Bank of Ireland has denied that recent criticism of the banking sector prompted yesterday's launch of an interest-paying online current account for businesses, saying the product received the green-light as early as last spring.
The bank's announcement of an electronic account paying up to 0.75 per cent interest on credit balances arrives at a fraught time for the industry.
The Competition Authority last week said it was investigating possible anti-competitive practices among financial institutions, while the director of consumer affairs, Ms Carmel Foley, accused banks of operating as a "club" and called for far-reaching reforms to ensure greater transparency and allow competitors more easily enter the market.
But Mr Tom Comerford, director of business banking, denied the recent storm of criticism had prompted the unveiling of the electronic business current account, which has been planned since February.
Though shifting customers to the internet will cut overheads, it is impossible to put a figure on the savings as they represent future outlay which the bank has been spared, he says. The initiative has been months in the planning, forming a key plank of the bank's online strategy.
The account functions like a normal current account for electronic transactions, with interest on credit balances calculated on a daily basis.
With no minimum amount or minimum period in credit required to attract interest, Bank of Ireland claims it is offering the "most comprehensive and flexible" interest- bearing business account on the market.
The bank's business online service provides packages for sole traders, small enterprises and corporate customers. It has 60,000 registered users.
Interest on a typical account will exceed €200 per annum, the bank predicts.
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