The Bank of Ireland has announced it will close half of its 28 branches currently operating in Northern Ireland, as part of a downsizing that will eventually shut down over 100 branches across the island of Ireland.
The branch closures are in response to changes in customer behaviour over the last four years, the bank said. The Covid-19 pandemic has accelerated the move to digital banking services.
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“Our customers are using our branches less and less and we’ve reached a bit of a tipping point,” said Ian McLaughlin, Chief Executive of Bank of Ireland UK.
“Our cash usage and customer visits to the closing branches are down 70% since 2017. Commensurately, our digital banking up 50% over the same period. so, we need to adapt, and we need to change.”
Shifting focus
The closures will not happen before at least 12 weeks. The bank has promised to contact customers individually to notify them about the changes.
The bank also said it would keep at least one branch in each county.
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By GlobalDataThe company will undergo a “material restructure,” that will include simplifying its range of products with a greater focus on car finance and mortgages.
The bank will also continue with its strategy of withdrawing from less profitable lending across the UK. The Dublin-based bank will move its UK head office from London to Belfast.
Covid losses
Some 120 employees will be affected by the branch closure in Northern Ireland. However, “no compulsory redundancies are involved,” said McLaughlin.
The bank said it would work to identify staff who could be redeployed to other roles within the company, as an alternative to redundancy.
The bank’s UK division made a loss of £15m in 2020, compared to a profit of £152m in 2019.
The loss was largely due to impairment charges. This is money which must be set aside to cover loans which may not be repaid in full.
