ALLIED Irish Banks (AIB) has overturned its decision to remove cash services from 70 of its Irish branches following “public unease” it has said.
The U-turn came after a customer backlash following its announcement, early last week, that counter staff at its branches would no longer deal with cash, cheques or bank drafts.
It had decided on the move after seeing a “dramatic increase” in the use of digital banking.
This included 2.9 million daily digital interactions compared with 35,000 branch visits.
It also said there was a 36 per cent decrease in cash withdrawals from ATMs and a 50 per cent drop in cheque usage over the past five years.
Over the counter teller transactions also dropped by 50 per cent it claimed, while mobile and online payments rose by 85 per cent.
In a statement AIB said: “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.
“However, recognising the customer and public unease that this has caused, AIB has decided not to proceed with the proposed changes to its bank services.”
John O’Connell, general secretary of the Financial Services Union (FSU) welcomed the move.
He said: “Survey after survey tells us that public trust in banks is extremely low and decisions like this only reinforce the view that bank senior management are out of touch with their customer’s needs.”
He said having workers and consumer advocates on banking boards would bring “a different dimension to the internal decision-making process in AIB and may have avoided the unease and anger of the last few days”.
Just last year AIB slashed its branch network in the north from 15 to seven.
At the time a spokesperson said the bank was “truly committed” to services here, but closed branches "to provide a sustainable future for AIB in Northern Ireland so that we can continue to play our part in strengthening the local economy”.
The bank now has 170 branches across Ireland and offers banking services through An Post's 920 offices.
