Mr. Jim O'Keeffe:

I thank the Chairman and members of the committee for the opportunity to meet them today and to allow AIB, along with other representatives of the sector, to discuss what is a transformative development in banking in Ireland. They are providing us with a valuable forum to demonstrate our capacity and readiness to welcome on board customers seeking new financial homes, in the wake of the departure of Ulster Bank and KBC Ireland from the domestic market. I am joined today by my colleague, Mr. Brian Nugent, head of consumer banking. For our part, AIB is disappointed with the departure of these two banks. These exits are prompting sweeping changes that will have far-reaching consequences for the banking sector, customers and the wider economy.

On the one hand, the impending withdrawal of such long-standing institutions will undeniably have a major impact on the operations of the remaining banks. On the other hand, this will also allow us to demonstrate our capacity to incorporate thousands of new customers in an orderly, well-organised manner to ensure continuity of banking services. In this once-in-a-lifetime change to the banking landscape in this country, involving the transfer of 1 million accounts, we will do all that is necessary to ensure that customers of Ulster Bank or KBC who choose to come to AIB have as friction-free and seamless an experience as is possible.

A strong, well-functioning banking system is essential to the lives of households, businesses and individuals. It is especially critical in these times of stress and we deeply appreciate the reverberations of three severe economic shocks - Brexit, Covid and latterly, the war in Ukraine - in our customers’ lives. However, it is perhaps worth recalling the flexibility employed by the bank at the outbreak of the Covid-19 pandemic when, over a very short period, we reshaped our operations on scale to provide almost 80,000 payment breaks and kept our branches open, even as 80% of our colleagues were obliged to work remotely.

Today, the task of managing a smooth and efficient switching programme does not just concern the remaining banking providers and their staff. It also extends to a broad range of critical stakeholders. It involves the exiting banks, Departments, the Central Bank of Ireland, employers, utilities, service providers, insurance companies, and any third party who benefits from the regular transfer of money from a customer account. We must work together with a co-ordinated, planned approach to safeguard against confusion and to streamline the flow of customers into their new providers. With 245 group branch locations and three call centres, AIB Group is already immersed in preparing for the arrival of hundreds of thousands of customers seeking not just to open new accounts, but to begin new financial relationships with the bank.

On that basis, we are allocating appropriately high levels of resources through the redeployment of 300 existing staff and the recruitment and training of an additional 700 temporary staff solely for the task of welcoming new customers. We are also investing major resources in enhancing our digital capabilities to allow customers open new accounts online as part of our leading digital offering. We are especially conscious of the necessity to support vulnerable customers through the change process and we have put in place a dedicated helpline for those who may need extra help opening a bank account with AIB. I can assure the committee that whatever additional resources are necessary will be put in place to talk to and guide vulnerable customers with their switch to AIB.

On any given year, AIB opens 250,000 new accounts. This year alone, we have opened more than 130,000 accounts for customers. These data include non-Ulster Bank and non-KBC customers. We offer two main account opening options. The first is remote via our mobile app. This provides a convenient and efficient means of opening an account that, depending on the complexity of the customer needs, can be completed in approximately 20 minutes. The second is in person at any one of our branches, which takes approximately 60 minutes to complete.

In support of customers in locations where demand is particularly high, we have increased the number of appointments available by offering weekend time scheduling. In tandem with this, we have also adapted our digital account opening process to facilitate greater ease of access for customers. To avoid any unnecessary anxiety, it is important that customers bear in mind that their accounts in their existing bank remain open while they proceed with the establishment of a relationship with the new provider.

The transition of 1 million current and deposit accounts, involving many millions of direct debits and standing orders, is unprecedented. It is a major lift for the sector and disruptive to a large swathe of customers. However, as I mentioned at the start, if all of the stakeholders are part of a coherent plan, we will protect the customer and prove the remaining banks are flexible, robust and organised to convert this challenge into an opportunity.

I thank the members of the committee and I look forward to the discussion.