Ulster Bank is giving customers six months to close their accounts in 2022 before withdrawing from the Irish market.
he bank invited its competitors to a meeting today to outline its plans to scale down its business and migrate services to other providers.
He wants customers to quickly move their businesses elsewhere to avoid account opening bottlenecks that could leave them without access to basic banking services.
Ulster Bank also writes to the main companies which direct debits to its customers to inform them of plans and prepare them for the exodus of customers.
“The aim of this commitment is to provide recipient financial service providers with as much information as possible at this stage, given the expected increase in activity in the sector,” said a spokesperson for the sector. ‘Ulster Bank in a statement.
âWhile customers don’t need to take any action now, Ulster Bank will give customers up to six months notice, starting in early 2022, but we strongly encourage customers not to let it. until the last minute to avoid possible bottlenecks in the activity of opening an account. in the second half of 2022.
Financial services companies, including rival banks and alternative providers, were invited to the meeting, which included details on how Ulster Bank would communicate its ‘move and close’ plans to clients l ‘next year.
The bank is also encouraging customers who need help with transferring their accounts to get in touch now or in early 2022.
Ulster Bank’s UK owner NatWest confirmed in February that he plans to exit the Irish market following a strategic review of the business he started in September 2020.
The bank, which suffered catastrophic losses during the financial crisis, had only made marginal profits in Ireland while tying up billions of costly capital for its parent company, prompting CEO Alison Rose to pull the plug.
Ulster Bank began closing in July as part of its phase-out, pulling some products and services from the market in preparation for closing next year.
Business banking was immediately hit with no new customers accepted after July 30, with retail customers following on October 29, with a few exceptions.
In June, AIB confirmed the acquisition of Ulster Bank’s â¬ 4.2 billion corporate banking portfolio as part of its bank overhaul by CEO Colin Hunt, which also includes the acquisition of Goodbody stockbroker and an insurance joint venture with Canada Life / Great West.
In July, Permanent TSB signed a memorandum of understanding with NatWest to transfer over â¬ 7 billion in mortgage and SME loans from Ulster Bank – with 25 branches – as part of an agreement which could increase PTSB’s revenue by 50%.
KBC Bank Ireland, which is also pulling out of the market, told an Oireachtas committee this week that it would not transfer all of its mortgages to Bank of Ireland until the fourth quarter of next year.
The Belgian bank confirmed in October that it would sell its performing mortgage portfolio of 8.8 billion euros and deliver 4.4 billion euros of deposits to the Bank of Ireland in a 5 billion deal. ‘euros.