AIB overhaul set ‘to benefit customers’

AIB outlined a complete reorganisation of its structures in a new strategy document released internally to staff yesterday and seen by the Irish Examiner.

The bank will now be organised in four divisions. All customers from retail through to corporate will become the responsibility of customers and distribution, which will be headed up by Bernard Byrne.

Fergus Murphy becomes head of products which has responsibility for developing and managing all of AIB’s financial products.

Ronan O’Neill becomes head of AIB UK; and Peter Spratt will become head of Financial Solutions Group which will be responsible for restructuring the bank’s legacy troubled assets.

In a document emailed to all staff, CEO David Duffy said the move was aimed at simplifying the organisational structure, “breaking down many of the barriers between the different parts of our business and unifying them into a new structure that is flatter, more inclusive and, most importantly, much more effective in how it meets the needs of our customers.”

The strategy document says there will be a relentless focus on driving down costs. “Our goal is to become a deposit-funded bank at sustainable pricing levels.”

“In tandem with cost reductions we will be adjusting the pricing of our lending products to be more in line with our competitors and better aligned to our costs . . . we will not chase market share to the detriment of margin or without adherence to our credit policies.” Many of AIB’s legacy financial products, particularly in the mortgages division, are loss making.

In an effort to substantially reduce the overall cost base, there will be a huge drive to move most retail banking services online, particularly through mobile banking apps and next generation mobile services.

There will be an overhaul of AIB’s branch network. In the future, branches will move away from offering retail services to offering more complex advisory services to business banking customers. Up to one-third of the branch network could be closed.

Mr Duffy, who joined the AIB last December, is quickly putting his stamp on the bank. A new leadership team has been put in place which includes Anne Boden as chief operating officer, Dominic Clarke as head of internal audit, Peter Rossiter as chief risk officer, and Enda Johnson as head of corporate affairs and strategy.

Moreover, 50 individuals from within the organisation who show potential will form a leadership council, which will work closely with the leadership team. The council will be responsible for reviewing procedures and highlighting where improvements can be made.