Danske Bank has been chosen by the Government to provide government banking services, which include the payments of social protection, wages and pensions.
Danske Bank will also provide transactional services to facilitate tax collection for the Office of the Revenue Commissioners.
The appointment of Danske Bank follows a tendering process undertaken by the Office of Government Procurement. The contract had previously been held by Bank of Ireland.
Danske will be supported by An Post in delivering services through the nationwide network of post offices. The payment of wages and pensions will be the first element to come into place in the next few weeks, followed by social protection payments.
A spokesperson for the Department of Public Expenditure said there should not be any disruption to services, and the only change will be the service provider.
The Government’s objective in conducting the public procurement competition was to identify the most economically advantageous arrangement for the provision of an efficient, streamlined, cost-effective banking structure for Government Departments and Offices.
The new service will provide a comprehensive, integrated and modern banking services solution to the State. Danske is a specialised corporate and institutional financial services provider based in Dublin and operating in Ireland since 2005.
Commenting on the completion of the framework agreement, Minister of State Patrick O’Donovan said, "I welcome the appointment of Danske Bank, supported by An Post, for the provision of Government banking services. This agreement is the result of a detailed and thorough competitive dialogue process carried out by colleagues in the OGP to deliver the best solution for Government departments and the most advantageous arrangement on behalf of the Irish people."
Terry Browne, Country Manager Ireland at Danske Bank, said, it was a landmark contract for Danske Bank. He said it demonstrates the group’s expertise in digital banking and delivering innovative solutions to large institutions including State bodies. "Utilising our technology and supported by An Post’s network of Post Offices, we look forward to working with the respective Government offices to deliver a customer focused, efficient and streamlined banking services model."