John Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank the Deputy for his kind remarks. The Minister cannot attend. He was at Dublin Castle today and was present in the Chamber for an earlier debate, but he has had to step out. I am happy to take this matter in his stead.

The issue the Deputy has highlighted about the diminution of services in rural areas is a real one, but he also acknowledged that the State had a 14% share in Bank of Ireland, so the idea that the State can tell it which branches to keep open and closed does not arise. The Deputy correctly referred to the banking sector reducing costs. The major onus for the past eight years has been on trying to have a functioning banking sector, one that is profitable and can stand on its own feet without needing the support of the taxpayer.

I should highlight that, notwithstanding the State's shareholdings in the domestic banks, the Minister for Finance has no direct function in their commercial decisions, including those that form part of the relationship between the banks and their customers. Decisions of this nature are matters for the banks' boards and management. The Minister has responsibility for the banks being run on a commercial, cost-effective, regulated and independent basis so as to ensure their value as assets to the State. Accordingly, it would not be appropriate for the Minister to intervene in actions taken by the banks in matters of this nature.

Relationship frameworks that define the nature of the relationship between the Minister and each of the banks have been specified. These frameworks are available on the website of the Department of Finance. In the case of Bank of Ireland, the State has a 14% minority shareholding. Notwithstanding this, officials in the Department have been provided with briefing material specifically by Bank of Ireland relating to developments in its branch network. I will provide the salient points.

The bank's customers are rapidly changing the way in which they bank - this is similar to the post office network - just as they are changing the way they buy goods or services online and communicate with one another. Only 3% of the bank's customers' total transactions are conducted over the counter, with 97% of all transactions taking place through other channels. Every month, the bank has 8 million interactions with customers via its mobile app and 14 million interactions through the mobile app, online banking and contact centres combined. In addition, the use of credit and debit card and contactless banking continues to grow, with demand for cheques, foreign currency and coin services continuing to reduce significantly.

The bank comments that, when it examines trends over time within a branch's catchment area and sees a consistent decrease in counter activity, it reconfigures the branch to support how customers are using it. This involves moving staff from behind the counter directly onto the floor where they can provide advice and assistance to customers, including in the use of self-service options. The bank advises that this change has been successful in a growing number of branches, where it has seen an increase in transactions happening in the branches through the enhanced availability of self-service options. The bank has highlighted that, in branches where staff move from behind the counter onto the floor, customers will continue to be provided with a comprehensive range of products and services, the ability to lodge and withdraw cash from easy-to-use self-service devices and access to online and phone services. The changes will also enable greater availability of branch staff to provide personalised financial and banking advice.

Foreign currency exchange and coin transaction services will no longer be available in these branches. If customers still require a counter service, the bank will introduce them to the branch of their choice locally.

Bank of Ireland has highlighted its retention of a strong nationwide presence of approximately 250 branches and 16 additional banking outlets. It maintains that it continues to improve its customer offerings and is investing €10 million in the branch network this year. It also maintains that it understands that business and retail customers increasingly require access to 24-seven facilities for lodgement and withdrawal.

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