Irish high street bank AIB plans to discontinue cash services at 70 of its branches, a decision that has sparked significant backlash in rural Ireland.
While some view this shift as a move toward digital banking, many critics argue it will leave rural customers without easy access to cash. The announcement was part of a €40 million investment initiative, which also includes an expanded partnership with An Post, the national postal service.
Through the AIB at An Post initiative, customers will still be able to access cash and cheque services at 920 post offices, but 70 bank branches will be repurposed to focus on account opening and digital services. Additionally, the bank aims to hire 500 digital staff by year’s end and introduce an educational program to enhance digital banking learning.
Jim O’Keeffe, AIB’s managing director of retail banking, explained that the reduction of cash services is driven by declining demand and increased reliance on digital options. He noted, “How customers want to bank with us is undergoing a huge transition as digital usage is soaring,” adding that maintaining cash and cheque services in all branches has become “increasingly unsustainable.”
Ireland’s retail banking sector is experiencing significant changes with the departure of Ulster Bank and KBC Ireland, leaving AIB as the bank with the largest network, consisting of 170 branches. This includes a presence in 95% of the areas vacated by Ulster Bank and KBC. Despite this, the withdrawal of cash services has been met with disappointment from rural advocacy groups.
The Irish Creamery Milk Suppliers’ Association (ICMSA) expressed concern over the move. President Pat McCormack stated, “While a lot of transactions are now online, the reality is that cash remains crucial in the rural economy, particularly for small businesses and older generations. The local bank has been essential for accessing cash and handling everyday transactions.” He emphasized the need for AIB to assure the public that this change will not lead to further branch closures.