Spanish banking giant to enter market in huge boost for competition
The Spanish bank that owns Leitrim-based mortgage lender Avant Money has confirmed it is entering the Irish banking market.
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Avant Money (Bankinter) to enter Irish banking market
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Brendan Burgess
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The lender will passport banking services, including a deposits offering, into the Republic under its Spanish licence, it said in a statement on Friday morning, which confirmed an earlier report by The Irish Times online. The bank will be digital based, rather than using the traditional branches model. The business will operate under the Avant Money brand.
The main guy behind this is Brian Lande ex-BoI and he was the reason Avant successfully entered mortgage market. Top class individual.
They could have passported for mortgage business but did not. This new structure does not of course reflect in any way on CBI er...
They could have passported for mortgage business but did not. This new structure does not of course reflect in any way on CBI er...
Good news, but it will be interesting to see what actual difference or "shockwaves" they make.
Aside from already their established mortgages....Deposits? Current accounts? Business banking? Will need some better rates and draws to entice significant numbers over I would imagine.
Aside from already their established mortgages....Deposits? Current accounts? Business banking? Will need some better rates and draws to entice significant numbers over I would imagine.
Brendan Burgess
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It will be an online presence, so it would have to have very good telephone support to be an alternative to the Irish banks.
I certainly don't think that they could be used for business banking.
Brendan
I certainly don't think that they could be used for business banking.
Brendan
The Bankinter offering in Spain might provide a clue as to what they are going to offer here.
In Spain:
Bankinter offer an array of products with different and complex T&Cs.
Bankinter offer free banking provided you adhere to T&C's including salary deposits and account usage conditions.
Bankinter pay 5.00% AER on the first 10k but only for the first year, thereafter Bankinter pay 2.00% AER on the first 10k.
Different rates apply to youth accounts, broker accounts and non-salary accounts.
Different conditions apply with existing customers.
Bankinter offer 4.00% AER USD term deposits for 12 months. They don't seem to offer EUR term deposits.
Bankinter offer business accounts too with different conditions.
Seem to have a very heavy focus on their digital current account offering.
In Spain:
Bankinter offer an array of products with different and complex T&Cs.
Bankinter offer free banking provided you adhere to T&C's including salary deposits and account usage conditions.
Bankinter pay 5.00% AER on the first 10k but only for the first year, thereafter Bankinter pay 2.00% AER on the first 10k.
Different rates apply to youth accounts, broker accounts and non-salary accounts.
Different conditions apply with existing customers.
Bankinter offer 4.00% AER USD term deposits for 12 months. They don't seem to offer EUR term deposits.
Bankinter offer business accounts too with different conditions.
Seem to have a very heavy focus on their digital current account offering.
Yeah because they're so good
I assumed that Mr. Burgess was thinking in terms of the alternative online "support" offered by the likes of Revolut.
To be honest they are actually good versus what you get on chat with Revolut and N26. Bank of Ireland anyway, I've no experience with AIB.
Their credit card call centre is already miles ahead of the Irish banks.
Brendan Burgess
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Correct. Revolut and N26 are not substitutes for proper banks. Bad enough as AIB and BoI are, you can usually solve the issue.
I hope Avant offers telephone support.
Brendan
DublinTexas
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This is going to be nice, especially given how most banks here are charging unreasonable amounts of account maintenance fees for very little service.
Plus they could offer their credit card customers or their loan customers better conditions on current accounts etc. to capitalize on their existing customer base and with being a more traditional bank (even if passported) people know what they get from Avant Money!
Plus they could offer their credit card customers or their loan customers better conditions on current accounts etc. to capitalize on their existing customer base and with being a more traditional bank (even if passported) people know what they get from Avant Money!
DublinHead54
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Why? How often do people require telephone support for general banking?
Generally in my experience it is when something bad goes wrong and regardless of whether it is phone or online support there is generally not much can be done!
Good to see another service provider entering the market, but realistically doubt they will gain widespread usage as day to day banking for people. Revolut already have that hold in the digital space.
I do wonder how successful they'll be. Don't get me wrong I find their current products good and more competition won't go a miss. But have they missed their window.
The time to come in would have been a before KBC and Ulster closed. They could have hoovered up some of those current account refugees. But now people have moved to a pillar bank - if they wanted a bricks and mortar - or gone to a fintech - if they wanted better tech and cheaper banking.
But that's their concern I won't say no to a low/no-cost current account and high rate deposit account.
The time to come in would have been a before KBC and Ulster closed. They could have hoovered up some of those current account refugees. But now people have moved to a pillar bank - if they wanted a bricks and mortar - or gone to a fintech - if they wanted better tech and cheaper banking.
But that's their concern I won't say no to a low/no-cost current account and high rate deposit account.
If they offer free banking I could see them doing well. Lots of people just don't trust Revolut, N26, Bunq etc for their day to day banking. I agree though, doing it prior to KBC and Ulster Bank leaving would have definitely been a better time.
I wonder if the trust issue is more to do with a lack of branches. I'm not sure having a better phone service will convince many.
@Lightning mentioned it already but Free banking and a teaser deposit rate I would think.
Anyone remember Halifax offering 10% interest on their current account. Think there might have also been a cash incentive for opening an account. They were great days... Didn't end badly at all....
I remember the Halifax account interest being higher than 10%, and possibly reducing to 10% later. It was a much better rate then term deposits at the time. Then they left and I moved to PTSB for a rate of around 10%. I left PTSB when they stopped paying me to use their terrible account.
For me it does at least. It's why I went to EBS when KBC left. I heard way too many horror stories of Revolut freezing people's accounts and didn't want that to happen to my main account. To be honest, I actually prefer that they don't have branches. I hate being told I need to go into a branch to sort something that should be able to be done over the phone, email or online.
I think what puts people off using the likes of Revolut (in particular), N26, BUNQ etc as one stop shops for their banking requirements is the endless stream of horror stories about customers being unable to resolve issues. It's fine to use them for specific requirements (low value e-transactions, higher interest deposits with DGS for funds that are not required at short notice etc on the basis that if these services fall over and take time to resolve its not the end of the world, and you can always fall back to a legacy bank.
In the last 20 years I was with Ulster I think I was in a branch 4 to 5 times in total, most of which were to get rid of cheques I'd received. In the two years since I moved to AIB/BOI I think I've been in their branches on a max of two occasions. And my only visit to PTSB in the last 10 years was to open an additional term deposit a/c last year because they insist on you visiting them to do this and block you doing it online. I have zero interest in ever visiting a bank brach again.
If a new entrant comes along that offers a full set of banking services, with decent robust and reliable transaction systems and a good online interface, decent products and rates and acceptable charges, and supports this with decent online and phone support to get issues and queries resolved I'd have no issue moving over. But given the track record of banking in general and the long list of new entrants who rapidly became new exits it appears to be a tall order, especially as it needs to be profitable. I'll wish Avant the best of luck, but won't be holding my breath.