AIB said it will scrap plans to make 70 of its 170 branches cashless after members of the public, various organisations and politicians criticised the plan.
Notes, coins, cheques, foreign exchange and bank drafts would have been unavailable at the branches from the autumn, which cash machines outside would have been removed.
There was sharp criticism of AIB’s plan, with politicians pointing out the bank took almost 21 billion euros of taxpayers’ money and is 60% owned by the state.
Yesterday, Taosieach Micheál Martin asked bosses to reconsider.
In a statement to the PA news agency, AIB said it decided “not to proceed with the proposed changes to its bank services” because of the “customer and public unease that this has caused”.
Finance Minister Paschal Donohoe welcomed the announcement, saying 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”.
“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.
“We have seen many changes to our banking sector in recent years, driven by factors including advances in technology and changing consumer demand.
“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.”
Earlier today, Minister of State Ossian Smyth said the withdrawal of cash, cheque and cash machine services from 70 branches across the country was an “opportunity”.
“I want to see strong community banking across Ireland. Whether that’s done through credit unions, post offices or community banking,” Mr Smyth told RTÉ’s Morning Ireland programme.
“I think this is an opportunity for the post office and the credit unions.”
An Post had said its 920 post offices would continue to offer the services, six days a week, that AIB had intended to withdraw.
This includes cash, foreign exchange and cheque services.
In a statement today, AIB said: “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.
“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 that same timeframe.
“It was in the context of this evolving banking environment and the opportunity to enhance its long-standing relationship with An Post that AIB took the decision to remove cash services from 70 of its branches.
“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.”
