NIB forms alliance with An Post

NATIONAL Irish Bank (NIB) will become the first bank in the country to end cash transactions in its branch network when it phases out over-the-counter services later this year.

The Danish-owned NIB, one of the most vocal advocates of the electronic banking system, will use a new partnership with An Post to cater for cash transactions with its customers and use its own branches for card and electronic banking services and customer advice.

From the end of the year, NIB customers who wish to lodge and withdraw cash and cheques from their accounts over-the-counter can do so at any of An Post’s 1,200 or so post offices nationwide. Cheque business will also still be allowed at NIB branches.

The partnership venture, of which no commercial details have been disclosed, will not, however, be separately branded with unique product offerings and will only be open to NIB customers. In other words, it is not being established as a replacement service for the failed Postbank joint-venture between An Post and Fortis Bank/BNP Paribas.

NIB deputy chief executive Kevin Gallen said the new system reduces significant cash and security-related costs for the bank and provides staff with more time and opportunity to advise customers.

Last December, NIB announced it was cutting 150 jobs by nearly halving its branch network down from 58 to 33. That process will be complete by the end of the year. The network is down to 52.

Ironically, with the An Post tie-in, NIB is technically leapfrogging its competition to grow into the country’s largest banking network.

While it has invested heavily in its online and telephone divisions, NIB stressed this latest move is aimed at enhancing customer service and is not a precursor to retreating from the high street into a purely internet-based bank.

Chief executive Andrew Healy said the move forms part of a series of initiatives aimed at producing “an even better bank for the future” and “exemplifies our commitment to Ireland”.

Management hopes the bank, which has a 4% share of the market, can boost its share of business banking.

An Post, meanwhile, said it is investing in new technology and staff training to ensure a smooth transition in customer service for NIB customers.