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August 3, 2009updated 12 Apr 2017 4:34pm

AIB u-turn: reassessing broker closure plan?

Allied Irish Bank (AIB) is reconsidering recently-announced plans that it was closing to finance brokers. According to media reports, the bank is reassessing its plans and would even re-start relationships with some, if not all, of the finance houses involved. This months issue of Leasing Life revealed that AIB had announced its closure to broker business outside of the motor sector

By Jason T

Allied Irish Bank (AIB) is reconsidering recently-announced
plans that it was closing to finance brokers.

According to media reports, the bank is reassessing its plans
and would even re-start relationships with some, if not all, of the
finance houses involved.

This month’s issue of Leasing Life revealed that
AIB had announced its closure to broker business outside of the
motor sector.

Following Bank of Ireland’s refusal of introduced deals at the
end of June, the bank had sent letters to small finance brokers
throughout Ireland to tell them that AIB was withdrawing letters of
recognition which enabled them to negotiate loans with the
bank.

Ronan Sheridan, group press officer at AIB, confirmed that the
bank had seen a “significant reduction” in referrals by brokers
since early 2008, and this led to the bank closing those
relationships that were not profitable.

Sources at AIB told Leasing Life that in the last year,
the number of referrals from brokers had fallen to 10 percent of
previous levels.

But today Sheridan said that the bank was not severing
relationships with all of its existing intermediaries, only those
which were no longer delivering enough new business.

“It was no longer viable for AIB to maintain the existing
service levels to all intermediaries. Therefore, a review of this
channel was carried out which resulted in a reduction of the number
of intermediary relationships,” Sheridan explained.

“[But] AIB remains committed to the intermediary channel and
will continue to work with and welcome business from active
intermediaries.”

Jason T Hesse

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