Allied Irish Bank plans to cut 1500 jobs by 2023 in an effort to cut costs by £1.35 billion and reshape its business to reflect the digital shift seen since the outbreak of the Covid crisis.
In an investor update, the bank says Covid-19 has significantly changed the way its customers bank, cutting branch footfall by as much as 50% at the peak of the outbreak and encouraging wider adoption of digital banking services.
In Q3, AIB reported a nine percent increase in digital adoption amongst over 40s, rising to 27% in digital daily usage among the over 65 age group. Average monthly mobile transactions also shot up by 32%, while 77% of Q3 personal loan drawdowns were completed via digital channels, of which 82% were on mobile.
Ceo Colin Hunt, says: "Covid-19 has dramatically changed the operating environment, presenting both challenges and opportunities and accelerating the trends of digitalisation, changing ways of working andsustainability. In short, it has made significant change both necessary and possible."
The bank says it expects to achieve the job cuts by a combination of normal retirements, natural exits and voluntary severance.
At the same time it will be recruiting up to 400 new staff in "change and digital disciplines," with the objective of reducing relying on third party suppliers and contract staff.