Implications for current account holders if Ulster Bank closes?

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mmclo

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As this looks fairly certain now think there might be something to be said for a general thread? My two cents worth in terms of questions?

Will they be required to provide a switcher service?
Pros and cons of using Revolute, N26 etc?
What happens to credit card accounts, couldn't they be kept on?
What will be the impact on competition?

It may all be easier in these fintech times but it's one of the biggest bank closures in this countries history I think
 
Michael McGrath was quizzed about it today by Brian Dobson.

He didn't confirm/deny anything. But then again UB have no state involvement so it's debatable as to how much he knows.

That said, the tone of his responses suggested (to me) that UB are out the gap..
 
mmclo said:
will they be required to provide a switcher service?
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There's already an existing service provided among the domestic banks

mmclo said:
Pros and cons of using Revolute, N26 etc?
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Pros for these are they are cheaper/easier than bricks and mortar banks. Could be looked at regardless of Ulster banks decisions


Con no good if you use cheques. Not sure of Revoluts banking status. If it's not licenced it's not covered by a deposit guarantee scheme. ... Open to classification on that one as I know they were looking for one in Latvia(?)


mmclo said:
What happens to credit card accounts, couldn't they be kept on?
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Yes they could but it would defeat the point of closing down in the first place. Alternatively the credit card book could be sold. MBNA did this with it's credit card business, now known as avantcard.

mmclo said:
What will be the impact on competition?
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Unlikely to be good. Really depends on how any wind down is carried out (if there is to be one) and who buys the loan books

They have a sizable corporate loan book so were providers of credit to businesses. When the economy reopens being down a business lender won't do anyone any favours.


On the household front that were reasonably competitive on fixed rate mortgages and their flexibility on overpaying was a nice addition to the market.

Deposit market - having €20 billion looking for a new home won't help already closed to zero rates

mmclo said:
It may all be easier in these fintech times but it's one of the biggest bank closures in this countries history I think
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In fairness to us we've weathered banking closures before. I've had the pleasure of (opening and) closing accounts with danske, Halifax, nationwide (IE & UK) and a few others. But it's definitely one of the more established names and branch networks.
 
What about historical statements etc. not sure it's all online, can think they might be needed in time, shouldn't everyone get a data dump? I've been with them all my banking life
 
Pinoy adventure said:
@Red if it was wound up,would those with deposits be given a cheque for the balance of there accounts ?
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I've absolutely no idea, but it's very unlikely that another bank would be interested in taking the deposits in the current environment, but anything could happen. It's a complex full bank structure, so nothing is going to happen overnight if they decide to exit, so you'll have plenty of time to plan.
 
Pinoy adventure said:
@Red if it was wound up,would those with deposits be given a cheque for the balance of there accounts ?
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AFAIK when NWUK wound down it's IE operations any residual deposits were transferred to the UK. I imagine the same would happen here. The cost of warehousing those deposits in the UK would be minimal. They would sit there until claimed earning zero (or worse) interest.

Can't see them sending out cheques. Imagine how many accounts have outdated details.
 
bear in mind that if NW announce UB is to close, it could take years to wind down so nothing is going to happen overnight. In the short term, the bigger issue will be a strike by staff (which is understandable in fairness)
 
RedOnion said:
Just remember, very different times. Banks actually wanted more deposits back then!
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I appreciate times have changed but operationally NWUK and UB are the same. They don't want Irish deposits.

While Ulster Bank doesn't want the deposits it's ultimately up to the account holder to take them. Most will be withdrawn within the short term. Withdrawal of current account facilities will be key. We'll all shuffle on if we're not able to get paid or pay for things.

Operationally transferring the small balance to the UK won't cost much. Remember the likes Anglo deposits and AIB direct?

It's this residual that might take years to whittle down. I'm not thinking huge money but all those forgotten accounts that have €10 sitting in them add up. Fine send a cheque out but when it comes back "not at this address" all you've done is cost yourself the price of a stamp. You Wearhouse it in NW until such time as it becomes dormant.
 
Peanuts20 said:
bear in mind that if NW announce UB is to close, it could take years to wind down so nothing is going to happen overnight. In the short term, the bigger issue will be a strike by staff (which is understandable in fairness)
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What would the strike be for?
 
NiallSparky said:
What would the strike be for?
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because 2500 people employed by the bank are going to lose their jobs. They'll strike to firstly try and prevent it, knowing full well they won't succeed so then they will strike for the best redundancy package or best package to TUPE over to anyone who takes over part of the business.
 
mmclo said:
What about historical statements etc. not sure it's all online, can think they might be needed in time, shouldn't everyone get a data dump? I've been with them all my banking life
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There will still be a legal entity that is obliged to respond to requests for certain information.
 
Why is the Dail Finance Committee suggesting they will be able to force Ulster Bank to sell to BofI or AIB. They have no power to do this surely?
 
Bronte said:
Why is the Dail Finance Committee suggesting they will be able to force Ulster Bank to sell to BofI or AIB. They have no power to do this surely?
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Saw that in the news today and thought it was surely illegal from a anti-competition POV.
 
My mortgage is with UB, I have found them absolutely appalling to deal with.
My current account is with AIB, I have had very few difficulties with them for many years.
If AIB buy IB mortgages, this puts me in a position I do not want to be in, in that my current account would not be as separate from my mortgage account as I like.
I may have to move my current account.
(I would not get a mortgage now, and I certainly would not get the tracker rate I fought to regain!)
 
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