Bank of Ireland has informed 130 staff that it plans to outsource its cheque clearing operations to an external company called BancTec.
In a statement the bank said the decision was taken following a strategic review.
It said all impacted staff will be given the option to move to BancTec as part of the contract, seek redeployment opportunities within the bank itself, or take voluntary redundancy.
The company said it will also retain a number of employees in the area, but did not specify how many.
The bank will now engage with one-to-one meetings with staff with a view to completing the move by the end of June.
It said it is committed to working closely with those impacted by the announcement and supporting them through the transition process.
A spokesperson for Bank of Ireland said that the volume of cheques cleared in the island of Ireland per day has halved in the past five years: from just over 500,000 paper items per day, to approximately 240,000 items a day.
Bank workers' union the Irish Bank Officials' Association said the announcement was disappointing "given the commitment of those staff to Bank of Ireland and the fact that Bank of Ireland is back in profit".
The association welcomed the bank's statement that it would honour an agreement on job security and would enter full negotiations with the union ahead of any transfer of staff.
IBOA said it would enter into negotiations with Bank of Ireland and BancTec on Monday.
