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BANK OF IRELAND PLUMPS FOR THE ISLE OF MAN
Bank of Ireland has made its Isle of Man subsidiary the head office for its offshore operations in a move which has seen staff numbers at its Guernsey base cut from more than 30 to eight.
Bristol & West International, the bank's Guernsey-based operation, has become a branch of the Isle of Man company and now deals purely with sales and marketing.
Bank of Ireland closed down its Jersey operations four years ago, transferring the business to the Isle of Man.
Roly Alden, who heads up Bank of Ireland's Isle of Man subsidiary, said the move was 'quite a coup' for the Island.
The transfer of accounts from Guernsey has seen the Island-based bank's deposits double to around 2 billion.
'When the bank closed the Jersey operation about four years ago I suggested that we look at Guernsey but it was felt the timing was not right. Last year the group took a strategic look at Guernsey and decided to act,' said Mr Alden.
The move of back-office operations to the Isle of Man has seen local staff numbers climb by nine to a total of 40 people.
The Bristol & West International brand name is being retained.
Mr Alden said the group had been aiming for an 80 per cent transfer of accounts from Guernsey to the Island. 'We did in fact achieve 93 per cent. The response from customers has been very good,' said Mr Alden, noting that savings from the move of the branches were expected to be 'substantial'.
He said the key factors considered when deciding on the Isle of Man were the physical size of the existing premises and the skills and management competences of the two teams.
'We have a strong technical team in the Island and Guernsey is still around 15 per cent more expensive in terms of salaries etc. Also it is easier to bring people into the Island.'
Mr Alden believes that the traditional perception of the Channel Islands having a higher international profile than the Isle of Man is waning.
However, he felt it was critical that more is done to raise skills levels in the Island so that it can move up the value chain.
Asked about the likely effect of the EU savings directive which is due to take effect in July, Mr Alden said: 'I definitely feel there will be a diminution of personal account balances but the jury's still out as to whether that is going to be 5-10 per cent or 30 per cent loss.'
He questionsw whether the directive will in fact come into operation in July given that Italy and Greece have not yet begun work on the necessary primary and secondary legislation.
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Weather for Isle of Man
Thursday 09 February 2012
Today
Light showers
Temperature: 7 C to 9 C
Wind Speed: 20 mph
Wind direction: South west
Tomorrow
Light rain
Temperature: 6 C to 9 C
Wind Speed: 14 mph
Wind direction: South east
