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'Surprise and frustration' at lack of IoM Bank flexibility

MHKs say letter from bank is shortsighted and insulting to customers

An MHK says he's surprised Isle of Man Bank hasn't been more flexible after announcing plans to close two of its branches in the New Year.

The company announced in September that the Peel and Castletown outlets will be shutting in the New Year.

Despite protests and a petition against the move, the bank has written to Glenfaba and Peel MHKs Ray Harmer and Geoffrey Boot to defend to decision.

Mr Harmer says it's a frustrating situation:

You can hear Mr Harmer's interview with Manx Radio's Sian Cowper in full below:

The letter from Isle of Man Bank explaining why it's closing its Peel branch in the New Year offers 'no hope' to its customers, according to Mr Boot.

The bank cites a 55% drop in footfall and fewer people using cash as the reasons for the closure.

Mr Boot says it's a shame a compromise couldn't be found:

You can hear Mr Boot's full interview below:

Manx Radio approached Isle of Man Bank for an interview, but a spokesperson for the organisation said it did not wish to comment further.

The full text of the the letter from the bank's CEO Andrew McLaughlin to Mr Harmer and Mr Boot can be read below:

"Thank you for your letter of 2nd November 2020, in response to ours of 28th September.
 
"I appreciate you taking time to communicate the concerns you have, and also for your comments regarding the efforts we made to assist our vulnerable customers and actions undertaken during the early part of the covid-19 pandemic.
 
"At the time of writing to you in September, we had not received the petition that you reference. Since receiving the petition I know that Stuart Chivers has responded to you separately.
 
"When I referred to footfall in my previous letter I explained that this had reduced by 55% in the five years to 2020. This figure is captured by the number of counter transactions recorded on our teller system. The vast majority of branch transactions are recorded on this system. I’m sure you will agree that this is a significant reduction in footfall. 
 
"Regarding business banking, the majority of our customers who could benefit from the G4S ‘bank to you’ service have been contacted where appropriate. More and more customers are choosing to pay by card and there is a definite shift towards a cashless society. While not everyone will like or support this idea, we wouldn’t be doing the right thing if we allowed our customers to be left behind and didn’t help them prepare for this likely eventuality. 
 
"While a significant proportion of our customers have adopted digital banking methods (and I would assert that this is arguably the most eco friendly way to bank), we do know that some people do not want to use online or mobile banking and would prefer face to face banking. We’re committed to giving customers access to a branch as part of our overall service, however it is now necessary to close some for commercial reasons. We feel the cost savings will allow us to invest more in the areas where the majority of our customers do business with us, and to help improve those journeys.  
 
"Regarding customers in vulnerable situations, there are a large number of reasons why a customer would need more support. It’s rare that any one situation is the same as another and we endeavour to help customers with the most appropriate solution for them personally, based on individual circumstances.
 
"At the moment, Penny, our mobile branch is off the road due to health and safety concerns. 
 
"We would be pleased to arrange for the appropriate colleagues to meet with you to discuss our move to digital banking and how we can support your constituents. Please let me know if this is something I can arrange."

Both branches are due to close for the final time on 7 January.

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