CUSTOMERS of Ulster Bank and KBC have been warned to think hard before opting for a new account with EBS.
This is because the former building society, which is owned by AIB Group, could end up closing down its current accounts.
Around 500,000 people will need to find new current accounts with the departure of the two banks.
AIB said in January that it is undertaking a major “strategic review” of EBS’s operations.
This could lead to a reduction in the products and services that EBS offers, such as current accounts.
The EBS MoneyManager account offers basic services, but costs almost nothing to run and will probably be a choice for some people, according to Daragh Cassidy of price comparison site Bonkers.ie.
There is no overdraft facility, no ApplePay or GooglePay, and no cheque book offered as part of the account.
Mr Cassidy said the account is cheap to operate, but he warned consumers seeking out a new day-to-day banking account that EBS may shut down its current accounts to concentrate on being a mortgage specialist.
“Ulster Bank or KBC customers who go through all the hassle of switching to EBS may find themselves in the nightmare scenario of having to switch again in a few months’ time,” Mr Cassidy said.
If only 1pc of customers of Ulster and KBC switch to EBS over the coming weeks it would amount to 5,000 people.
Mr Cassidy called on AIB, which owns EBS, to clarify its intentions as soon as possible.
"Or at least have the decency to let people know whether it’s genuinely thinking about ceasing operating current accounts. And if it can’t do this, then it should explicitly warn any customer who tries to open a current account of its strategic review.”
A spokesperson for AIB Group said it continues to invest EBS’s digital capability, distribution network and customer proposition to support a growing number of customers seeking to buy a home.
“In line with this support for our customers, EBS is also undergoing a number of strategic changes that build on the current proposition. In the event of any developments to our services, we will notify our customers,” the bank said.
Once the country’s largest building society, EBS has been a fully owned subsidiary of AIB since 2011 and currently operates 68 branches and offices around the country.
EBS was taken over by AIB under government orders in 2011, at the height of the financial crisis.
Aside from mortgages, it offers savings accounts, personal loans, insurance and pensions services.
EBS has been concentrating on offering mortgages in the last two years, leading to speculation that it will stop offering its current and savings accounts
It is expected that EBS savers will be offered an easy opportunity to move their deposits to AIB in the event that it decides to retreat from savings products.
The scramble by customers of Ulster Bank and KBC Bank Ireland to find new accounts represents the largest bank switching exercise in the history of the State.
Meanwhile, a leading customer experience expert has urged banking customers looking to set up new current accounts to consider what the different institutions have to offer from a customer experience (CX) perspective.
Chief executive of the CX Company Cathy Summers said given that a lot of the institutions offer broadly similar products and services, customers looking for a differentiator should look at the overall customer experience they provide.
Its most recent survey found the credit unions continue to hold the number one position in a massive survey of customer experience.
It is the only brand to remain in the top 10 over that seven-year period.
An Post Money was one of the biggest jumpers in 2021 – up 40 places from 2020 when it came in as a new entrant in at 60th.