Michael McGrath (Cork South Central, Fianna Fail)
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4. To ask the Minister for Finance his views on restrictions being placed on bank customers in relation to branch cash lodgements and withdrawals; if the Consumer Protection Code will be reviewed in relation to provision of services in branches; and if he will make a statement on the matter. [40510/15]

Michael McGrath (Cork South Central, Fianna Fail)
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I raise the matter of the changes to in-branch services announced by Bank of Ireland earlier this month, in particular the minimum withdrawal of €700 and the minimum lodgement over the counter of €3,000. The Minister made a statement at the time that he felt the changes were surprising and unnecessary and Bank of Ireland did something of a U-turn. However, the exact position needs to be clarified. Bank of Ireland issued a statement that it wished to confirm that vulnerable customers together with those elderly customers who are not comfortable using self-service channels or other technology solutions will be assisted by branch staff to use the available in-branch services. Can the Minister clarify his understanding of what that means and the assurance he has been given? Will over-the-counter services be retained at existing levels?

Michael Noonan (Limerick City, Fine Gael)
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As the Deputy is aware, I have no statutory role in relation to decisions by financial institutions to alter or amend the range of services provided by regulated entities including in-branch cash lodgements and withdrawals. These are ultimately commercial decisions for the management team and board of each lending institution having due regard to their customers. Notwithstanding this, I have expressed my dissatisfaction in relation to the changes that Bank of Ireland recently announced. I made it clear that I considered these changes surprising and unnecessary. Following this statement, Bank of Ireland has given a commitment that vulnerable customers together with those elderly customers who are not comfortable using self-service channels or other technology solutions will be assisted by branch staff to use the available in-branch services. I expect the bank to honour this commitment fully and work with its customers to ensure that the impact of the changes is minimised.

The Consumer Protection Code was originally introduced in 2006. The purpose of the code is to strengthen protection for consumers by introducing clear rules on the conduct of business for all regulated entities in order to increase the standards of services to consumers. The current version of the code was published in 2012 and contains requirements to protect consumers when changes to services are being made. Provision 3.10 of the code requires at least one month's notice to be given to consumers in such instances. The Central Bank has informed me that one of its key focuses is to ensure that consumers are provided with adequate notice of any changes in service to give them sufficient time to make alternative arrangements. Banks must also provide vulnerable customers with the necessary assistance to deal with service changes. The Central Bank has informed me that it continues to monitor compliance with the code in the context of changing services in the banking sector.

Consumers who are not happy with the manner in which services are provided by the their current financial institution may wish to consider switching to another institution. The Competition and Consumer Protection Commission website, www.consumerhelp.ie, provides a comparison tool to compare various financial products.

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Minister for his reply. To its credit, Bank of Ireland has maintained its branch network nationally. However, if changes like this take hold, the role of the branch will diminish over time. All that will be left in branches will be back-office staff and the role of the branch in rural and local communities will come increasingly under question. I am still not clear as to what the policy of Bank of Ireland is on withdrawals of less than €700 and lodgments of less than €3,000 over the counter. Will a member of staff be available to help a vulnerable or elderly person to use the machine in the branch or will the over-the-counter services be available as normal? Many people prefer to deal with a person rather than a machine and one must question the direction of banking, the model we want to see and the level of customer service we are promoting. It is fine to direct people to ATMs but half of the time, they are out of service. Many of them do not dispense €10 notes. Almost all the time one gets a €50 note if one has that much money in one's account. At minimum, one can withdraw €20. It is not consumer friendly and the Central Bank needs to look at it.

Can the Minister clarify his understanding of the position if an elderly person goes into a branch of Bank of Ireland next month and seeks to withdraw €100? Will that be facilitated?

Michael Noonan (Limerick City, Fine Gael)
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I have no role in directing the day-to-day activities of Bank of Ireland or any other bank. It is making arrangements it announced in a very customer unfriendly way. I said I thought it was unnecessary and an example of poor customer relations. It is also true to say, however, that the industry is changing. We are moving towards a cashless society. Sweden has almost gone fully cashless already. We are moving towards a society which is changing in the way it pays its bills and handles cash. The amounts of cash being handled are changing also. As change takes place, elderly and vulnerable people must be looked after by bank staff.

There is a code of conduct on bank customer relations which dates from 2006 and the Central Bank is the authority monitoring its implementation. It is actively pursuing these issues with Bank of Ireland and others and we have assurances that Bank of Ireland will look after elderly and vulnerable customers. I do not know if that means the girl on the floor will go inside the counter and give out money to an elderly person or whether she will go over to a machine and take the money from there. It is not for me to go in and monitor what is happening on the floor of the bank. Services have to be provided in a way that is helpful and protective of the elderly and vulnerable and they must be happy with their service. The Central Bank will monitor that.

Michael McGrath (Cork South Central, Fianna Fail)
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I thank the Minister for his reply. I have written directly to the Central Bank on the issue and I await a reply from Mr. Bernard Sheridan, the consumer director. I have raised these concerns directly with him because it is principally a matter for the Central Bank. However, we are far from being a cashless society. There are still State services that one must pay for with cash.

The reality is that these changes raise serious security concerns. If they are fully implemented, any undesirable person who observes an elderly person getting cash in a bank branch will know that he or she is coming out the door with at least €700. Such a ridiculous situation would put people at unnecessary risk, which would not be fair or acceptable. I welcomed the statement made by the Minister at the time. There has been somewhat of a row-back by Bank of Ireland, but the exact position is not clear. I appreciate that the Minister is not responsible for running the banks and that this is an issue for the Central Bank which needs to get on top of the issue to ensure customers are being properly supported. These supports might be provided on a temporary basis, notwithstanding the code, but if the policy which requires a minimum withdrawal of €700 remains in place, it will become the norm over a relatively short period of time. That is the concern.

Michael Noonan (Limerick City, Fine Gael)
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It is fair to point out that Bank of Ireland is a private bank that is quoted on the Stock Exchange. The State has a 14% stake in the bank; therefore, it does not have a controlling interest in it. When the bank acted as it did, I issued a statement indicated that what it had done was "surprising and unnecessary". I am glad that the Deputy has written to the Governor of the Central Bank, or to the Central Bank authorities.

Michael McGrath (Cork South Central, Fianna Fail)
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I have.

Michael Noonan (Limerick City, Fine Gael)
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In general terms, I support what the Deputy is doing.