NIB expansion plan to create 75 jobs
National Irish Bank (NIB) aims to open 15 new branches and create 75 jobs in a €20m expansion over the next three years.
The revamped financial institution launched a range of new banking products aimed at attracting new customers following its takeover by Denmark’s Danske Bank 16 months ago.
The bank’s reputation was damaged following revelations of overcharging of customers and tax-avoidance schemes that emerged in 1998.
Inspectors appointed by the High Court later published a damning report, which led to the departure of senior executives.
However, NIB has spent the last 12 months transferring to Danske’s IT system and is ready to launch an aggressive foray in the the market.
NIB chief executive Andrew Healy said he plans to transform the banking landscape in Ireland by providing more efficient and transparent products for customers.
“Our goal is to become a strong, credible challenger to the established banks in Ireland who have dominated the market for too long.
“We want to bring new thinking to banking and provide a different and compelling alternative, with real subsance to our products and services,” he told a press briefing in Dublin.
Mr Healy remarked that consumers were experiencing inertia, fatigue and cynicism towards the banking sector and NIB wanted to target this group.
“The challenge will be to tackle the inertia out there in the market. ”
The chief executive, who was appointed last summer, aims to expand NIB’s market share to 10% over the next five years while it opens 15 new branches.
“Ten per cent is a reasonable aspiration,” he commented.
Danske Bank agreed to purchase National Irish Bank from the National Australia Bank in December 2004 for £967m (€1.4bn).
NIB currently has 59 branches and 13 business centres around the country. NIB ruled out a takeover of Irish Nationwide.
“We will look at all possibilities, but there is nothing on the table at the moment. We want to grow organically,” Mr Healy said.
NIB today unveiled five new personal banking packages, combining current account, overdraft, credit card and e-banking. Three of these will have no maintenance fees.
There will be the same rates for overdraft and credit cards, ranging from 8.25% to 9.5%. NIB will also pay credit interest rates of up to 1.75% on current accounts.
The bank has also announced savings products aimed at SSIA account holders.
An ECB Tracker Deposit account will pay the ECB rate plus one percentage point, with a minimum opening balance of €5,000.
Regular savings accounts will accrue interest at the ECB rate plus 0.5 points, with instant demand and no minimum deposit.
NIB says its new technology will also enable customers to trade stocks and shares online and there will be a text messaging service for account information.
The bank is also launching a new TV and radio advertising campaign promoting its new products.
NIB will unveil details of competitive new mortgage services next month. ’Mobile finance clinics’ will offer banking advice to consumers at roadshows around the country.
NIB has also introduced a €100 euro ‘Beat The Competition’ challenge to customers of AIB, Bank of Ireland, Ulster Bank, ptsb or Bank of Scotland Ireland if they can show them a personal customer package that offers better value.
Mr Healy called on consumers to switch to NIB to try out its services compared to other banks. He said the rate of switching in Ireland was still 10 times lower than in Danske Bank’s base in Denmark.
