A record number of new accounts were opened with AIB in the final week of May as customers of departing banks Ulster Bank and KBC Bank looked for alternative arrangements.
The bank said there was a 122 per cent increase in account openings in the week to May 29th as 11,000 customers opened current and deposit accounts with the bank, a record for AIB. That compared with last year’s average of 5,000 a week.
Account openings have increased by 61 per cent in the year to date, the bank said, with a total of 160,000 opened so far this year.
Bank of Ireland and Permanent TSB also reported a surge in account openings, with Bank of Ireland saying its current account applications had reached “unprecedented” volumes, increasing by almost 120 per cent in the week ending May 22nd compared with the same week in 2021. Permanent TSB reported a “sharp” 176 per cent increase in current and deposit account openings compared with this time last year.
Markets in Vienna or Christmas at The Shelbourne? 10 holiday escapes over the festive season
Ciara Mageean: ‘I just felt numb. It wasn’t even sadness, it was just emptiness’
Stealth sackings: why do employers fire staff for minor misdemeanours?
Carl and Gerty Cori: a Nobel Prizewinning husband and wife team
More than a million KBC and Ulster Bank current and deposit account holders will need to find new account providers within the next year, with 470,000 current accounts due to switch as the two banks leave the Republic.
KBC Bank Ireland is set to give customers up to six months to close their current accounts following the receipt of an account closure notification letter, which it will begin issuing this month. It originally set a timeline of 90 days. Ulster Bank began issuing closure notifications with a six-month notice period in April.
The Financial Services Union last month urged the Central Bank to order Ulster Bank and KBC Bank to extend their timelines for leaving the Irish market until the end of 2023 to give customers enough time to set up accounts at a new bank. Its call came amid concern for the wellbeing and welfare of banking staff as workloads intensify.
AIB said it has seen a consistent upwards trend in account openings in the past 10 weeks and that some 70 per cent of new customers can open accounts via AIB’s online channels.
The bank has also trained up to 700 temporary staff and redeployed staff to branches to provide support to customers.
“The changes in the banking market represent a huge opportunity for AIB to welcome hundreds of thousands of new customers and we are working to ensure they have as seamless an experience as possible,” said AIB managing director of retail banking Jim O’Keeffe.
Bank of Ireland also said 70 per cent of accounts were being opened online. It said it was working to increase the number of staff dedicated to deal with the surge in account opening by 50 to 550 people, with the additional 50 roles set to double its “branch mobile support squad”.
“We’re seeing unprecedented account openings, with the volume higher than any record previously seen. At the end of April, we reported an 80 per cent increase on the same period last year and this figure is now almost 120 per cent,” said Henry Dummer, director of everyday banking at Bank of Ireland.
“We are recruiting, training and onboarding personnel on a continuous basis to handle increasing volume. We are opening more accounts than ever in our history, but we do anticipate increasing pressure over the rest of 2022 and into 2023 so we are encouraging customers not to leave this until the last minute.”
Permanent TSB said its staff have begun attending in about 50 per cent of Ulster Bank’s branches around the country to provide advice to customers who need to switch.
“We are noticing strong demand for our online services, through which customers can open a current account online, and for appointments in branches for customers who want specific supports to make the move,” said Permanent TSB retail banking director Patrick Farrell.
Over the past few weeks, the level of activity has “increased significantly”, he said.
