AIB has restructured its retail banking operations in Ireland telling staff the initiative is part of a transformation in terms of "getting it right" for the customer writes Siobhán Creaton, Finance Correspondent.
The unit's chief executive, Mr Donal Forde, told staff that the changes, which will come into effect in January, will reduce errors and rework, simplify its product range and streamline its processes.
AIB's retail banking operations have been at the centre of investigations into the overcharging of customers on certain foreign exchange transactions over an eight-year period.
In a memo to staff, Mr Forde said he recognised that the changes were coming on the back of a very tough and demanding year. "Once again we are now faced with a busy time between this and year-end if we are to implement the necessary changes and hit the ground running in January," he said.
Mr Michael O'Farrell, the head of AIB's finance and leasing activities, is to take over as head of retail banking replacing Mr John Hickey, who is leaving AIB in January to begin a new career at FEXCO Ireland.
The bank has also assigned responsiblity for human resources in this division to Mr Maurice Crowley, who had previously worked at the bank's US operations in Baltimore, Maryland. He will become a member of the bank's management team and will oversee the re-organisation.
The Group head of human resources, Mr Mike Lewis, will maintain overall responsiblity for human resources functions across the group.
AIB will create two new business units, a product management and e-channel development unit, and an operations unit. The new product management unit will be led by Mr Billy Andrews and will be responsible for the "integrity, profitability and performance" of its products, according to the memo. It will also be responsible for produce compliance and pricing.
These responsiblities previously lay with the stategic development unit which first discovered that the bank had notified the incorrect rate of commission charged on non-cash foreign exchange transactions to the regulator.
The bank had sought approval to charge a rate of 0.5 of a percentage point but was charging customers a one percentage point rate. It is now repaying customers who were charged the wrong commission.
Up to 10 senior AIB executives could be facing disciplinary proceedings following the findings of an investigation into the bank's overcharging of customer on certain foreign exchange transactions.
A sub-committee of the board of directors has recently written to these individuals about the findings and has been empowered to consider the need for any appropriate disciplinary proceedings.
It will report its actions to the Irish Financial Services Regulatory Authority. It has said it will issue its report on the matter by year-end.
