Closure of Rathdrum Bank of Ireland branch ‘a body blow’
BANK OF IRELAND’S DECISION TO SHUT TINAHELY, CARNEW AND RATHDRUM BRANCHES PROVOKES SHOCK AND OUTRAGE, REPORTS EIMEAR DODD
Communities in south Wicklow are in a state of shock after Bank of Ireland said its branches in Carnew, Tinahely and Rathdrum will close permanently from September.
Bank of Ireland announced plans on Monday to close 88 branches across the country as it says in-branches visits have fallen as customers move to digital banking services. The bank’s decision to close three branches in the county provoked a backlash from local public representatives who highlighted that these closures will affect communities in rural areas who are struggling to recover from the impact of the Covid-19 pandemic.
The three affected branches currently offer self service banking and advice. Staff working at the these branches were informed of the bank’s decision on Monday morning. The Bank said there would be no compulsory redundancies and staff can apply for re-deployment or voluntary redundancy.
Bank of Ireland also confirmed a new deal with An Post to allow its customers to access some banking services at their local post office.
Speaking to this paper on Monday, Cllr John Mullen said, ‘to make this announcement as people in rural Ireland and rural Wicklow are coping with the continuation of Level 5 Covid lockdown is corporate cynicism at its worst.
‘There have been rumours of Bank of Ireland considering major branch closures over the past year but management within Bank of Ireland remained silent leaving staff and customers totally outside the loop. I have campaigned with rural communities to save our rural banking when the Tinahely branch was badly damaged over ten years ago. Today’s decision is the realisation of our worst fears.’
‘People living in rural Wicklow are sick and tired of continuously losing the services that all citizens should have access to. We have lost access to economic and social growth, lost access to high speed broadband, lost our post offices and now we lose our banking services after 100 years. For small businesses, farmers, families and visitors this is a bad day for rural Wicklow,’ Cllr Mullen said.
The elected members of Wicklow County Council agreed to a suspension of standing orders put forward by Cllr Mullen at Monday’s meeting so as to discuss Bank of Ireland’s decision.
Cllr Pat Kennedy, Cathaoirleach of Wicklow County Council, said, ‘I’m devastated to think the bank is closing a branch in a town growing at the speed Rathdrum is growing’.
Cllr Kennedy said the closure of the Rathdrum branch would also affect people living in Aughrim, Glenealy, Roundwood and Glenmalure.
‘The older generation don’t use online banking. I think it’s scandalous that the bank would turn its back on the town and the older generation’.
‘The bank is turning its back on rural Wicklow,’ Cllr Kennedy said, calling on Wicklow’s TDs to lobby Bank of Ireland to reverse its decision.
‘Rural Wicklow is being left behind. This is a body blow for people. A bank breeds business. This will have a damaging impact on the infrastructure of the town,’ Cllr Kennedy added.
Cllr Vincent Blake said. ‘Banks have a short memory. The public bailed them out and the return for the public should be keep services in rural areas. However, this is also a great opportunity for credit unions and post offices to fill the void’.
Cllr Blake expressed the view that Bank of Ireland were unlikely to reverse its decision to close its south Wicklow branches and communities may need to focus their efforts to ensure that local post offices and credit unions receive support to develop as they are ‘in a great position to take up the slack’ left.
The doors at the Tinahely, Carnew and Rathdrum branches temporarily closed during the first Covid-19 lockdown last year. At that time, concerns were raised by local communities that the closures could become permanent, however, these branches re-opened in June.
Gavin Kelly, CEO, Retail Ireland, Bank of Ireland said the bank was ‘committed to Wicklow’.
‘Although the trend has been to close branches, we have kept our branch network largely unchanged over the past decade. But we’ve now reached a tipping point between online and offline banking. Technology is evolving, and customers are using branches less, year on year. Between 2017 and 2020 footfall at the branches which are closing dropped by 60 per cent on average. And even before Covid-19, branch footfall had reduced by almost a quarter over two years. Our mobile app is our busiest channel, around 430,000 customers log in each day, and traffic is up one third since 2018.
Mr Kelly said the new partnership with An Post would ensure ‘continuity of services locally for both personal and business customers’.
‘We know changes like this can cause concern for some customers. We’re not making these changes immediately – no branches will close in the next six months. That ensures that the An Post partnership is up and running before any branches close, and we will communicate fully with all customers about every option available, in a nearby BOI branch, online or at a local post office.
‘Bank of Ireland has been in business since 1783, and we have always adapted and evolved as our customer needs and preferences change. We are committed to Wicklow and these changes will allow us invest in our other branches in the county as well as digital services. We will also continue to work with community groups through initiatives such as Begin Together, a €4 million investment programme providing funding for community-focused initiatives across the island of Ireland,’ Mr Kelly added.
Social Democrats TD Jennifer Whitmore said she had written to the Finance Minister, asking him to support the communities affected.
‘The closure of these branches will have an adverse impact on these rural areas which has already been negatively affected by the last recession and the current pandemic. These closures will only continue the trend of rural decline as banking facilities will not longer be made available. In turn, the retreat of this essential service will reduce foot traffic in the area which will also impact on the local economy.’
Bank of Ireland published its interim results for 2020 on Monday, which show a pre-tax loss of €374 million. The bank said the branch closures would result in savings of around €26 million per year. The ATMs at the majority of affected branches will also be closed.
RURAL WICKLOW IS BEING LEFT BEHIND. THIS IS A BODY BLOW FOR PEOPLE. A BANK BREEDS BUSINESS