Joe McHugh (Donegal North East, Fine Gael) | Oireachtas source

The Strategy for Financial Inclusion, which is being led by the Department of Finance, called for the nationwide launch of a standard bank account as a first step in promoting financial inclusion. A pilot project for a standard bank account was completed in March 2013 after a nine-month pilot period. A total of 205 accounts were opened during the pilot. The report of the working group on the pilot project noted a number of reasons for the low level of take-up, including the view of stakeholders that one of the key elements required as part of the preparations for a successful national roll-out of a standard bank account is greater involvement by An Post and the credit unions.

The Department of Finance is currently transposing the payment accounts directive, which requires that all consumers legally resident in the EU must have access to a payment account with basic features, regardless of their financial circumstances. The directive must be transposed by September 2016 and the Department of Finance is considering how to make progress on this issue in light of the experience of the standard bank account pilot project.

The initial report of the post office network business development group was presented to the Minister in May 2015. The report identified the provision of financial services, including those for the unbanked, as fundamental to the future viability of the post office network. There are several advantages in offering basic banking services through the post office network, including the trust factor and the community focus of the network. Successfully aligning these advantages with the provision of suitable basic banking products has the capacity both to support financial inclusion and enhance the role of the post office network.

While it is too early to indicate the contents of the final report, financial services will be an important component of it. I expect the final report to be submitted to the Minister later in the autumn.

See this speech in context