13% of remaining customers with exiting banks yet to open current account elsewhere

The survey shows a significant fall in the proportion of customers who were using current accounts with these exiting banks for certain regular payments between November and December. Photo Sasko Lazarov/RollingNews.ie

A new survey showed that 13% of combined remaining customers with Ulster Bank and KBC have yet to open a current account with a different financial services provider.

Meanwhile, 68% of remaining customers have opened a new account or plan to use an existing account with another institution, according to a survey by the Banking and Payments Federation Ireland (BPFI).

“While we have now reached a point where one in 10 customers report they still need to open an account, it is important to recognise that there is still a job of work to be done in getting this group of customers across the line,” said Brian Hayes, BPFI chief executive.

An additional 17% planning to close their account without replacing it. KBC and Ulster Bank are currently in the process of exiting the retail banking market in the Republic of Ireland, forcing hundreds of thousands to use accounts elsewhere.

The survey shows a significant fall in the proportion of customers who were using current accounts with these exiting banks for certain regular payments between November and December.

For example, 12% of respondents who had a current account with one of these banks were using that account to receive social welfare income payments in December, down from 24% a month earlier.

Similarly, the proportion making mobile phone or broadband direct debit payments from a KBC or Ulster Bank account fell from about 30% in November to 20% in December.

“As we progress through 2023, BPFI will continue to work closely with our members, regulators and other key stakeholders to support customers in the transition and complete the journey,” said Mr Hayes.

The BPFI consumer surveys include nationally representative samples of 1,000 adults and were conducted online by Amárach Research in November and December.

The BPFI represents the banking, payments and fintech sector in Ireland. It has around 125 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace here.