Avant Money (Bankinter) to enter Irish banking market

presidenttttt said:
is the situation really that good for the core irish banks, I always understood the inability to get the asset back without war and peace for years was a major turn off for mortgage competitors ?
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I think it is - I think they might be the only investable banks in the whole EU....Poland perhaps is a close 2nd....pretty consolidated market there too but not many get anywhere near the level of consolidation and deposit concentration such as the Irish banks in a country with low political risk (despite what you read in da papers!)

In terms of the inability to take custody of an asset in default - its just another barrier to entry for a competitor.....nobody likes hotel california situations with their lending book.....but the real barrier IMO was demonstrated during the uptick in European wide mortgage rates.....the deposit beta in Ireland (the need to pass through interest rate increases to retain deposits) was essentially non-existent here because of the deposit franchise these guys have.....in return for that low deposit beta...the Irish banks took very modest mortgage rate increases..we've seen the graphs we went quickly from having some of the highest rates in Europe to being in the bottom third....you could argue they were doing it knowing that they'd be in the political windfall tax crosshairs if they didnt pass on rate increases to depositors but totally slammed mortgage holders.....being more nuanced I think they didnt do it because they are NEVER letting their duopoly position go again.......if they keep mortgage rates relatively low here...they maximize their funding cost advantage......and it creates a relatively unattractive market to enter for a foreign competitor.

They would be wise to generate a 15% RoE through the cycle and no more......they've got a good thing going in the Irish market.....to over-earn here would be to put a target on their back from a domestic poltical perspective but also to attract foreign competitors back in.
 
TLO said:
EBS is the hidden gem in the current account market. Responsive call centre staffed by humans based in Ireland, no fees, nationwide branch network, and an online offering that is so antiquated that it doesn't lend itself to online scams. Think about it, you never hear of an EBS customer being scammed.
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They're not scammed because they're too smart.
 
TLO said:
EBS is the hidden gem in the current account market. Responsive call centre staffed by humans based in Ireland, no fees, nationwide branch network, and an online offering that is so antiquated that it doesn't lend itself to online scams. Think about it, you never hear of an EBS customer being scammed.
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That sounds very attractive. I eventually managed to open a new account after Ulster left. I didn't think of the EBS, I tried PTSB who were horrendous to deal with and went with BofI who were also difficult to open an account with. But they charge 6Euro a month for each account. I might check out EBS.

Very good to know about the difficulty scammers have with EBS, as a person who is getting older that might suit me very well. I am terrified of my BofI app where I can with the swipe of a button and 6 numbers transfer sums so easily.
 
I don't understand the comparisons over this new bank Interbank/Avant with the likes of Revolut.

Competition is good. We were back to the 2 banks having the lions share of the market again. And from my past experience with them both in cahoots with each other.

This new bank is a very welcome development. Much needed. And as they are a 'pillar' bank it is something that interests me.

www.irishtimes.com

Q&A: What does Bankinter move to Irish market mean for me?

New player in the sector looks like good news for consumers as it should lead to increased competition
www.irishtimes.com www.irishtimes.com

Bankinter is a leading Spanish banking group. It is a top 50 European bank operating in Spain, Portugal, Ireland, and Luxembourg.
 
RTE and Irish Independent this week reported on Bankinter's results and provided some small references to their ongoing work to offer deposit products here.

www.rte.ie

Profits at Bankinter's Irish arm Avant rise 20% to €20m

Profits at the Irish operations of Spanish lender Bankinter rose by 20% in the first half of the year.
www.rte.ie www.rte.ie

"The current plans of the Bankinter Group involve the launch, staggered over time, of a consumer-oriented digital bank that will allow Irish consumers to expand the offering of savings products, with the possibility of subsequently extending it to other financial services," it said in its results presentation today."

Seems to be hinting further at a current account offering along with the deposit offer.

The results presentation also makes reference to their Evo Banco platform being a company focus. Might be a hint as to what is to come too.

Hopefully the CBI approves the Avant/Bankinter deposit taking/passporting soon.
 
The Irish Independent reports:

"It plans to launch as full service bank early next year when Avant Money will become a branch of the Spanish bank. By the second half of next year it aims to offer deposit products."

I guess that means current account product in H1 2025 and deposit products in H2 2025.
 
RTE says: "Initially the new business will begin with offering deposit products".

Hmmmm. Prior reports said current account product in H1 2025 and deposit products in H2 2025.
 
Lightning said:
RTE says: "Initially the new business will begin with offering deposit products".

Hmmmm. Prior reports said current account product in H1 2025 and deposit products in H2 2025.
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Look at all the hassle and bad press Revolut gets for its “current account” product despite it’s IT being market leading - fraud, missing payments etc.

Maybe Avant have decided current accounts (and of course debit cards) aren’t worth the trouble.
 
I interpret 'full banking service' to mean current account, deposit accounts (demand/term), debit and credit cards, mortgages etc...?
 
Thomas1 said:
Look at all the hassle and bad press Revolut gets for its “current account” product despite it’s IT being market leading - fraud, missing payments etc.

Maybe Avant have decided current accounts (and of course debit cards) aren’t worth the trouble.
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Revolut's very online model leaves it open to such problems - if Avant have announced entry surprised they've not already done so, but it took KBC at least a year in my recall from time spent contracting there to get the technical side in order for current accounts.
 
lff12 said:
Revolut's very online model leaves it open to such problems - if Avant have announced entry surprised they've not already done so, but it took KBC at least a year in my recall from time spent contracting there to get the technical side in order for current accounts.
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I remember having a KBC (IIB?) mortgage for a few years before opening a current account with them.
 
Well looks like they are starting to execute the needed changes to enter the market with more products:


Thank you for being an Avant Money customer. We would like to share some exciting news about how Avant Money will develop its customer offering in the Irish market.

Avantcard DAC, which trades as Avant Money, is part of Bankinter, one of Spain’s leading banks. Avant Money has begun the process to become the Irish branch of Bankinter. This means we will be able to introduce a wider range of banking products, building on our existing offering of credit cards, personal loans, and mortgages - promoting healthy competition in the Irish market.



What’s happening?

On April 1st, 2025, or shortly afterwards Avant Money will merge into a newly established Irish branch of Bankinter S.A. The legal ownership of all contracts, assets, and liabilities of Avantcard DAC will transfer to the Irish branch of Bankinter.



What does this mean for you?

There is no change to the terms and conditions of your account. Your account will continue to be managed and serviced just as it is today. Your repayment methods and account details remain the same. Your account details will transfer to Bankinter, and this is the name that will appear on your bank statements when you make payments to us.

Bankinter is authorised by Banco de España (the central bank in Spain) 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).

Any application you make to Avant Money, or any offer made by Avant Money to you before the merger occurs, shall be treated as an offer or application made to or by Bankinter after the merger.

Should you have an active payment protection policy (PPI) on your account, it will remain unaffected by the merger.



What do you need to do?

You don’t need to take any action now. We will continue to update you as we develop new products and services for our Irish customers.

Should you have any questions or would like more information, please visit https://www.avantmoney.ie/support/bankinter-faqs



Have you nominated a third party to act on your behalf?

If you've nominated a third party to act on your behalf in your dealings with Avant Money, please ensure they receive a copy of this communication.

Thank you for being a valued Avant Money customer and we look forward to supporting your financial needs into the future.



Yours sincerely,

Matt McGrath

Head of Avant Money Operations
 
Irish Times interview with Avant CEO here.

He is coy when asked about the next product line Avant Money is planning after deposits.

Current accounts, surely? “Absolutely, you could naturally think about current accounts, but right now we’re focusing on deposits,” he says.

How about business banking or investment products? “My passion is business and corporate, that’s my background,” he says, glancing nervously at an adviser in the room to gauge whether he’s gone too far. If only.

“Look, in time, would I love to have a full-service bank here? But that’s my own personal view.”
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Clear that deposits are next.

Seems like Avant are less enthusiastic about current accounts.
 
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