Spanish bank ready to shake up Irish market
A SHAKE-UP in Irish banking and the mortgage market is on the way as Spanish lender Bankinter is to establish a full presence here.
The company already exists in Ireland through Avant Money, which offers mortgages at a competitive rate via online banking.
Yesterday, Minister for Finance Michael McGrath welcomed the announcement by Bankinter that it is seeking regulatory approval to establish Avant Money as a branch with a full Irish banking licence.
The new business will begin by offering deposit products, on top of the mortgages, personal loans and credit cards that it currently provides, with an expectation that other services will follow.
Minister McGrath commented: ‘Today’s announcement is significant for the Irish banking market, and is very welcome news for households, businesses and consumers, who are the real winners from increased competition.
‘Today’s announcement by a significant European bank is also a vote of confidence in the strength of the Irish economy.’
Rachel McGovern, director of financial services at Brokers Ireland, said: ‘All in all, a new competitive force in the market augurs well, both in terms of interest rates and in terms of product offerings.
‘Along with the anticipated ECB lowering of its interest rate, probably mid-year, today’s news will bring a bit more optimism for the 80,000 or so who are coming off fixed interest rates in the year ahead and who, up to now, were facing the prospect of much higher rates.’
The lender has grown rapidly in the mortgage market since it was established here in 2019 and today has a portfolio worth €2.4billion, up 53% on a year ago.
Its loan book here is worth €3.3billion, with €2.4billion in mortgages and €900million in personal loans.