Irish Rural Link (IRL) is calling for the establishment of a public community banking model following the decision of AIB to cease cash-related services in 70 of its branches nationwide.
IRL – which is a national framework representing rural communities – said in a statement yesterday evening (Thursday, July 21) that such a banking model is now necessary.
“Many people continue to use cash and have not moved to banking online or don’t feel safe using card. Many of these are older people or people on low incomes who live from week to week,” the organisation said.
“To expect these people to travel longer distances to access cash services is just unacceptable and shows no consideration given by the bank for these customers.”
IRL also highlighted that, for small businesses which still have large cash transactions and need to keep coins and small notes, the removal of cash services presents problems around security and time.
“If they need to travel to the next larger town to get coins this could take an hour or more round-trip. This means they may need to close their businesses during this time if they are on their own,” the group noted.
These businesses may, as a result, reduce the number of trips they make to the bank, which could mean keeping larger sums of money on site and on their person, IRL argued.
“This is just not doable for these businesses.”
The group claimed that AIB was showing “utter disregard” for their customers.
IRL argued that a community banking model would provide cash services to people while supporting small and medium enterprises (SMEs) and micro enterprises to grow and expand their businesses.
Such banks would be “embedded in the community, building relations and trust between the bank and its customers,” the organisation outlined.
Seamus Boland, the CEO of IRL, commented: “Every couple of months we are hearing about banks closing branches or services, mainly in rural areas. People and businesses still need to use cash and such closures cannot continue.
“A community banking model now needs to be established so those who need to deal in cash or do not have the digital skills to have access to banking services,” he added.
AIB criticised
AIB has been sharply criticised from all corners for the announcement of the decision to end cash services in 70 of its 170 branches, including by politicians.
Speaking today, senator Victor Boyhan said that the bank’s plans will impact on the rural and farming community.
“The taxpayers bailed out AIB and other banks. Let’s be clear they have an obligation to the state and its people,” he argued.
The senator added: “Farmers need access to cash and banking services…and have fair access to credit in the courser of their farm enterprise.”