Written answers

Tuesday, 28 May 2013

Department of Finance

Banking Sector Issues

Photo of Caoimhghín Ó CaoláinCaoimhghín Ó Caoláin (Cavan-Monaghan, Sinn Fein)
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155. To ask the Minister for Finance the progress made towards the implementation of basic bank accounts here; and if he will make a statement on the matter. [25285/13]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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As part of my Department’s Strategy for Financial Inclusion in Ireland, a basic payment account (named the Standard Bank Account) was offered by three banks (AIB, Bank of Ireland and permanent tsb) in three pilot locations (New Ross, Tallaght and Tullamore) from 29 June 2012. The Financial Inclusion Working Group (FIWG) was tasked with governance of the project. The Standard Bank Account (SBA) Pilot finished on 31 March 2013 after a 9-month pilot period. A total of 205 accounts were opened during the Pilot, which was below expectations. The initial Pilot evaluation suggests that the lower than expected take-up of the SBA was due to the lack of a ‘trigger event’ amongst the target cohort in the pilot locations, such as a requirement to have an income or benefit payment made to a bank account.

I am advised that the report of the FIWG on the Pilot will be submitted for my consideration in a few weeks, following which I expect that the Report will be presented to Government and published. My Department through the Financial Inclusion Working Group will work closely with all stakeholders over the coming months to optimise the availability of the Standard Bank Account nationally. The ultimate aim of the strategy is to ensure that those who were once financially excluded can access all of the benefits of the modern financial system including affordable credit and relevant protection products.

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