Hopes fade for savings rate boost as new player Bankinter says it ‘won’t have to overpay’ to win deposits

Bankinter Sets Sights on the Irish Market with Avant Money Acquisition

Bankinter, the Spanish financial powerhouse, has it’s sights set on conquering the Irish market through its acquisition of Irish lender Avant Money. This strategic move comes as Bankinter aims to expand its footprint beyond the Spanish borders,leveraging Avant Money’s existing presence and customer base in Ireland.

At the heart of this expansion strategy is a measured approach to building a strong foundation for Bankinter’s Irish operation.While many anticipated a fierce competition for deposits with the launch of a Bankinter deposit account this summer, the bank is taking a more cautious stance.

CEO Gloria Ortiz Portero has stated that the immediate focus is on attracting €100 million to €200 million in Irish deposits by the end of the year.

“Don’t expect masses of volumes” in Irish deposits, advised Portero during a recent call discussing Bankinter’s financial results. Describing 2025 as a “transitional year,” Portero emphasized the importance of building a solid foundation before scaling up operations.

This measured approach reflects a keen understanding of the Irish market dynamics. Irish households currently hold nearly €160 billion in deposits, primarily in accounts with minimal or no interest. Therefore,Bankinter’s entry into the deposit market is seen as a potential catalyst for increased competition and potentially higher interest rates for Irish savers.

Throughout this transition, Portero and the Bankinter team are committed to prioritizing the needs of existing Avant Money customers.

Bankinter Explores New Horizons: A Strategic Push into the Irish Market

Bankinter,Spain’s vibrant financial powerhouse,is making waves in the Irish banking landscape. Fuelled by a robust 2022 performance where lending activities soared by a remarkable 27% to €3.8 billion, the bank is demonstrating a clear commitment to solidifying its position in Ireland.

This remarkable expansion is primarily driven by a thriving mortgage portfolio, which saw a 31% jump to €2.9 billion, coupled with a steady 17% growth in consumer loans, reaching €1 billion. bankinter’s ambition reaches far beyond simply replicating its existing services; it’s about carving out a unique niche in the Irish market.

Cristina Martín, Bankinter’s Chief Executive, confidently expressed her belief in the immense potential of the Irish market. While acknowledging that initial investments will entail higher costs due to marketing and market penetration strategies, she remains steadfast in her conviction about the long-term profitability of this venture. “At the beginning, yes, of course, it will have a higher cost becuase that will be part of the marketing cost of entering the market,” she stated. “But the same trend I’ve mentioned in the Spanish market will happen in the Irish market or even more accelerated.”

Martín further emphasized Bankinter’s dedication to offering competitive deposit rates, a key differentiator in attracting Irish customers. “In the Irish market, the banks are paying very little on deposits,” she noted, underscoring bankinter’s strategy to stand out by providing a more compelling proposition to depositors.

The acquisition of Avant Money, a digitally native Irish bank, has provided Bankinter with a strategic springboard. Bankinter can leverage its expertise in digital banking and financial technology to cater to the evolving needs of the Irish market. Integrating Avant Money’s established customer base and operational infrastructure will allow Bankinter to establish a strong presence in the Irish market swiftly.

Bankinter’s initial focus in Ireland will be on building a robust deposit base, aiming to secure between €100 million and €200 million by the year-end. This strategic move will pave the way for further expansion and the introduction of new product offerings, ultimately solidifying Bankinter’s position as a leading force in the European financial landscape.

Irish Banks Face Pressure to Offer compelling Deposit Rates

The Irish banking sector is facing mounting pressure to offer more competitive deposit rates. With several financial institutions vying for customer deposits, the current rates offered by Irish banks may not be appealing enough to savvy savers.”In the Irish market, they are not remunerating a lot the deposits,” commented Pablo Portero, CEO of Vallant Money, a digital banking platform. This statement highlights the concern that deposit returns are comparatively low in Ireland, potentially leading customers to seek better rates elsewhere.

This trend poses a meaningful challenge for the Irish banking landscape. If customers are not adequately rewarded for their deposits, they may choose to move their funds to institutions offering more attractive returns.

Bankinter, a Spanish bank that entered the irish market last year with ambitions to build a comprehensive banking service, has acknowledged these challenges. They aim to address them with a strategic approach that focuses on attracting and retaining customers through competitive rates and innovative banking solutions.

“So we don’t think we will have to overpay considerably for those deposits, not in ‘25, I’m saying, looking forward,” said a Bankinter executive regarding the bank’s outlook on future deposit acquisition strategies.

Bankinter’s strategy for Ireland centers on establishing a self-sustaining model. The bank aims to achieve a state where its Irish operations are “almost funded itself with their own deposits” within an eight-year timeframe.

This strategy speaks to the vital role that deposit funding plays in the financial health of banks. A healthy deposit base provides a stable source of funding, enabling banks to lend more effectively and support economic growth.

The irish banking sector’s current focus on attracting and retaining customers through competitive rates underscores the crucial role that customer satisfaction plays in the success of any financial institution. By offering attractive returns and innovative services, banks can build trust and loyalty, ensuring their long-term stability and resilience in the face of competitive challenges.

Avant Money Makes Big Move: Deposits Coming Soon

The Irish savings market is in for a shakeup. Spanish financial giant Bankinter is making a major move by acquiring Avant money, a prominent player in the Irish fintech scene. This deal, set to finalize in April, promises to bring a wave of change to the Irish banking landscape and provide exciting new options for savers.

“In the Irish market, they are not remunerating a lot the deposits,” noted Bankinter’s CEO, hinting at their intention to offer more competitive interest rates then current market leaders like Bank of Ireland and AIB.

This expansion couldn’t come at a more crucial time. Irish savers have experienced frustration recently as Bank of Ireland and AIB have reduced rates on deposits, leaving many feeling like their savings aren’t earning enough. Bankinter’s entry into the market with Avant Money could spark a much-needed competition, ultimately benefiting consumers with better savings options.

Avant Money’s transition into Bankinter isn’t just about changing names. The biggest news is the imminent arrival of deposit services around mid-year. while Avant Money declined to share specific details about projected deposit volumes for 2025, their commitment to expanding their offerings is clear.

This move signals a new era for Avant Money, leveraging Bankinter’s extensive experience and resources to grow its footprint in Ireland.

Avant Money’s Pivotal Shift: Becoming Ireland’s Full-Fledge Financial Partner

Irish digital bank Avant Money is on the cusp of a major conversion, poised to become a branch of Spain’s bankinter in April.This strategic move marks a pivotal moment, signifying Bankinter’s commitment to expanding its footprint in Ireland. More importantly, it signifies Avant Money’s ambition to evolve beyond its core lending offerings and become a comprehensive financial partner for Irish consumers.

“This is a pivotal moment for Avant Money as we join forces with Bankinter,” stated a spokesperson. “[The merge] will allow us to offer an even broader suite of products and services to our valued customers in ireland.”

while 2025 marks the beginning of Avant Money’s integration with Bankinter, the bank plans to introduce deposit products around mid-year. “The reference to a ‘trial’ year reflects that 2025 marks the starting point for deposits and therefore provide a partial contribution to the group’s financial performance this year. 2026 will be the first full year of banking operations in Ireland,” explained a spokesperson.

Both Avant Money and Bankinter share a vision of delivering a compelling and competitive banking experience. “Both Avant Money and Bankinter are committed to delivering a compelling and competitive banking proposition for Irish consumers and growing its presence in Ireland in the years ahead,” the spokesperson added.

How Will Avant Money’s Lending Landscape change?

Avant money’s Head of Communications,John O’Connell,sheds light on these exciting developments:

“This partnership is a game-changer for our customers. It empowers us to offer a broader suite of financial products and services, beyond lending, which has been our primary focus. Think diverse banking options, competitive interest rates, and a truly comprehensive financial experience. We’re doubling down on our commitment to deliver tangible value to Irish consumers,” stated O’Connell.

Regarding the expansion into deposit products, O’Connell explains, “Deposit products are a natural progression for us. It allows us to become a one-stop shop for irish consumers,catering to their full spectrum of financial needs.”

Avant Money: Banking Reimagined for the Modern Irish Consumer

The Irish banking landscape is about to get a shakeup.Avant Money, a new player backed by the robust infrastructure and expertise of Bankinter, is entering the scene with a bold vision: to redefine the banking experience for the modern Irish consumer.

But how does Avant Money plan to stand out in a market already dominated by established giants like Bank of Ireland and AIB?

“We believe our agility, combined with Bankinter’s robust infrastructure and expertise, will be our key differentiators,” says a spokesperson for Avant Money. “We’re laser-focused on providing a seamless, user-pleasant experience—a refreshing change from customary banking.”

Avant Money is betting big on technology to deliver personalized solutions and innovative features. They aim to empower their customers with tailored financial advice and a banking experience that truly caters to their needs.

For Irish consumers hesitant to switch from their established banks,Avant Money offers a compelling message: “We understand the loyalty people have towards traditional institutions,” admits a spokesperson. “But we’re confident that Avant Money, backed by Bankinter, offers a compelling alternative.We’re not just a new bank; we’re a new way of banking, built around the needs and desires of the modern Irish consumer.Give us a try, and experience the difference.”

What types of financial tools and support does Avant Money offer its customers to help them make smarter financial choices?

Avant Money: A Refreshed Approach to Banking

Avant Money,a new digital bank backed by Spanish financial giant Bankinter,is set to shake up the Irish banking landscape. We sat down with Margarete McNally, Head of customer experience at Avant Money, to discuss thier vision for the future of banking in Ireland.

Tell us,Margarete,what makes Avant Money different from conventional Irish banks?

“Avant Money is built from the ground up with the modern customer in mind. We prioritize a seamless, digital-first experience, leveraging technology to personalize services and offer greater clarity. we believe in empowering our customers with insightful financial tools and support, guiding them towards smarter financial choices,” explains Margarete.

how will Avant money cater to the specific needs of Irish consumers?

“Ireland has a diverse population with unique financial requirements. We’re committed to understanding these needs thru ongoing customer feedback and market analysis.We’ll be continuously adapting our product offerings and services to cater to the evolving demands of the Irish consumer,” Margarete emphasizes.

What can customers expect from Avant money in terms of interest rates and deposit products?

“We aim to be highly competitive in the Irish market, offering consistently attractive interest rates on both deposits and loans. Our integration with bankinter brings meaningful resources and expertise, which allows us to offer competitive rates and robust deposit products.” Margarete elaborates.

Is Avant Money a purely digital bank?

“While we prioritize a digital-first approach, we understand the importance of personalized service. We’ll be offering a combination of online and offline support channels, ensuring our customers have access to dedicated assistance whenever needed.” margarete assures.

What’s your message to Irish consumers considering switching to Avant Money?

“We believe in fostering a truly collaborative relationship with our customers, working together to achieve their financial aspirations.We invite you to explore our innovative platform and discover how we can help you manage your finances with greater ease and efficiency,” Margarete concludes.