AIB will not proceed with the removal of cash services at 70 of its branches, the bank has said.
A spokesperson for AIB said the bank recognised the “customer and public unease” that was caused by its announcement earlier this week, and for that reason has decided not to go ahead with the move.
In a statement today (Friday, July 22), AIB explained that the initial plan to remove services from certain branches was promoted by a decrease in demand for cash services.
“In recent years, there has been a dramatic increase in the use of digital banking services and a decline in branch visits and cash usage.
“In AIB’s case, there are 2.9 million daily digital interactions compared with 35,000 customer branch visits. There has been a 36% decline in cash withdrawals from ATMs and a 50% fall in cheque usage over the past five years,” the AIB spokesperson said.
“AIB has also seen a fall of almost 50% in branch over-the-counter teller transactions, while mobile and online payments have increased by 85% in the same timeframe.”
AIB U-turn welcomed
AIB’s U-turn was welcomed by Minister for Finance, Paschal Donohoe, who said: “I note the significant public reaction to AIB’s announcement earlier this week and I welcome the bank’s decision not to proceed with the proposed changes to customer services in certain branches.
“Banks have a key role in maintaining the flow of cash through the economy and ensuring appropriate access to retail banking services for all in society, including the vulnerable,” he added.
“We have seen many changes to our banking sector in recent years, driven by factors including advances in technology and changing consumer demand.”
The minister also noted that a review of the retail banking sector is currently underway.
“It is against that background that I launched the Retail Banking Review to assess how the sector can be best positioned to meet current and future customer needs. I look forward to receiving the recommendations of the review later in the year,” he said.