National Irish Bank (NIB) has introduced new personal and business banking packages following a successful move to the technology platform of its parent Danske Bank over the Easter weekend, writes Laura Slattery
NIB said its market-leading credit card, overdraft and mortgage rates would help it snatch market share from the Republic's two biggest banks, AIB and Bank of Ireland, which between them have a 75 per cent share of the current account market.
Chief executive Andrew Healy said the bank remained hopeful that it could achieve a 10 per cent market share over the next five years. This would more than double its current share.
The bank plans to expand its branch network over the next three years, adding 15 new branches as part of a new €20 million investment programme. Mr Healy said Munster would be a key target area for the bank.
Its existing 59 branches and 13 business centres have been divided into five regions: Dublin, midlands, northwest, southwest and southeast.
The bank announced details yesterday of five personal banking packages that combine a current account, overdraft, credit card and online banking.
It is offering to pay customers of AIB, Bank of Ireland, Ulster Bank, Permanent TSB and Bank of Scotland (Ireland) €100 if it cannot prove that its personal banking products offer better value than their current provider.
Three of the NIB packages are free of maintenance fees, while two packages have annual fees of either €75 or €125. Transactions will be free in most circumstances.
Interest on credit cards and overdrafts will be charged at the same rate depending on the package selected and ranges from 8.25 per cent to 9.5 per cent.
Arrangement fees for overdrafts have been removed, while NIB has become the first bank to abolish referral fees, which banks apply when current accounts go overdrawn without permission.
The fee-based packages include credit interest on balances of 1 per cent and 1.75 per cent respectively and travel insurance benefits, which Mr Healy said were worth €150-€450.
In a bid to capture money from maturing Special Saving Incentive Accounts (SSIAs), the bank has launched a new instant access deposit account with an interest rate of 3.5 per cent for balances of €5,000 or more and a regular savings account offering a 3 per cent rate with no minimum balance.
It will also offer access to Danske Capital managed funds for investments lasting five years or more.
NIB said its Danish parent's technology systems would allow customers to buy and sell stocks online.
Over 60 per cent of its mortgage customers have switched to its books from other lenders, according to NIB, which announced earlier this year that it would pay legal fees for mortgage holders switching to its fixed rate loans.
It did not announce any new mortgage products yesterday, but said it would do so in May. Mr Healy indicated these would include mortgage types currently not available in the Republic, such as capped rate mortgages.
