# Is Rabobank preparing to leave Ireland ?



## MrEarl (22 Feb 2017)

Hi,

Is Rabo preparing to leave the Irish market completely ?

For obvious reasons, they closed ACC Bank for new lending a number of years back and by extension, they have been running down the loan book ever since.  Recently, they wound up ACC Loan Management and transfered the remaining staff and loan book to Capita (with Capita to manage the loan book on behalf of Rabo, pending a potential sell off of the remaining loans ?).

Next thing, Rabodirect announce that they are closing down the Investment section.

Then I discover that Rabobank are advising all business customers that they will no longer be accepting business deposits and as existing deposits mature, they are being "pushed out" of Rabo, so accounts can be closed.

So, whats next - will we soon see an end to Rabodirect, leaving only a small corporate office as Rabo's final involvement with Ireland (and if so, will that even last ?) ?

This does look quite a bit like how former foreign banks have left Ireland - remember BoS fist closing down Hallifax, then the commercial business, then more and more of the residential book gets sold off with the remainder managed from either the UK or Pepper.   Likewise, we saw Danske start with closing branches and winding up it's Wealth Management, then the regional offices (or hubs or whatever they were called) were closed.


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## Steven Barrett (22 Feb 2017)

I think you may be right. 

Although, having done some work for a client who had a rabo investment account, they were very expensive. All funds were at retail prices when there's lots of places will give the same funds at institutional rates. Lots of customers paying 1.5% for an ETF. 


Steven 
www.bluewaterfp.ie


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## Jim2007 (23 Feb 2017)

Banks are becoming like airlines - basket cases!  You can not give away your services nor operate below cost over the long haul.  Especially in Ireland or the U.K. where banks are trying to make money on debt, credit cards and checking accounts.


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## Lightning (23 Feb 2017)

Rabo have just a deposit business left in Ireland now. RaboBank globally has a glut of deposits, which they are paying negative rates in some circumstances on, so why collect deposits from Ireland when it is not needed? Rates are slightly cheaper for Rabo in Ireland but surely the costs of maintaing a small deposit business here outweigh the cheaper deposits.

If Rabo are gradually winding down their Irish operation, closing their find investment wing before the deposit business makes logical sequential wind-down sense.


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## Steven Barrett (28 Feb 2017)

Rabo are pulling out of the Intermediary Deposit market with effect from March 8. They have to be on their way out. Well spotted MrEarl!


Steven 
www.bluewaterfp.ie


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## Lightning (1 Mar 2017)

Thanks Steven. Do you have a link to this news? Does this simply mean that brokers can no longer resell Rabo products?


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## Steven Barrett (1 Mar 2017)

I got it in one of the numerous emails I get from insurance companies. I didn't see any news online. 

I'm not sure if many advisors had agencies with Rabo but a few insurance companies offered deposit accounts with them. This is the offering that I have been told is now closed. 

Steven 
www.bluewaterfp.ie


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## mtk (2 Mar 2017)

Got a letter saying "new T&Cs  were sent via secure email to my on line account " so wonder if this is all connected ?


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## MrEarl (3 Mar 2017)

SBarrett said:


> .... Well spotted MrEarl!
> 
> Steven
> www.bluewaterfp.ie



Thanks Steven,

But this is one of those times when I'd actually like to be wrong ... the last thing we need is to lose further competition in the banking sector (even if Rabo have not provided full banking for several years, as long as they maintained some facilities, there was always the hope that they might provide additional services at a later date).

Regards,


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## Lightning (4 Mar 2017)

MrEarl said:


> But this is one of those times when I'd actually like to be wrong



There is always a possibility that you might be wrong! To take Rabo at face value, they said they are simplifying their offering. Albeit, it does look like RaboDirect Ireland is in wind-down mode. 



MrEarl said:


> the last thing we need is to lose further competition in the banking sector



I think future competition won't be from traditional entrants, but rather app based offerings and pan-European offerings like Revolut, N26, Raisin etc.


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## Lightning (5 Mar 2017)

The Sunday Times reports on the RaboDirect changes here. 

A significant 2 BN in deposits are effected by the latest change: "Rabodirect, a Dutch online bank, is to stop offering deposits through independent financial advisers. The move, affecting about 300 customers with €2bn on deposit, comes as the bank winds down its separate investment business, affecting more than 5,000 retail customers with funds under management of €100m."

Rabo have again said that they are committed to Ireland: "Despite the retrenchment, RaboDirect insisted it is committed to its remaining business in Ireland, where it has more than 90,000 customers with €5.4bn on deposit." We will see.


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## MrEarl (6 Mar 2017)

Hello CiaranT,

Thank you for your response.

While I fully appreciate that I could be wrong about my suspicions, we have seen other banks in the past tell us that they are definitely staying and then do a disappearing act.

On a technicality Rabo could insist they are staying in Ireland, but ultimately end up with nothing more than a small corporate office in the IFSC for example.  Our danish friends did something similar, after all


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