EBS May Exit Savings & Current Account Products

JTMan

EBS may stop offering current accounts and savings accounts.

Irish Times report here: https://www.irishtimes.com/business/financial-services/ebs-considers-pulling-back-from-savings-products-to-focus-on-mortgages-1.4780661?utm_source=dlvr.it&utm_medium=twitter

RTE report here: https://www.rte.ie/news/business/2022/0119/1274552-ebs-starts-review/

More bad news for competition in the Irish banking market.

iBaxter

I wouldnt be surprised at all about this as they seem to be running down their services.. I recently wanted to update an old EBS Money Manager Account which I hadnt used for a few years, I just wanted to get a new bank card and have internet banking on it. WOW what a process to go through. It involved a lot of different hurdles to jump including calling into their branch office, ordering a card, getting a Personal Access Code , a PIN code and a one time activation code, all by Post, and in order to activate these codes you had to ring their Freephone number , which took a minimum of 1 hour to answer. To be fair I find the EBS staff to be very helpful, but BY God whoever designed their online banking protocols needs simplify this process, which took about 3 weeks to get up and running. AND the EBS online banking site isnt exactly state of the art, its cumbersome and not very user friendly, and particularly difficult to use on a mobile phone.

L1011

They've been doing a branch network build-out, often in areas with existing AIB branches, so this both seems a bit odd and/or an indication of some strange management decisions.

Jim2007

https://www.boards.ie/discussion/2058228901/ebs-may-exit-savings-current-account-products

Too much competition is what got us here. Competition turned in to a race for the bottom and as players exit the market and the industry restructures the consumers will pay the price in the end.

Saudades

Is this a reaction to Ulster and KBC's withdrawal in that EBS don't want to take on 1000's of new accounts?

Ulster Bank have half a million current accounts here, most of which will be looking to switch in the next few months.

Jim2007

https://www.boards.ie/discussion/comment/118506709#Comment_118506709

KBC and UB are leaving because they can't make sufficient profits out of their customers. Why would any business want to take on loss making customers? Sometimes more is not better, it's just more. I have it said it else where - people would be well advised to get their affairs sorted out early rather than towards the end because some people may find it difficult to get the facilities the want as the banks may become selective about who they take on.

JTMan

https://www.boards.ie/discussion/comment/118506709#Comment_118506709

The decision is being driven by AIB (EBS's parent) having too much deposits.

AIB are also examining EBS's future. The Irish Times imply that EBS might focus on mortgages only. But surely there is no need for such an extensive EBS branch network anymore to support mortgages. I wonder if EBS might turn into an online only mortgage brand.

So not really driven by KBC's and Ulster Bank's moves but AIB might have decided to advance flag this to help prevent EBS getting a flood of deposits and then having return the deposits shortly thereafter.

Strumms

I’m an EBS client for 25 years.. always loved their service… but for about the last 6 years…. in person banking seriously understaffed in the two city center locations I’d use, often one staff member behind a desk in their busy… their online banking is seriously user unfriendly.

billyhead

Just to clarify what does this all mean for current deposit customers? Are they planning to become a mortgage only institution? So anyone without a mortgage will have to move elsewhere? FFS.

JTMan

https://www.boards.ie/discussion/comment/118507872#Comment_118507872

Means nothing for now until the review is finished. But hard to see how EBS will continue to collect lost making deposits. Current account customers will most likely need to find a new home in the near future.

jj880

Theyve just took me on from UB for a current account. Ffs.

Jim2007

https://www.boards.ie/discussion/comment/118507872#Comment_118507872

At this point there is no way of telling how the banking screen will look in Europe in say 10 to 15 years. Neither bricks and mortar nor digital banks are profitable right now, the race to the bottom is in its final stages with banks exiting markets, major players in merger discussions etc… There is probably room for maybe 20 tier 1 and twice as many tier 2 banks in Europe so that means more will go, some will be shell or name plates etc.

The only think I feel confident about is that when the dust settles we’ll be paying significantly more for financial services.

JTMan

https://www.boards.ie/discussion/comment/118509272#Comment_118509272

Curious question. Is there any major evidence of big mergers thus far? Granted there is plenty of Irish evidence of market exits but what about the mergers that you mention?

Jim2007

https://www.boards.ie/discussion/comment/118514604#Comment_118514604

I need to be careful on what I say about actual merger talks.... so lets say the confirmed discussions are DB, CS & UBS, their board's comments have been vague on who the counter parties are. If you look at the digital banking sector, most are all reporting losses so it is only a matter of time for a shake up happen there as well.

Szero

In terms of the direction of Irish retail banking ..

- KBC will exit

- Ulster wil exit

- EBS will exit. Branches will close. Operate as mortgage brand only.

- Credit Unions will continue to close and consolidate.

- Shakey ground: An Post current account product. Surely loss making?

- AIB & BoI will continue to close branches and move bit by bit online only.

- PTSB buying 20 legacy branches from Ulster (madness on steroids). Only a matter of time till they are the error of their ways and start closing branches again.

- Revolut will continue to grow. Their digital offering is mighty years ahead.

- Non bank operators, such as Avant and ICS, with a much lower cost base, will surely continue to grow.

- Will a big European bank try to acquire AIB or BOI or PTSB? Maybe eventually once state holdings are sold. BOI might be first on the block.

jj880

Jesis thats a grim outlook.

Can you really bank with just a revolut card?

I have 1 but theres no way I would be comfortable to give up my current account. At least not for a few years yet. At the moment with Revolut i find it impossible to get any kind of support if anything goes wrong.

Amik

I'm with UB and need to move soon.

UB, KBC, and maybe EBS leaving, what is my best option for a current account at the moment?

I also read recently that N26's US expansion didn't go well. They worth moving to here?

JTMan

https://www.boards.ie/discussion/comment/118524269#Comment_118524269

N26 have a waiting list to open an account.

AIB have a 3 month wait to open an account.

Unless you can wait ages ... Your options are Revolut or Bunq or BoI or PTSB or An Post Money or CurrentAccount.ie. Revolut is free but no branches. PTSB is 6 euro but you get cashback up to 5 euro for debit card usage. Bunq is relatively expensive.

Amik

https://www.boards.ie/discussion/comment/118526778#Comment_118526778

Thanks JTMan! A few on your list I didn't know about (Bunq and Currentaccount.ie). I'll read up on all the options.

With SEPA, can I open a current account at a bank in another EU country (for example, in Germany) to receive my salary and do banking? I think I read you don't need to be a resident.

Citrus_8

You can open a current account from home. Both, Permanent TSB, and AIB offer it through their app. Didn't try BOI though. AIB generally is more expensive as you pay 4.50 for a quarter plus 20c for each chip & pin, DD, SO or any online transaction, transfer and purchase. ATM is 35c.

BOI and PTSB are both 6 Euro a month and the above daily stuff is already included in this charge so no additional fees. PTSB offsets the charge (up to 5 Euro) giving 10c for each bank card use in shop (either contactless or chip & pin) and online purchase. Can also reward for DD with some partners if you're their customer (I think, Sky and Airtricity).

I've tried to open an account via PTSB app but failed due to too dark or too bright photos. I used all allowed attempts and it said I have to book an appointment in branch which I did. But the agent on phone made a mistake and booked me for a wrong time when branch was closed. Second time I walked they apologised as the person I had an appointment with was off and they didn't bother to let me know, they even didn't reschedule. I had to ask myself to get that done. Third time they sorted it for me but took 30 boring minutes in branch. It took a week to get a bank card too. In total everything took around a month and a half (consider Christmas time in between).

I also tried AIB app to open an account as I lost my patience at some point with PTSB failures. AIB app failed as it said I have an account with them (actually I don't, but I had long time ago; when I called AIB, they confirmed this is only for completely new customers but not returning ones). That was the reason I still decided to go with PTSB as they seem to be the cheapest and they waiting times to open an account was shorter.

Now I feel being knocked 3-5 years back. KBC app is way better than a poor old-school PTSB which is very limited and definitely not designed for today's banking. It's just stuck somewhere in the past. The most is what I hate that there's no finger print to access the app - have to play this silly children's game by entering some digits from a number with series of 6 digits. App design is also very outdated and poor. I also see that transactions reaching PTSB account slower than KBC account.

I heard people say UB app was the best in the Irish bank market. KBC was very good at customer service (long opening hours), especially chat. I will miss KBC. Irish banks don't provide such a good service, very sad and disappointing... Will be looking forward to the government selling its shares with AIB, PTSB and BOI (current talks are mainly about BOI and AIB). Hopefully, privatised, these banks could offer a better service even if that would mean merging with some of the bigger European banks.

CrabRevolution

https://www.boards.ie/discussion/comment/118526778#Comment_118526778

Where's the 3 month waiting period for AIB coming from?

As an Ulster Bank refugee I opened an AIB account current online just a month ago and it only took a few days between proving my address and getting the debit card etc. Once I had the app set up I set up a savings account in no time.

Hibernicis

https://www.boards.ie/discussion/comment/118528380#Comment_118528380

BOI allow online application for Current and Deposit accounts and Credit Cards and the process is actually very straightforward. I had no difficulty with it.

In terms of the Apps, UB is streets ahead with AIB in second place. BOI a weak third and PTSB hobbling along far far behind.

Hibernicis

https://www.boards.ie/discussion/comment/118528643#Comment_118528643

I applied to both BOI and AIB. In AIB's case, I had the same issue as Citrus-8, a long closed account blocked me using the online application process. I made an appointment with them (10 working days out in November, when word on the street was that it was taking 2 months). Turned up for my appointment and had my current and deposit accounts opened and available online before I left the branch. ATM/Debit card turned up the following week.

So no idea where the 3 month waiting period is coming from. Anyway I'm sure it varies a lot from branch to branch.

Amik

Just saw this in my newsfeed that backs up JTMan:

https://m.independent.ie/business/irish/customers-face-wait-of-up-to-three-months-to-open-new-account-with-aib-41270418.html

fritzelly

Damn - how am I gonna break this news to my friend, he's gone from AIB (got sick of their antics in branch) to Halifax to UB and just moved to EBS - he's gonna be mad

N26 really need to set up some partnership with the likes of An Post same as AIB/BOI so people can deposit money - would make a killing (that and get on to the EU to force Irish companies to take an EU IBAN number)

Competition is becoming none existent in Ireland cue higher and higher charges

L1011

https://www.boards.ie/discussion/comment/118528908#Comment_118528908

That's for account openings that need in person appointments (joint accounts mainly); and March is five weeks away so calling it three months is a sub editor over-egging the story.

Most people do not need an appointment to open an account.

shanec1928

https://www.boards.ie/discussion/comment/118530483#Comment_118530483

that doesn’t mean that the wait times end on the 1st of March. I was on the phone today to my local branch about an appointment and was quoted a 3-4 month wait. Asked if they had any cancellations or a list and got a call back a few hours later for a cancelled appointment for the end of February.

if you’ve ever held an aib account it seems you have to make an appointment for in person. My account has been closed 7+ years and I can only open an account in the branch.

JTMan

Shocking that there is a 3-4 month wait list to open a current account in a branch and many people have to go down this route (prior AIB account, joint account and other reasons) because the AIB online account opening process cannot deal with all situations. And all this BEFORE KBC and Ulster Bank start forcing people to close accounts.

It is clear that AIB simply do not want more deposits and are creating hurdles to try to stop more deposits.

jj880

Yeah I wanted moved from UB to EBS in January before the madness starts.

Im in the middle of my switcher with bills and wages requested to be moved so just waiting for that to finish now with both accounts open.

Would hope I get at least a year with EBS before having to move again. Shambles.

jj880

https://www.rte.ie/news/business/2022/0201/1277113-revolut-to-offer-loans-in-ireland/

Revolut is to begin offering personal loans in Ireland as its push into the banking market here gathers pace.

The online bank has opened a waiting list for the loans, the first Revolut Bank product it is to offer in this country.

The company also revealed that it has grown its user base here to 1.7 million and employs over 100 people in Ireland.

Revolut says other lending products, such as credit cards, will follow later this year.

It will also be able to offer bank accounts that are backed by the €100,000 Lithuanian deposit guarantee to its Irish users later this year under the full banking licence it was granted by the European Central Bank in December.

phormium

I went into EBS early in January to open current account but was told they were not opening any accounts in January, come back in February! Now at the time I thought it was suspect as I figured when they did start opening them again in Feb they would no longer be free, seems this is more than likely if they even have current accounts at all.

But did some people manage to open EBS current accounts in January despite the supposed 'no account openings in January'? They took my id on the day but said call back in February, probably not worth bothering now, may as well head straight for CU

jj880

https://www.boards.ie/discussion/comment/118571045#Comment_118571045

Yes I got an EBS account open. Contacted them 1st week of January. By the time I got my documentation approved and the switcher started they told me the switcher team was flat out and Id have to pick a date to switch at least 2 weeks away. So maybe they got snowballed with UB customers looking to switch.

I dont know about all credit unions but my nearest told me I could have an account but no card. So went to EBS. EBS is fine. Online banking and the apps are not as good as UB but its does the job. Their online banking gets bottlenecked at certain times of the day but apart from that its fine and theres good phone support.

phormium

https://www.boards.ie/discussion/comment/118573077#Comment_118573077

Interesting! Anyway I'd be happy enough with local CU other than they charge for current account! They have an excellent product really and if anything their online is fancier than I even need! They offer a debit card but I think it's only 2 atm withdrawals a month before more charges and at the moment I don't even use a debit card just an atm one.