Bank of Ireland closure in Mitchelstown slammed
News of the closure of Bank of Ireland’s Mitchelstown branch has been slammed by members of the local business community, as well as local representatives.
As news broke earlier this week of the 88 bank branches to be closed in the Republic, as well as several more in the North, the communities in Lismore and Glanmire were also coming to terms with the announcement, with another valuable facility set to disappear from their streets, primarily due to the uptake in digital banking, according to the bank.
The former manager of the BoI branch in Mitchelstown, Ben Lynch, has said the closure will herald an even more difficult time for small businesses, who will ‘struggle yet again’.
Fianna Fáil Minister for Mental Health and Older People, Mary Butler, has described the Bank of Ireland decision to close over 100 branches on the island of Ireland as a ‘devastating blow to older people’, writes Katie Glavin.
Three branch closures have been outlined for Waterford effecting Lismore, Kilmacthomas and Ardkeen.
Regarding the Lismore closure, Fianna Fáil Minister Mary Butler said this will result in a ‘huge loss to the local community'.
“Bank of Ireland has stated that the branches closing are predominantly self-service locations which do not offer a counter service. This is not the case for Lismore, a vibrant and active branch by all accounts, which offered full counter and traditional walk in services. Its closure will result in a huge loss to the local community.
"Loyal customers of the Lismore branch were devastated last year when the branch closed temporarily due to Covid-19 and no services, not even a lodgement facility, were available.
"The outcry from the community and the collective sigh of relief expressed by business owners and older/vulnerable people when the branch reopened last summer, should have been a clear indication to Bank of Ireland of the strong desire within Lismore to have full banking services maintained," the Minister said.
TRADITIONAL SERVICE
Minister Butler went on to note that the absence of these branches would be ‘felt deeply’ by loyal customers within local communities.
“While I acknowledge that Bank of Ireland has taken this decision on a purely commercial basis against the backdrop of an acceleration in digital banking, the move to withdraw vital services from older people, those with limited internet access and people with literacy problems, will have a deep impact in these communities at a time when people are already anxious.
“Mass changes in behaviour have resulted in more and more customers opting to do their banking via digital means on their phone or computer. Notwithstanding this, many people still have a need for traditional walk-in branch services, mainly older people, vulnerable customers and local businesses,” she said.
'EXPOLITING THE COVID-19 CRISIS'
Waterford Labour councillors have called for the ‘devastating’ closure of Bank of Ireland branches to be ‘paused’ during the pandemic.
The Waterford councillors have described the move as a ‘kick in the teeth’ for loyal customers and staff that will ‘rip the heart out of our communities'.
Local councillor John Pratt, claims that Bank of Ireland are ‘ exploiting the Covid-19 crisis’ in their closure of 88 bank branches across the nation.
“There is no doubt that Bank of Ireland is exploiting the Covid-19 crisis to drive down its costs. The bank’s ruthlessly opportunistic plans to cull 88 branches in towns across the country, including Lismore, will have an even more severe and direct impact on the fabric of our towns and villages, following on from the recent announcement that Ulster Bank plans to withdraw from Ireland,” he said.
Councillors are now calling on the Central Bank and government to intervene and pause this move during the pandemic.
“The Central Bank seems to be asleep at the wheel in allowing these closures. It is not just logging into current accounts. It is the commercial relationship between local businesses and the local bank manager.
"It is the link for local sports teams and community activities. This is an attack on provincial towns in particular and must be resisted in full,” Cllr Pratt added.
Fellow Labour councillor, Thomas Phelan pointed to the 2012 code of practice in which financial institutions are required to provide a two-month period of notice.
“In Ireland, financial institutions are
required under a 2012 Code of Practice for consumers to provide a two-month period of notice to customers and to the regulator if any changes are being planned to branch operations, but in the UK they must give 12 months, and meaningfully engage and consult with affected customers and communities where closures are under consideration.
“We are calling on Bank of Ireland to pause this and not use the Covid-19 pandemic to make such devastating change,” Cllr Phelan said.
NO COMPULSORY REDUNDANCY
Closures will see the branch network in Ireland reduce from 257 to 169 branches, which BOI state are ‘predominantly self-service locations’.
A new partnership with An Post is to offer customers access to a range of banking services at over 900 locations which will include withdrawing cash and making cash and cheque lodgements.
"There will be no compulsory redundancy process; and that affected staff can work in a different branch or another part of the business or opt for voluntary redundancy," according to Group CEO Francesca McDonagh.
The bank has also said that in a number of locations where there is no alternative ATM available, Bank of Ireland will maintain an ATM.