EBS launches review of its operations

[Freelance]

EBS launches review of its operations

EBS has begun a review of its operations which could see its future focus shift to strengthening its mortgage business while also achieving efficiencies in other areas.

www.rte.ie

EBS looking to focus on mortgage business, and by the sounds of it reduce its focus on current and deposit accounts.

AIB getting anxious about the hoards descending from UB and KBC into an environment which is ill prepared for a huge increase in customer numbers and transaction volumes ??

 

[Brendan Burgess]

Very interesting.

The new entries will have much lower operating costs by using service agents like Pepper to administer the loan book.
When the current deposit surplus is over, EBS will need deposits or maybe they can use AIB as a source?

If so, they could switch to a very low cost operation and stay competitive.

Brendan

 

[MrEarl]

Hello,

IMHO the EBS franchise should either be sold off, or wound down. It makes no sense to me, for AIB to continue to retain it (appreciate the history, as to how they found themselves with it etc).

It's more akin to an old fashioned building society, than a modern technically enabled Bank (with an expensive branch network, and limited technology, or product offerings). I don't see justification for significant investment from AIB, to modernise it.

 

[Odea]

Anytime I visit my local EBS branch the staff are sitting there scratching themselves. No matter what type of question I ask them I am told to ring "our head office". I honestly think that they could take on a huge amount of business from the Ulster Bank and KBC it would give some of their staff something to do.

 

[Monbretia]

I'm not surprised! Tried to open an EBS account lately, their version of a free c/a, was told not opening any accounts in January, cutting contacts blah blah but I suspected that when they start opening them again in Feb that there will be a charge on their previously free c/a, can't blame them really! May have to rethink and head for CU.

 

[MrEarl]

Whatever the possibility of EBS being an alternative provider in the market, I don't see the logic to AIB investing to make it one. Why compete with yourself, spending lots of money on seperate branding etc. along the way?

The former management of the EBS made an absoute bags of it (providing extremely low rate commercial property loans etc.), hence it had to be rescued, so was acquired by AIB (effectively the State) - who have essentially been left minding the baby every since.

AIB should either spin it off as an independent, or wind it up, in my mind. It's useless, in its current form.

 

[MrEarl]

Very interesting.

The new entries will have much lower operating costs by using service agents like Pepper to administer the loan book.
When the current deposit surplus is over, EBS will need deposits or maybe they can use AIB as a source?

If so, they could switch to a very low cost operation and stay competitive.

Brendan

Out of interest, could you see them adopting that model, while under AIB's ownership?

If so, what do they do with all of the EBS staff, for example? Would they be TUPE'd over to Pepper, made redundant, some possibly redeployed within AIB?

I'm struggling to see the benefit, unless AIB sold EBS. However, post sale, I could see the model being successful.

 

[Lightning]

Another deposit taker (probably) bites the dust.

Deposit taker exits over the last 15 or so years list continues to grow:
Anglo
Irish Nationwide
Investec
Halifax & Bank of Scotland (Ireland)
KBC (likely)
Ulster Bank (likely)
Postbank
Nationwide UK (Ireland)
EBS (likely)
Northern Rock
NIB
ICS
Multiple credit unions
Leeds Building Society (Ireland)
RaboDirect & ACCBank

EBS will need deposits or maybe they can use AIB as a source?

If so, they could switch to a very low cost operation and stay competitive.

Irish Times say that EBS will use AIB as a deposit source.

I can't see how EBS's legacy branch network makes any sense in this day and age especially if they exit the savings and current account products.

I would guess that EBS will act as an online only mortgage brand funded by AIB deposits. A much lower cost operation as you say.