Ulster Bank reveals businesses are slow to switch due to 'complexity' of process

KBC and Ulster Bank are set to leave the retail banking market in he Republic next year. Picture: Brian Lawless

Ulster Bank met with other industry representatives in a final push to get business customers to switch their accounts before the bank exits the market in the Republic.

In a separate meeting, the Banking and Payments Federation Ireland (BPFI) met with the Central Bank, ComReg and the Commission for Regulation of Utilities (CRU) to discuss a co-ordinated approach for customers moving from KBC and Ulster Bank which are preparing to fully exit the retail banking market in the Republic next year.

Ulster Bank indicated that its business customers have been slow to switch accounts due to the “complexity” of the process. They did not reveal how many business customers have yet to move to a new bank.

“The switching/closing process can typically take longer for a business customer as requirements are often more complex,” said chief executive of Ulster Bank Jane Howard.

There are often several documentation requirements for a business looking to switch bank. The larger the business, the more complicated this gets, said Ulster Bank.

“Having a working current account is crucial for businesses to be able to pay their employees and suppliers, receive payments and carry out all of their financial duties,” said Ms Howard.

The BPFI estimated that around 30% of customers moving account have updated their direct debit originator with their new bank account details.

“This very much underlines the fact there is still a journey to be travelled and further action is required by both customers and the wider industry in this regard,” said Mr Hayes.