No-frills bank accounts should be introduced to bring financially excluded people into the banking system, according to the State’s poverty watchdog.
The Combat Poverty Agency has urged the Government to abolish stamp duty on ATM and point-of-sale cards on these accounts.
It also says banks should train staff to be proactive in assisting people to open accounts.
According to the agency, 20% of Irish households lack bank accounts despite a proposal six years ago from the banks to develop a universal one.
It notes some recent progress with Postbank and some credit unions introducing products for low-income consumers.
It says Ireland has the fourth highest level of financial exclusion among the 15 long-standing EU states.
Doing without mainstream and appropriate financial services mostly affects poorer people, says the agency, and many turn to money-lenders.
Paying annual interest rates causes some families to accumulate debt, says agency director Kevin O’Kelly.
He recommends the new account should allow customers to withdraw up to €20 more than is available if necessary.
He also says bank staff should be trained in the variety of documentation that is acceptable for account opening, beyond a driver’s licence or a passport and a utility bill.
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