Time to find real alternatives to commercial banks
Editorial comment
The controversial decision by AIB to turn 70 banks cashless and the subsequent u-turn has raise a whole raft of issues of significant public interest.
Firstly, it is clear that the seemingly relentless move by banks to leave behind customers who do not use digital banking services or who have business or personal requirements to deal in cash and coin shows no sign of relenting.
Although AIB did reverse its plans, it was a significant insight into the prevailing attitudes of pillar banks to a large cohort of its customers.
Of course, the issue is complicated by the fact that the Government has a 63% shareholding in AIB.
That the main shareholder would not be consulted on such a decision is staggering although it appears now that Department of Finance officials were aware four days in advance of the initial AIB announcement but did not inform relevant Government Ministers.
The fact that AIB was bailed out of its own mess by the taxpayers of this country means there is understandable anger when the bank acts in way that is seen as contrary to the public interest. However, eaten bread is soon forgotten.
The issue has also highlighted the importance of the credit union movement to people once more. Many credit unions are widening their banking services. They are community-based and run and provide a clear alternative to the purely profit-driven antics of commercial banks.
AIB had proposed to expand and strengthen its partnership with the post office network to allow people to continue to lodge and withdraw cash from their AIB accounts at post offices.
This element of the controversy was somewhat overshadowed and it is important to note that the post office network can be part of any new model of banking.
The concept of public or community banks has also been raised by some commentators and groups. These run hugely successfully in parts of Germany among other locations and are a key plank of Green Party banking policy.
This would involve a locally focused bank with a public mandate to serve the community in its region by providing finance and other modern banking services.
The main banks are seemingly hellbent on making themselves more and more irrelevant. We should take the hint and work to provide real alternatives to the commercial banks.