Cavan AIB unaffected by changes but others in the region to go cashless

The Cavan AIB branch is not among dozens nationwide to go cashless by the end of the year but others in the region have been hit including Kells and Carrickmacross, writes Michelle Taite.

Allied Irish Bank (AIB) has announced that 70 of its 170 branches nationwide are to go cashless in the coming months.

The move will result in the affected branches not having any cash, cheques, coins and foreign exchange, as well as their corresponding drop and night safes, also being removed.

While Cavan’s banks will not be directly affected by this decision, many banks in neighbouring counties will be made cashless, including Carrickmacross and Castleblayney in County Monaghan and Kells, County Meath.

The transition at the 70 branches will begin later this year, between September and October, with increased AIB services through the post office network.

“With digital usage soaring, the cost of providing cash services has become increasingly unsustainable,” AIB said in a statement. “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.”

Speaking about the upcoming change, Deputy Brendan Smith said: “The proposal by Allied Irish Bank to turn 70 branches into cashless outlets represents a further significant reduction in the provision of financial services, particularly in rural Ireland.”

He is concerned at the decision so soon after KBC and Ulster Bank announced their exits from the Irish banking market.

“This comes at a time when two retail banks are exiting this State and more than a million customers have to open new accounts. In various Dáil debates I, along with others, had strongly argued for the establishment of a banking review in this country with all stakeholders participating. It is most disappointing that AIB made this proposal in the middle of this important review."

The bank has also pledged to recruit 500 remote staff members by the end of the year to assist in the educational training of using the online banking platform.

“I welcome the bank’s decision to recruit more staff and I hope they will be employed in this country. Unfortunately there is no mention of additional staff to deal with customers on a person to person basis," stated Deputy Smith.

Aontú leader Peadar Tóibín TD has also criticised the AIB decision, stating: “AIB operates by licence from the State yet unilaterally deletes cash availability from customers. This is not good enough."

He also criticises the decision while the banking review is underway and accused AIB of ignoring its collective responsibility to customers.

"AIB has shown complete disregard for the Irish people by removing cash services in 70 branches. Our banking sector is in complete disarray with the withdrawal of KBC and Ulster Bank. The market is over concentrated in the hands of just a few operators. This gives the remaining banks enormous supplier power and now they can do what they want. As families struggle across the country, AIB has shown that it’s only commitment is to increasing shareholder dividends and not to its customers,” said Deputy Tóibín.

He gave an example of one customer waiting 50 minutes to get through to AIB’s customer service section.

"In addition to this, reports to the committee of Public Finance have also highlighted the demoralising conditions bank staff are being subjected too. Banks must not be allowed to treat their staff and customers like this,” said the Aontú TD.

He's asking the government to encourage AIB not to proceed with this conversion to cashless services and restore trust in banking services.

AIB says it will compensate for the loss of some services for customers by expanding its existing relationship with An Post - this will allow customers to access more extensive cash and cheque services in 920 post offices.

An Post has welcomed the announcement, describing it as a "further deepening of the long-standing relationship between An Post and AIB", with approximately 540 post offices located in areas that are further than 5km from their nearest bank.

"Never has the local post office been better placed as both a resource and a focus for renewal," An Post added.