14th February, 2008

Northern Bank and its sister company National Irish Bank have removed a key barrier to cross border trade by abolishing fees for online cross border transfers between customer accounts in the same name.

This move is the first by any bank in Northern Ireland. For Northern Bank customers who have an account in National Irish Bank or any of the other banks in the Danske Bank Group, it means that online transfers are not only completed the same working day but are now free.

Until now, customers transferring funds between their accounts in Northern Bank and National Irish Bank were charged £12.

DETI’s Manufacturing Sales and Exports Survey 2006/2007 revealed that local businesses consider ‘lack of bank support’ as a barrier to cross border trade. Large sized businesses reported currency differences as the main barrier while medium sized businesses ranked this third.

Gerry Mallon, Northern Bank’s Deputy Chief Executive, commented: “An increasing number of personal customers as well as business, need to transfer funds regularly between Northern Ireland and the Republic. It’s also widely acknowledged that North / South trade has not yet reached its potential.

“Our advanced technology means that we now realise cost savings when processing these transactions. By removing these fees we are passing the benefits on to our customers and we are making cross border banking cheaper and easier, therefore removing a major barrier to cross border trade. Thanks to Danske Bank Group’s single technology platform, which services all the banks in the Group, we are the first to introduce this to the Northern Ireland market. Customers benefit because any changes to the core system are automatically made available to all banks within the group at the same time.”
Liam Nellis, Chef Executive of InterTradeIreland, welcomed the change as further progress to removing barriers to cross-border trade. He said: “The recent BT / InterTradeIreland Business Monitor found that two thirds of businesses across the island of Ireland expect levels of cross-border business to grow, which supports the belief that trade has not reached its full potential.”

Statistics from the North / South Ministerial Council indicate that approximately 18,000 workers, 5,200 students and 4,000 migrants cross the border to work or study each year, with another 1.7 million crossing to shop or for other purposes by bus or train. 90,000 people born in one jurisdiction have moved to live in another jurisdiction.

Mr Mallon continued: “People who live in one jurisdiction and commute to work on the other on a regular basis and those who remit funds earned in one jurisdiction back to their own account at home, could benefit greatly from this move.

“Many of our customers have already recognised the benefits of using our state of the art online banking systems to transfer funds quickly and easily. The advanced technology means that we can provide a more convenient, accessible way of banking and by removing these charges our customers gain savings too.”

Customers interested in learning more about the benefits of Business eBanking or eBanking should contact their local Northern Bank Finance Centre or branch.

ENDS

Notes to Editor: