The Banking & Payments Federation Ireland (BPFI) and its members have met with a number of regulators and a wide range of direct debit originators to discuss a coordinated approach to handling customers moving from Ulster Bank and KBC Bank Ireland.
The organisation, which represents the retail banking and fintech sector in Ireland, held a roundtable discussion with the Central Bank, ComReg and the Commission for Regulation of Utilities (CRU) to discuss ways in which to better support customers moving from the lenders.
The BPFI said it wanted to ensure consumers and businesses are encouraged to update their direct debit payments as they make the move ahead of the pending exits of the two banks, with more than 600,000 accounts being opened with the three remaining banks so far this year.
Figures collected by the BPFI from a range of direct debit originators estimate that in the region of 30% of customers who are moving their accounts have updated their direct debit originator with their new bank account details.
Speaking after the meeting, Brian Hayes, CEO of the BPFI, said the organisation had met with direct debit originators on a monthly basis to "discuss emerging issues and to allow for key considerations to be highlighted at a broader level.
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"In particular, discussions have focused on the potential volume of customers required to update account details; communications with customers at industry and individual company level; the Switching Code and its operation; and considerations relating to payments including IBAN discrimination and direct debit mandates," he added.
"Building on that, today’s meeting has brought together financial services providers, the relevant regulatory authorities and a wide range of direct debit originators in order to have an open dialogue on the state of play across the various sectors in relation to the updating of direct debits and to ensure we are working closely together to provide as smooth a transition as possible for impacted customers.”
Hayes confirmed that nearly a quarter (24%) of KBC and Ulster Bank accounts have been closed since the start of the year, but just 30% of customers moving accounts have updated their direct debit originator with their new bank account details.
"This very much underlines the fact there is still a journey to be travelled and further action is required by both customers and the wider industry in this regard," he continued.
“As banks and other financial services providers, regulators and direct debit originators continue to intensify efforts to work together proactively by identifying and addressing issues and monitoring capacity, one of the key messages from today’s session is to urge customers, once they have opened a new account, to keep going with the process.
"This includes making a list of all your direct debits and working through this list to update all your providers with your new account details be it your utility company, phone or broadband provider, your insurance provider, or the Revenue Commissioners.
"Crucially we also want customers to know that banks and other financial services providers, along with direct debit originators are available to support them through this process.
"We would encourage consumers or businesses who are moving accounts to visit our website movingaccount.ie where they can find a wealth of in-depth information and advice including a list of some of the larger direct debit originators and information on how to update your account details for any direct debit arrangements you may have with them.”
