The importance of an orderly withdrawal is emphasised in all engagements with Ulster Bank and KBC and both banks are meeting with officials and providing relevant information regarding account closures to the Department of Finance on a monthly basis. This will help to identify any emerging trends and potential issues for consumers.
As advised in a recent response to the Deputy on 7 April, I met with the management of NatWest and Ulster Bank in September 2021 for an update on the progress of its withdrawal and I met with the management of Ulster Bank last month for a further update. Most recently, my officials met with Ulster Bank on 31 March 2022.
I spoke with KBC and Bank of Ireland last spring around the time of the announcement of their proposed transaction and engagement has continued. Most recently, officials met with KBC on 14 April 2022.
The Central Bank expects that all retail banks have plans in place to manage the impact of the broader changes and consolidation in the retail banking sector in Ireland. It is the responsibility of the individual banks to ensure that they are putting their customer first, ensuring fair treatment of customers and that customers understand what the changes mean for them.
This week the Central Bank wrote to the CEOs of the five main retail banks to set out its expectations on some key items related to the account migration process. The purpose of these letters is to reinforce and, to any extent necessary, clarify the application of the expectations set out in the Central Bank's previous letter of June 2021 and to invite the CEOs to a roundtable meeting, hosted by Director General, Financial Conduct, Derville Rowland on the following five key issues/risks:
- Notice periods
- Application of the switching process
- New provider making commercial decisions in a manner that facilitates a customer making and executing a switch
- Direct debit originators and/or other service providers
- Vulnerable customers
In terms of the preparedness of the remaining banks, the Banking and Payments Federation of Ireland (BPFI) has advised that the industry is resourcing up significantly and that over 100,000 accounts have been opened at the three remaining retail banks so far this year. Officials from my Department are engaging with the BPFI on an ongoing basis to ensure that the industry is responding to the challenge appropriately.
Officials are also meeting representatives from other financial service providers that offer current accounts to discuss how they can support customers opening new accounts because of the withdrawal of both Ulster Bank and KBC.
