The news that Bank of Ireland is to axe 2,100 jobs as part of a restructuring programme has led to accusations that the cuts will compromise customer services.
"Job cuts of this scale cannot but affect the quality of services offered by the bank, both in terms of type of services offered and, more significantly, their geographical spread," Green Party spokesman for Finance Dan Boyle commented.
For Brendan Howlin, Labour Party spokesman for Enterprise, Trade and Employment, the announcement reinforces the public perception that Irish banks are putting commercial greed before customer interests.
"Increasingly customers will conduct their banking with faceless individuals down a telephone line rather than enjoy face-to-face interaction with staff about their finances," he said.
Bank of Ireland said yesterday that about 500 of its staff will be redeployed from back-office to front-office functions, implying that the level of service in its branches will actually improve.
However, 10 branches are to close under the €120 million cost-cutting campaign. Bank of Ireland said many of these closures would be the result of the amalgamation of branches situated close to one another. It has not said where the branches earmarked for closure are located.
Bank of Ireland currently has 261 branches in the Republic and 44 in Northern Ireland. Its main rival, AIB, has a network of 280 branches in the Republic and 60 in Northern Ireland.
Beyond branch closures, it is difficult to say how the widespread job cuts at Bank of Ireland will affect customers. The bank is, however, promising more automation and seeking higher productivity from staff. There will be no changes to opening hours, according to a spokesman.
By contrast, Bank of Scotland Ireland (BOSI) has said it will remain open for business six days a week when the first of the 52 ESB shops it acquired last week rebrands and opens its doors as a BOSI branch in November. And Danske Bank, the Danish financial institution in the process of buying NIB, is known for its early morning starts.
As for the "faceless individuals down a telephone line", there will be fewer of these too.
The 22 call centres Bank of Ireland operates will be streamlined and amalgamated into just four, facilitating centralised decision-making on credit applications. Some services will be outsourced but it is not yet clear which ones.
The job cuts at the bank are the central plank of a strategy designed to enhance the bank's competitiveness. This strategy may result in lower charges for the bank's loyal customers. But many fear it is more likely to enhance profits, rewarding shareholders and senior management.
