Rural group calls for public community bank to be established

Moate-based Irish Rural Link (IRL) – the national network representing the interest of rural communities - is continuing to call for the establishment of an alternative banking system, despite AIB's u-turn on decision to close cash services in 70 of their branches.

IRL, headed up by Ballycumber native Seamus Boland, still believes that the Government now need to establish an alternative banking system such as a community or public banking model in order to protect communities and SME’s in rural areas.

In a statement, IRL said it believes the matter is far from over and that AIB will looked at its decision again in the near future.

The statement said: "There is currently a review of retail banking taking place and the Government, in its consultation has acknowledged the ECB’s strategy with two of the five strategic objectives being; to support access to cash services for all euro area citizens and businesses; and defining acceptance of cash as essential for the freedom of choice how to pay.

"A community or public banking model would remove the nervousness many customers will now have about the future of the services banks offer. Such a banking model is now necessary for the survival of rural areas. Many people continue to use cash and have not moved to banking online or don’t feel safe using card. Many of these are older people or people on low-income who live from week to week.

"Also for small local businesses in these towns especially shops, restaurants, coffee shops who still have large cash transactions and need to keep coin and small notes, the closure of bank branches and/or limiting services available, adds security and time issues for them. If they need to travel to the next larger town to get coin, this could take an hour or more round trip. This means they may need to close their business during this time if they are on their own. They may reduce the number of trips they do to the bank which will mean holding larger amounts of money in a safe onsite and on their person while travelling to the bank."

"A community banking model would provide cash services to people while supporting SME’s and Micro enterprises to grow and expand their businesses. Such banks would be embedded in the community, building relations and trust between the bank and its customers, something that has been lost over the past few years among the pillar banks."

IRL is now calling on the Government to establish such a banking model to ensure people and SME’s can continue to have accessible banking services.