Reprieve for two Mayo towns as AIB performs U-turn on 'cashless' plan

AIB has performed a U-turn on its decision to end cash services at 70 branches around the country.

The move follows a public and political outcry to the move from Oireachtas members, community groups and farming and rural interests.

Two Mayo branches - Ballinrobe and Claremorris - had been earmarked for downgrading as part of the controversial plan.

In a statement, the bank said that recognising the customer and public unease that it has caused, it had decided not to proceed with the proposed changes.

A statement by the band said the original decision to remove the cash services was taken in the context of the evolving banking environment and the opportunity to enhance its long-standing relationship with And Post.

"In recent years there has been a dramatic increase in the use of digital banking services and a decline in branch visits and cash usage," the statement read.

"In AIB's case, there are 2.9 million daily digital interactions compared with 35,000 customer branch visits.

"There has been a 36% decline in cash withdrawals from ATMs and a 50% fall in cheque usage over the past five years."

Welcoming the decision, Mayo TD Alan Dillon said: "This is very welcome news.

"I note the significant public reaction in Mayo to AIB’s announcement earlier this week and I welcome the bank’s decision not to proceed with the proposed changes to customer services in certain branches.

"Earlier this week I called on AIB to reverse its decision to turn a further 70 of its branches cashless and I welcome there statement today.

"For towns like Ballinrobe and Claremorris, it is crucially important that cash, cheque an ATM services are maintained.

"Local banks like AIB have a key role in maintaining the flow of cash through our rural economy and ensuring appropriate access to retail banking services for all including the vulnerable and elderly.

“Already we have seen a shrinking of bank services in Mayo with Bank of Ireland closures last year in Ballyhaunis, Charlestown and Kiltimagh along with Ulster Bank announcing it will remove all its services, and the proposed move by AIB would have been devastating to these rural towns.”

Giving his reaction, Deputy Dara Calleary said: “This decision, taken abruptly and without warning, would have had a detrimental affect on Mayo and other rural counties and communities.

"Small businesses, elderly and vulnerable customers of AIB are feeling very hurt, annoyed and let down by this bolt from the blue decision to remove cash services.

"It would have been a huge blow to our communities and would have left east and south Mayo very short of cash services following the withdrawal of Bank of Ireland from many towns last year.

“I am satisfied that the decision has been reversed after considerable pressure was applied to AIB but the whole saga brings into sharp focus the need for us to keep a very close eye on banking movements and plans and also to support our Post Offices and Credit Unions who are providing the services that local communities desire and need."

Deputy Rose Conway-Walsh stated: "“I wholeheartedly welcome the announcement that the planned downgrading of services at 70 branches has been scrapped.

“It shows that these types of decisions can be stopped when people stand up for their communities and challenge decision like this.

“There will be a sense of relief that this is not going ahead. However, people in rural area will again feel like an afterthought.

“We need to know when the government was informed of these plans and why it again took public outcry and people power to get it reversed.

“It should never have even got this far as the government should ensure that banks are fully aware of their responsibility to maintain appropriate access to banking services for all in society, particularly in rural areas.

“Only last October 88 Bank of Ireland branches were allowed to close including Ballyhaunis, Charlestown and Kiltimagh.

“That was a huge blow to rural community. We have also seen individual branch closure in recent times such as the AIB in Belmullet.

“There is a constant erosion of services in rural towns and villages that needs to be addressed."