Bankinter’s Irish Expansion: A New Era for Retail banking
Table of Contents
- 1. Bankinter’s Irish Expansion: A New Era for Retail banking
- 2. From nonbank Lender to Full-Service Bank
- 3. A Digital-First Approach
- 4. Regulatory Approvals and Consumer Protections
- 5. A Historic Milestone for Irish Banking
- 6. What’s Next for Bankinter in Ireland?
- 7. Why This Matters for Irish Consumers
- 8. Conclusion
- 9. What strategies will Bankinter implement to ensure a smooth transition for its customers during the rebranding process from Avant Money to Bankinter?
In a meaningful move for Ireland’s financial sector, Spanish banking giant Bankinter is set to establish a full-fledged branch in the country, marking the first entry of a customary overseas lender into the Irish retail banking market since 2005. This growth is poised to bring fresh competition and expanded services to Irish consumers, with Bankinter’s Irish unit, Avant Money, transitioning into a fully licensed banking operation.
From nonbank Lender to Full-Service Bank
Avant money, currently operating as a nonbank lender, has already carved out a niche in the Irish market, offering mortgages, credit cards, and personal loans to over 200,000 customers. Funded by its parent company, Bankinter, the lender is now gearing up to introduce deposit accounts, leveraging its new banking licence to broaden its offerings.
“On April 1st, 2025, or shortly afterwards, Avant Money will merge into a newly established Irish branch of Bankinter SA,” the company informed its credit card and personal loan customers via email. “The legal ownership of all contracts, assets, and liabilities of avantcard DAC will transfer to the Irish branch of Bankinter.”
A Digital-First Approach
Unlike traditional banks that rely heavily on physical branches, Bankinter plans to adopt a digital-first model in Ireland. With 300 employees—two-thirds based in Carrick-on-shannon, co. Leitrim, and the remainder in Dublin’s Sandyford Business Park—the bank aims to deliver seamless online banking services. This modern approach aligns with evolving consumer preferences for convenience and accessibility.
Regulatory Approvals and Consumer Protections
Bankinter has secured the necessary authorizations from the European Central Bank (ECB) and Spain’s central bank, banco de España. The company has also been collaborating closely with the Central Bank of Ireland since announcing its branch plans in April 2024. Customers can rest assured that their rights and protections will remain intact under the new structure.
“Bankinter is authorised by Banco de España and will be regulated by the Central Bank of Ireland for conduct of business rules. This means you will continue to be protected by all the same rights and protections, including those in the Consumer Protection Code and the General Data Protection Regulation (GDPR),” Avant Money stated in its email.
A Historic Milestone for Irish Banking
Bankinter’s entry into the Irish retail banking market is a landmark event,marking the first such move by a traditional overseas lender since 2005. That year saw Bank of Scotland acquire 52 former ESB shops to establish a physical presence, while Danske Bank took over National Irish Bank. However, both banks eventually exited the market—Bank of Scotland in 2010 and Danske Bank in 2013—leaving a gap that Bankinter now aims to fill.
What’s Next for Bankinter in Ireland?
initially, the bank will operate under the Avant Money brand before transitioning to the Bankinter name. The focus will remain on expanding its product portfolio and enhancing its digital offerings. With plans to communicate further details to mortgage borrowers in the coming weeks, Bankinter is laying the groundwork for a robust presence in Ireland’s competitive banking landscape.
Why This Matters for Irish Consumers
the arrival of bankinter is expected to inject much-needed competition into the Irish banking sector, perhaps leading to better rates, innovative products, and improved customer service. For consumers, this means more choices and greater flexibility in managing their finances.
Conclusion
Bankinter’s expansion into Ireland represents a pivotal moment for the country’s retail banking industry. By combining a digital-first approach with a commitment to consumer protection, the Spanish banking giant is well-positioned to make a lasting impact. As the April 2025 transition date approaches, all eyes will be on how Bankinter reshapes the Irish banking experience.
Four years ago, the Irish banking landscape underwent a significant shift when Ulster Bank and KBC Bank Ireland, the last two overseas banks operating in the market, announced their gradual exit. This departure left a void, but it also paved the way for a new wave of financial players to step in.
In recent years, digital-first banks like Revolut and N26 have made their mark in Ireland, offering a range of loan and savings products.Revolut, in particular, has aspiring plans to enter the Irish mortgage market this year, signaling a potential shake-up in the sector.
Another notable entrant is Bankinter, Spain’s fifth-largest bank with a robust €118 billion balance sheet.In 2019, Bankinter made its move into the Irish market by acquiring AvantCard, a credit card and consumer finance business, from US investment group Apollo.This acquisition marked the beginning of a new chapter for the brand, which was later rebranded as Avant Money.
By late 2020, Avant Money had expanded its offerings to include mortgages, introducing fixed-term products with rates starting at just 1.95%. This aggressive pricing strategy positioned the company as a strong competitor,undercutting many of the existing home loan options available at the time.
The results of this strategy have been impressive. Over the 12 months leading up to September of last year, Avant Money’s mortgage book grew by a staggering 41%, reaching €2.7 billion. New lending for the first nine months of the year surged by 37%, hitting €900 million. the company also captured an 8% share of new Irish home loan production during this period.
But mortgages aren’t the onyl area where Avant Money is thriving. Its consumer credit book saw an 18% year-on-year increase, climbing to €900 million. Net interest income for the first nine months of the year rose by 7% to €73 million, while pretax profit jumped 12% to €290 million. These figures underscore the company’s growing influence in the Irish financial market.
As the banking sector continues to evolve,the rise of digital banks and innovative newcomers like Avant Money highlights the changing preferences of consumers. With competitive rates and a focus on customer-centric solutions, these players are reshaping the way Ireland thinks about banking.
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What strategies will Bankinter implement to ensure a smooth transition for its customers during the rebranding process from Avant Money to Bankinter?
Interview with María López, Head of Digital Transformation at Bankinter Ireland
Archyde News Editor: Thank you for joining us today, María. bankinter’s expansion into Ireland is a important advancement in the retail banking sector. Can you tell us more about the decision to establish a full-fledged branch in Ireland?
María López: Thank you for having me. The decision to expand into Ireland was driven by several factors. Firstly, we identified a gap in the market following the exit of other international banks like Bank of Scotland and Danske Bank.Ireland’s growing economy and the increasing demand for digital banking solutions made it an attractive opportunity for us. Additionally, our subsidiary, Avant Money, has already built a strong foundation in the Irish market, which made the transition smoother.
Archyde News Editor: Bankinter is known for its digital-first approach. How will this model be implemented in Ireland, and what can customers expect?
María López: Our digital-first approach is central to our strategy in Ireland. We aim to provide seamless online banking services that cater to the evolving needs of modern consumers. With 300 employees, two-thirds based in Carrick-on-Shannon and the remainder in Dublin, we are well-positioned to deliver innovative digital solutions. Customers can expect a user-kind platform, rapid access to services, and personalized financial products that meet their needs.
Archyde News Editor: Regulatory approvals are crucial for such expansions. Can you elaborate on the steps bankinter has taken to ensure compliance with Irish and European regulations?
María López: Absolutely. We have secured the necessary authorizations from the European Central Bank (ECB) and Spain’s central bank, Banco de España. We have also been working closely with the Central Bank of Ireland since announcing our plans in april 2024. Our customers can rest assured that their rights and protections will remain intact under the new structure. We are committed to adhering to all regulatory requirements, including the Consumer Protection Code and the General Data Protection Regulation (GDPR).
Archyde News Editor: This marks the first entry of a traditional overseas lender into the Irish retail banking market since 2005. How does Bankinter plan to differentiate itself from previous entrants who eventually exited the market?
María López: Our strategy is fundamentally different. We are not just entering the market; we are integrating our existing operations under the Avant Money brand and transitioning to the Bankinter name. Our focus is on long-term growth and sustainability. by leveraging our digital-first model and expanding our product portfolio, we aim to offer superior services that meet the needs of Irish consumers. Additionally, our commitment to regulatory compliance and consumer protection sets us apart.
Archyde News Editor: What are the next steps for Bankinter in Ireland, and how will you communicate these changes to your customers?
María López: Initially, we will operate under the Avant Money brand before transitioning to the Bankinter name. our immediate focus is on expanding our product offerings and enhancing our digital platform. We will be communicating further details to our mortgage borrowers in the coming weeks. Our goal is to ensure a smooth transition and provide our customers with all the information they need to continue enjoying our services without any disruption.
Archyde News Editor: what does Bankinter’s entry mean for Irish consumers,and how will it impact the banking sector?
María López: Bankinter’s entry is expected to inject much-needed competition into the Irish banking sector. This competition will likely lead to better rates, innovative products, and improved customer service. For consumers, it means more choices and greater adaptability in managing their finances. We are excited to bring our expertise and digital-first approach to Ireland and look forward to contributing to the growth and development of the country’s retail banking industry.
Archyde News Editor: Thank you, María, for sharing these insights. We look forward to seeing Bankinter’s impact on the Irish banking landscape.
María López: Thank you. We are excited about this new chapter and are committed to delivering exceptional services to our Irish customers.
