Bank boost for Post Office network

Ireland’s biggest banking group is to link up with the state-backed post company in a move that will lead to 1,000 post offices becoming its agents.

The alliance between Allied Irish Banks (correct) and An Post is part of a strategy on the part of the bank to maintain a branch presence in all of Ireland’s rural towns and villages, and comes at a time when a number of local post offices have been seen as under threat of closure on financial viability grounds.

Dublin-based AIB said the development would permit personal customers to lodge and withdraw cash from accounts through their local post offices, and mean that the number of their outlets will increase from the present total of 280 to 1,280 when the new scheme becomes operative in July next year.

Eugene Sheehy, the bank’s managing director in the Irish Republic, said “We believe the branch network plays a primary and pivotal role in serving our customers and we are committed to sustaining a network suited to their needs.

“The link with An Post is an extremely important part of that objective. An Post has an unrivalled nationwide reach and the capacity to take on additional business.

“It is, therefore, an ideal partner for AIB and we are confident that this link will benefit all our customers.”

An Post chief executive John Hynes said: “New business means more transactions _ and that is good news for post offices.

“We are delighted to be involved in this development, and this new link is a very welcome addition to our expanding business portfolio.

“This will strengthen the position of the post office as a trusted intermediary which has always enjoyed community support.”