National Irish Bank has announced plans to cut more than 100 jobs and close its network of 27 branches nationwide.
Within the next five months, the bank’s branches will all be shut and customers will be served through nine 'personal banking centres'.
The bank said the restructure of its retail business will addresses the radically changed banking environment in Ireland and shifts in customer behaviour to telephone and on-line banking.
But the finance union, IBOA, said it was blackest day in the history of National Irish Bank.
Larry Broderick, general secretary, said the decision to shut down the bank’s branches is totally at variance with the commitments given by its owners, the Danish Danske Bank, as late as May.
“The proposed closure of the branch network will have huge implications for staff and their families,” he said.
“While the financial position of National Irish Bank has been seriously compromised as a result of the mismanagement of the bank in the past, the decision to effectively scapegoat the branch network and its staff is disingenuous. While our primary responsibility is to our members in National Irish Bank, we also have serious concerns about the impact of the bank’s proposed changes on customers," Mr Broderick said.
National Irish Bank said day-to-day banking, as well as a large team of qualified financial advisers, will be based in
its personal banking ventre to facilitate applications for products.
Customers will also be able to meet financial advisers face-to-face in Waterford, Athlone, Cork, Limerick, Letterkenny and across Dublin in the IFSC, Tallaght, Swords and Stillorgan.
Jesper Nielsen, head of business development, said more and more customers want to do their banking by telephone or the internet.
“The Irish banking landscape has changed dramatically in recent years and the traditional branch model is no longer the cornerstone of personal banking,” he said.
“We have recognised this and are building a new business model which responds to changing customer needs, leverages our market-leading technology and develops a profitable model and sustainable business for the bank.
“Over the past two years, we have reduced the cost of running our business by 30 per cent, while at the same time continuing to invest heavily in our technology platform as banking habits change.” It maintained in the past 12 months the use of online baking in Ireland has increased by 14 per cent, while the use of automated payments has increased by 16 per cent.
Elsewhere cheque volumes have declined by over 30 per cent since 2005 with only 2 per cent of Irish consumers using cheques more than once a week in 2011.
IBOA is seeking an urgent meeting with the Chief Executive of Danske Bank in Copenhagen, as well as the Danish financial regulator.
The union is also writing to Taoiseach Enda Kenny, Tánaiste Eamon Gilmore and the Minister for Finance Michael Noonan over the jobs crisis in the sector.
PA