AIB u-turn on cashless banks

The AIB has made a u-turn on its decision “go cashless” at 70 of its branches, including Kells in County Meath and Carrickmacross and Castleblayney in County Monaghan.

There had been a furious reaction locally to plans by AIB to stop processing cash 70 of its 160 branches nationwide before the end of the year - though the branch in Cavan Town was unaffected.

Banks earmarked for change wouldn't have notes, coins, cheques, foreign exchange, bank drafts, and would also see any drop safes and night safes removed.

However AIB has said today that it is reversing its decision in a move that has been described as “a victory for people power.”

An AIB statement this morning said: “Recognising the customer and public unease that this has caused, AIB has decided not to proceed with the proposed changes to its bank services.

“The bank continues to retain its 170-strong branch network in its entirety and will also continue to offer banking services through its relationship with at An Post at its 920 post offices nationwide.”

The news had sparked outrage among AIB customers nationwide and generated quite a debate on the Celt's Facebook page.

Deputy Peadar Toibin, who had criticised AIB highly in recent days, welcomed the reversal of the decision.

“We welcome the decision by AIB to reverse their decision to close cash services at 70 banks. However the crisis in banking will continue unless there is the provision of proper competition in the banking sector. There is a disastrous lack of competition within the banking market. It is the root cause of the continuing dysfunction in banking throughout the state."

Cavan TD Brendan Smith (FF), who was also most vocal on the issue, has welcomed this morning's announcement.

"This is very important for so many people, businesses and communities that depend on banks throughout the country. People are entitled to basic financial and banking services within a reasonable distance of their home or business.

"The financial institutions should not be reducing services to the public while a review of banking in this country is underway," he told the Celt.

His party colleague Niamh Smyth is also delighted AIB has halted its plans to remove cash services from 70 branches including a number in this constituency.

“There was widespread concern and deep disappointment when AIB announced plans to stop providing cash at many local branches across the country earlier this week. Today’s announcement demonstrates the force of people power. This announcement was met with outrage from all sectors of society and simply wasn’t acceptable,” she said.

Fianna Fáil TDs were among a number to make representations to AIB management to reverse the decision.

“Withdrawing cash services from branches in Castleblayney, Carrickmacross and Kells will leave many of our most vulnerable people in towns across Ireland without cash banking services, with some customers having to travel an hour to access cash and ultimately getting left behind in terms of being able to effectively deal with their personal finances on a day-to-day basis. This would have ultimately resulted in just two fully functioning (offering full services) AIB branches in Counties Cavan and Monaghan.”