Bank of Ireland is set to report Allied Irish Banks and University College Dublin to the Competition Authority, claiming that they are denying students the benefits of competition. The row centres on the banking service on the Belfield campus, run by Bank of Ireland for 25 years but recently awarded to AIB for a consideration thought to be £8 million (€10 million) for 10 years.
Bank of Ireland says that during its tenure of the contract, it never prevented other banks from promoting themselves to the campus's 18,000-strong population, and considered that the exclusivity clause in its contract with the college referred only to the provision of banking service. Now, the bank claims, AIB and UCD have adopted a highly aggressive approach.
In a complaint expected to be lodged with the Competition Authority, Bank of Ireland will claim college authorities interfered with the distribution of "fresher welcome kits", forcing a marketing company to remove anything with a Bank of Ireland logo on it.
Esat Digifone personnel and vehicles were also ordered off Belfield because their promotion included a Speakeasy phone jointly sponsored by Bank of Ireland, the bank alleges.
Threats were made to student organisations such as debating clubs and the dramatic society that their grants could be withdrawn if any of their activities were construed to promote Bank of Ireland, the company says.
"The vigour and enthusiasm with which exclusivity is being implemented - and the whole volte face on the previous situation - is what is most surprising," said Mr Des O'Reilly, Bank of Ireland's general manager for sales and marketing.
He said in any other community of 18,000 adults there would typically be several branches of each bank. When Bank of Ireland ran the UCD bank, he added, AIB was permitted to promote its off-campus services with a Freshers' Week caravan.
Dr Tony Scott, the director of public affairs at UCD, rejected Bank of Ireland's view.
"AIB has an exclusive licence to operate. Under the new agreement, any promotion by another financial institution is not allowed, but sponsorship is allowed."
