Lisa Chambers (Fianna Fail) | Oireachtas source

Banking in Ireland is changing at a rapid rate. The pandemic has accelerated that pace of change. People of all ages, from the personal user to the large commercial customer, are banking online. The banks are responding to this change, understandably, but the impact on customers is already evident. A reduction in face-to-face service and less competition for products like business loans and mortgages are really concerning customers because they wonder about the future of the banking sector in their country. The State must act and not just react. We need to try to get ahead of these changes and assess the impact on citizens so we can protect people while ensuring a functioning banking sector for our country. This is vital for our economy to grow and for people to be able to access the financial products and services they need.

The retail financial services sector is undergoing major change at this time. In the past two months we have seen several major announcements, including the withdrawal of Ulster Bank, the potential withdrawal of KBC Bank Ireland and the forthcoming closure of a large number of branches by Bank of Ireland and a smaller number by AIB. Branch closures are a real concern for many communities, which are finding the pace of change unnerving and unsettling. People are worried for the future of their communities and what this means in the bigger picture for small towns across Ireland. Without basic services in towns, footfall decreases and other businesses are impacted, so the public are looking for leadership in this space and a clear plan for reimagining community banking across the country.

The announcement of Bank of Ireland's partnership with An Post is welcome. The fact that Bank of Ireland customers will be able to access services while the post office network is maintained is a really positive step forward. It shows us that the debate we have been having recently on protecting the post office network is a vital one to have because that network, which has been in place for many years, could now provide us with one of the solutions we need to deal with the crisis in our banking sector. We need a sector that offers customers choice and we need competition to make sure that people get the products and services they need but at a fair and reasonable price. We must therefore manage the fallout from these decisions and build a sector that delivers for our people, is diverse, modern and progressive, moves with the times and deals with the technological changes but at the same time provides to people a customer service that is not all about machines with no personal interaction any more.

As to what is concerning people, I do not think it is just about the loss of the physical premises in their towns or the fact that they will have to travel that little bit further. Change makes people unsettled and upsets them, particularly when they do not know what is replacing what. What we have to do for our citizens is provide reassurance that we know that change is happening and that the pace is much faster than we had anticipated but that as a Government we will put a plan in place to make sure that people are protected, that they will still have access to financial services into the future and that we will protect the existing financial networks in order that people will have access to services as close to home as is possible, taking into account that many people - not everybody - are moving online and that some people will do most of their banking online but still want the option to meet a bank manager or bank worker if they need to talk to somebody face to face. It is about providing that balance and understanding that people are not against change as such or against embracing technology. It is fear of the unknown that is upsetting people. So much change in such a short time is making people really nervous. People are also worried about the bigger picture: the impact on their towns, villages and the areas in which they live and what this means for local services.This is just one of many changes that people, especially those in rural Ireland, are grappling with. Again, it is the concern around whether our towns will still be the way they are now in ten and 20 years or if sons and daughters will want to live there or if they will have to go elsewhere. Will we be able to attract new people into our towns and villages if we are not providing basic services? These bigger-picture issues are really on people's minds when they see these announcements, and so many of them in such a short space of time.

People are also worried about the cost of financial products. People are very worried about business lending. Effectively, Ireland is down almost to a duopoly for business lending and people are asking what this means for small and medium enterprises. This is where the credit unions and post offices can really step in to provide that much needed competition. Citizens are worried about the cost of mortgages. For quite some time we have been discussing the need to have increased competition to bring down those interest rates, yet we see banks pulling out.

When considering the housing crisis, first-time buyers who are saving right now are concerned about whether they will get a mortgage in five years' time. People fear that the cost of borrowing for personal loans will increase also. We fear that our banking sector is not operating at the level it needs to be operating at in terms of efficiency, customer service and providing value for money people want. It is about bigger picture stuff and what it means for people day to day.

My colleague Senator Casey referred to the face-to-face interaction. We do not want to get to a situation where all of the time we are dealing just with machines. If we need to discuss the grey areas in finance that are not always black and white we still want to have the person to talk with face to face, which is a flexibility and discretion that is really valued.