Mr. John O'Connell:

I thank the Chairman for the invitation to attend and contribute to the committee's deliberations on the imminent exits of Ulster Bank and KBC from the Irish retail banking market. We represent staff who supported customers throughout Covid and went to work each day providing a professional customer service in very challenging circumstances. Staff who show loyalty and dedication to their job on a daily basis are now been asked to shoulder the burden of decisions made by others to reduce customer services, cut staff numbers and, in the words of each of the banks, condense their call centre opening times, which is all being done to force customers to move to digital platforms. We see ourselves and, more importantly, our members as key stakeholders in the finance sector.

The exit of Ulster Bank and KBC is the biggest logistical event to occur in the sector since the introduction of the euro. It was clear from the outset that a change this seismic would require the setting of realistic timelines for completion, extra resources and staff to cope with the additional workload and the collaboration of all relevant stakeholders to ensure there is a transparent and co-ordinated approach to problem-solving. It is a pity the banks did not adopt this approach from the start. Banks take a very blunt approach to change and we stressed in all our meetings with them and other stakeholders that appropriate time, resources and transparency must be dedicated to this issue for a successful outcome and to gain the trust of the public. The important issue of staff well-being and welfare had to be central in any decision-making process.

All the main retail banks have reduced their headcount during the past 12 to 18 months. They have reduced customer services through branch closures, the removal of ATMs from local communities and reduced opening hours in their call centres. This was all done with the knowledge that Ulster Bank and KBC would be exiting the sector.

The Financial Services Union expressed serious concern about staffing numbers as all reports and indications for some time have pointed to long waiting times for customers and staff shortages in branches and call centres. Our concerns were ignored as issues such as the removal of the pay cap for senior management was prioritised by the banks and their lobby group, the Banking and Payments Federation Ireland, BPFI. It does not take much understanding of the sector to know the exit of two main retail banks would overload an already creaking system unless proper, detailed planning was undertaken and implemented prior to the exiting banks taking the decision to set timelines for customers to move.

Ulster Bank was aware when announcing the six-month deadline that the leaving banks were not ready to deal with the exits and the leaving banks knew despite their public utterances that they were not ready to cope with the additional workload. This was confirmed last week by the receiving banks and also by the Central Bank on a number of occasions, one as recently as in its roundtable discussions with the CEOs of the main retail banks.

We have growing concerns for the health and safety of staff faced every day now with customers frustrated because they cannot open accounts on demand and dealing on the phone with customers still experiencing long waits who are equally frustrated. This is against a background of the Irish Banking Culture Board's independent staff surveys showing staff suffering stress in two successive surveys. In such circumstances, staff resilience is waning and hence our serious concern for staff, particularly from a mental health perspective.

On foot of our concerns, we employed an independent polling company, Ireland Thinks, to survey our members on staffing levels in their branch or department and how it is affecting customers services and their own well-being. The results are stark and expose the reality. We are launching the survey results today, Wednesday, and ask that urgent action be taken to respond to the growing concerns of staff and customers. The survey results indicate that 88% of respondents feel stressed at work, either on a regular or very regular basis; 73% feel their workload has increased due to the exits of Ulster Bank and KBC; and 87% of respondents feel their department or branch is not adequately staffed. This figure rises to more than 90% in both AIB and Bank of Ireland. When asked what arrangements are in place when a branch is short-staffed, the predominant answer in an open-ended question was none. Some 87% of respondents feel staffing difficulties have led at some point to bad customer service. When asked are staff shortages impacting their personal life, 80% of respondents replied that staff shortages are either greatly or somewhat impacting their personal lives. These results should not be tolerated in any sector but when the State is a shareholder and the sector is regulated by the Central Bank, these results should act as an urgent call to action for both.

We welcome the recent intervention of the Central Bank as the regulator in calling in the banks' CEOs and impressing on them the need to provide additional resources and to work in an inclusive manner with all relevant stakeholders.

A number of actions would give a basis for some hope that, working together, we can manage the exit of Ulster Bank and KBC in a manner that will not aversely affect staff and customers. The actions would include but would be not limited to: a task force to be convened by the regulator to co-ordinate the agreed implementation plan; a transparent process where stakeholders can see how many accounts have been closed and switched on a weekly basis; a detailed plan in respect of staff recruitment; the setting up of a dedicated desk in each branch to deal with customers looking to switch accounts or open new accounts due to the exit of both banks; banks to publish training plans and statistics for new staff and for upskilling existing staff; a reversal of the opening hours curtailment for all bank call centres; a stop to any plans for banks to move to cashless branches over the next two years; a comprehensive communication plan for customers; and a commitment by Ulster Bank and KBC to keep the existing branches open until at least the end of 2023. Despite the good work being done by the culture board, the recent survey undertaken by Behaviour & Attitudes on behalf of the Department of Finance shows that 58% of respondents feel that culture in the banks has either not changed, disimproved a little or disimproved a lot since the financial crisis. This clearly shows that an urgent change in thinking, followed by actions, is required across the sector.

The FSU launched a policy document at the recent banking review round table held in Tullamore. The document is our input to the ongoing discussion on the future of banking. The imminent departure of Ulster Bank and KBC and the arrival of new digital platforms, taken together with hundreds of branch closures, removal of ATMs from local communities and ongoing reduction of staff across the main retail banks, show a real need for the sector to actively plan for the future. A better and more innovative approach is required that involves all relevant stakeholders. We need to build a stakeholder banking model like what works successfully across a number of European countries. This requires new thinking from the banks and a willingness to change. Better and more inclusive governance, with the inclusion of worker directors and a consumer advocate on the board of each of the retail banks, would put the interests of consumers and staff at the centre of decision-making. If this was in place now a consumer and staff voice would have been articulated, which may have helped us to avoid the issues we are all experiencing. We can achieve an orderly exit of Ulster Bank and KBC. FSU is committed to that but banks must adopt an inclusive and progressive approach, work with stakeholders and show a genuine appreciation of the concerns of staff and customers.