Government and AIB officials to meet as Taoiseach calls on bank to 'reconsider' cashless decision

The bank said earlier this week that cash withdrawals, ATM, and cheque services would cease at the 70 branches. Picture: Denis Scannell

Officials from the Department of the Taoiseach will meet with AIB next week in a showdown over the bank's decision to to end cash services in 70 branches

Sources said that the meeting had been sought after Michéal Martin told reporters in Singapore that the bank should reconsider the move.

The bank said earlier this week that cash withdrawals, ATM, and cheque services would cease at the 70 branches, claiming it would free up the branches for opening new accounts, mortgages, loans, and financial planning.

It already has 22 cashless branches, and the new changes are set for September and October.

Michéal Martin said the bank should consider the impact the move would have on rural and older people.

"I think the banks are part of society. They've got obligations as well in terms of the social contract and understand the changing patterns in banking and how different generations are approaching banking in different ways," Mr Martin said.

"We are moving towards a more cashless society. But that said, there are significant cohorts of people, businesses and towns across Ireland who need this facility. And I do believe AIB and the banks should take notice of this. And certainly, we will engage with the banks on that."

The Taoiseach had been called on by a group of Kerry councillors to intervene in the situation, with fears cited that some people would have to travel 70km for cash services.

"I think they need to consider the people who have been loyal. Some customers have been with the bank down through the years, particularly more senior generations.

"And I think the economics for many, time is a factor as well. And I do believe they should reflect and reconsider the scale of what they're doing."

TD voices 'grave concerns' over impact on enterprise 

A Fianna Fáil TD is calling a meeting with the minister for finance over the decision by AIB to make 70 of its branches cashless.

James O’Connor has written to his fellow party members asking for their support in demanding the meeting with Paschal Donohoe.

In the letter, Mr O’Connor asks his colleagues to support him in his bid to hold an “emergency meeting” with the minister to discuss the future of banking services in Ireland.

"I am sure that many of you have experienced the outrage and frustration about AIB’s decision to withdraw a substantial proportion of its community banking services.

"This is particularly concerning for vulnerable service users and small businesses who rely on cash services provided in bank branches.

"I have grave concerns about how this move will impact enterprise on our main streets and in rural Ireland,” the TD writes.

“In Q3 of 2021, Bank of Ireland began the process of closing down 88 separate bank branches. The departure of Ulster Bank from the Irish market along with AIB and Bank of Ireland’s closures/withdrawals will leave a significant number of large rural settlements and suburbs of our cities with no banking services."

He said while he acknowledges that digital banking and new platforms such as Revolut are changing how consumers save and spend money, “we must also acknowledge that cash services remain vital to many SMEs in our economy”.

"I do not feel it is acceptable that we as a party would allow the banks to go unchallenged in their latest efforts to curtail community banking services.

"It is for that reason that I propose Fianna Fáil TDs and senators request an urgent meeting with the minister for finance to outline our concerns and to seek sensible solutions before it is too late,” he added.

AIB has opened about 208,000 new accounts so far this year, a 110% increase since the start of 2022.

With Ulster Bank and KBC leaving the retail banking market in Ireland, AIB has swooped in to try and entice customers over.