Some branches may be replaced

Bank of Scotland Ireland (BOSI) is to open more than 50 branches between November 2005 and mid-2006, following its acquisition of the ESB's retail business.

The move is expected to result in increased competition in the banking sector and lower charges for consumers.

BOSI will inherit the ESB FinancElectric consumer loan book as well as 52 ESB shops as part of the deal, which is due to be completed by July 1st.

From the end of the year, the bank will provide the ESB's Billpay and cash payment facilities currently offered through the ESB shops.

This gives BOSI access to over 185,000 ESB customers who either pay bills over the counter at ESB shops or have taken out loans to pay for white goods.

ESB is to retain its premises at Fleet Street in Dublin and Academy Street in Cork.

BOSI said it would consider opening further branches to give it a presence in the two city centres and in Galway city centre. It also signalled it would consider replacing some branches with better locations within the same towns.

BOSI said its acquisition of a branch network demonstrated its resolve to provide consumers with real choice in their banking.

Customers will be able to deal with the bank through the new branch network, the bank's existing broker network and internet and telephone banking channels that are in development.

BOSI chief executive Mark Duffy said Irish consumers had benefited from increased competition when its entry into the home-loan market in 1999 led to cheaper mortgage interest rates.

"You can expect more of the same over the next six to nine months," Mr Duffy said.

The first of a planned seven retail banking products will be launched next month. A further three will come on the market in the final quarter of 2005. These three will be BOSI's "hero" products and will bring "considerable savings" to consumers, according to Mr Duffy.

The final three products will be introduced next year and are likely to include a competitive personal current account.

The bank already claims a 6 per cent share of the mortgage market and a 25 per cent share of the motor-loan market. It also offers business banking services and sells motor and home insurance through its partner, Jardine Lloyd Thompson.

Mr Duffy said the branches, which will continue to open six days a week, will eventually offer the full range of daily banking services and will make banking a "pleasurable experience" for consumers.