The Irish Farmers’ Association (IFA) is set to meet with Ulster Bank representatives today (Thursday, May 5) to discuss the future for its account holders.
Last year, NatWest Group plc (NWG) confirmed a “phased withdrawal” of Ulster Bank from the Republic of Ireland.
The bank’s business in Northern Ireland is to be unaffected by the decision.
IFA National Farm Business chair Rose Mary McDonagh claimed that the exit of Ulster Bank from the market is creating “huge uncertainty and added stress” for many farmers, who are already worried about escalating input costs and falling farm incomes.
“Anecdotally, we’ve heard of cases where existing Ulster Bank customers are waiting literally months for an initial meeting with a new financial provider to set up a current account facility with them.
“Others are encountering obstacles in opening business accounts and overdrafts, even though personal accounts are held with the new bank provider,” she said.
“All the push is towards online account opening. However, this doesn’t work for all customers, particularly our most vulnerable.
“We have heard of internal policies within the pillar banks restricting daily manual account opening,” McDonagh claimed.
“It’s not feasible or fair on our customers. We will be engaging with the Central Bank to ensure this issue is closely monitored.
“We cannot have a situation where farmers have no functional business current account/overdraft to maintain on-farm operations,” she said.
McDonagh advised farmers who are Ulster Bank customers to take steps to move to a new financial provider.
However, she added that these farmers need clear direction and support to make the transition or switching process as seamless as possible.
The IFA National Farm Business chair said that the remaining financial providers need to put in more resources to eliminate “the massive waiting times” to open current accounts.
She added that they must also ensure the smooth transition of customers and any associated banking facilities and services.