Mr. Gavin Kelly:

I am grateful for the invitation to address the committee. I am joined by my colleague, Martin McKenna, who is head of operations in the bank in Ireland.

The banking sector in Ireland is currently experiencing a period of unprecedented change, with two banks exiting the market. In regard to this matter, we have ongoing engagement with the Central Bank of Ireland, our representative association, Banking and Payments Federation Ireland, BPFI, and with other banks to ensure consumers are as clear as possible as to the steps they need to take to navigate this change.

In preparation, we have responded with a range of supports to assist consumers seeking to open new bank accounts. This includes 500 additional personnel with roles in account opening and operations teams, contact centre teams and mobile support teams based across the Bank of Ireland branch network. We are also providing step-by-step guides for consumers, a dedicated phone line and an online hub. To further ensure consumers are aware of the range of supports in place, we have also recently commenced a consumer awareness campaign on TV and radio, in print and on social media.

So far this year, Bank of Ireland has opened double the number of personal current accounts when compared with the same period in 2021. We anticipate an ongoing high level of demand for new accounts over the remainder of 2022 and into 2023. Seven in ten accounts are currently being opened via digital channels, and customers also have the option of meeting a branch adviser or calling our account opening team to assist them through the process. We have also recently launched a booking system for both business and personal customers to arrange an appointment with their local branch. We are continuously working to improve our customer experience and customer service. In response to the additional demand already being experienced in our call centres, 100 of the 500 roles outlined earlier will be based in these teams, with more than half already in place.

There will, of course, be some customers who need additional support to change account provider. Our vulnerable customer unit is a centre of expertise within the bank and provides support to customers and their families who find themselves in vulnerable circumstances or situations, including age-related or cognitive impairment, financial abuse, addiction or illness. This unit is currently also supporting displaced Ukrainians who need banking services, including guidance on transferring assets and assistance in opening a basic bank account.

In providing excellent customer service, we also must follow certain legislative and regulatory requirements when opening accounts, for example, to prevent criminality and money laundering. These requirements are in place to protect consumers, the financial system and society as a whole from the negative consequences that can arise from abuse of the financial services system. As a result, any Bank of Ireland representative involved in the account opening process receives formal training across these and other areas to ensure compliance with legislation and regulation. New staff members also spend a period of time shadowing experienced subject matter experts before they are deployed both to ensure compliance and to help them better assist consumers who have queries about the account opening process.

As we look to the second half of 2022, and as the Central Bank mentioned when it was recently before this committee, it will be difficult to predict consumer behaviour during this transitionary period. We are, therefore, carefully monitoring our data for any trends and spikes so we can consider how best to tailor our services. Account switching is not just a simple transaction between the exiting and receiving banks. It involves utility companies, payroll units within businesses, Departments and agencies, such as the Department of Social Protection and the Revenue Commissioners, and many other service providers. Since the implementation of the payment services regulation, direct debit originators, including utility companies and telecommunications providers, are now responsible for updating their customer account details on existing direct debit mandates. This means some direct debit originators will not accept instruction from third parties, such as exiting banks, and will only accept instructions to change bank account details from the customer. The engagement and commitment of the wider business community in Ireland is, therefore, vital to ensure full preparation and minimise consumer inconvenience.

Bank of Ireland has moved swiftly to put a range of supports in place for consumers and will continue to do all it can to make this process as smooth as possible. As a full-service retail bank with a 239-year heritage, we are committed to serving the needs of our customers and the Irish economy for the long term.