Following a major political backlash, Allied Irish Banks (AIBG.I) on Friday, 22 July, 2022 shelved plans to drop cash services in 70 of its 170 branches. The decision was based on reaction over its likely impact on small businesses and rural communities, according to Reuters.
The bank, which is 63% owned by the government and is the country’s largest mortgage lender, announced the plan on Tuesday, 19 July, 2022 saying that the cost of providing cash services was becoming “increasingly unsustainable”.
But it reversed course after days of sustained criticism from politicians and small business owners, which culminated in Prime Minister Micheal Martin calling on the bank to “reflect on” its decision.
“Recognising the customer and public unease that this has caused, AIB has decided not to proceed with the proposed changes,” the bank said in a statement.
Finance Minister Paschal Donohoe, who is gradually reducing the state’s stake in the bank, welcomed the move, saying banks have a “key role in… ensuring appropriate access to retail banking services for all in society, including the vulnerable.”
IFA Farm Business National Chair Rose Mary McDonagh commented: “There is huge financial pressure, uncertainty and worry among farmers at the minute. Farmers need to know that their financial provider is there for them when needed and that they have a range of low-cost finance options to meet their personal and business financial needs.”