partnership with An Post
AIB has said that bank customers wishing to access cash can do so at any of the country’s 920 post offices, which it said offer extended opening hours, including Saturday opening, across the national post office network.
“At their local post office, customers can also withdraw up to €1,500 in cash per day from their AIB current account and lodge up to €5,000 a week in cash,” the AIB statement added.
“Businesses can lodge up to €50,000 by prior arrangement with the post office. All customers can lodge euro cheques to their current account. Customers can also use Billpay and foreign exchange services at An Post.”
AIB claimed that for the 70 ‘repurposed’ branches, the average distance to a local An Post office is less than 350m.
While acknowledging the increased role to be played by An Post, McCormack said that the government will have to ensure that ATMs remain available in rural towns and villages.
“Without access to cash, the economic viability of these towns will be further undermined and this cannot be allowed to happen,” McCormack concluded.
AIB’s managing director of retail banking, Jim O’Keeffe, said: “How customers want to bank with us is undergoing a huge transition as digital usage is soaring.
“At AIB we are responding to that digital transition, maintaining the largest branch presence across Ireland and providing alternatives for customers to access cash and payments in their communities.