Spanish group Bankinter is soon to enter the Irish banking market

Spanish group Bankinter is soon to enter the Irish banking market.

The Irish banking market is set to receive a competitive boost with news from Spanish lender Bankinter that it plans to use its subsidiary Avant Money as an Irish banking branch.

Bankinter, Spain's fifth largest bank and one of Europe's 50 largest banks, comes as banks such as KBC, Ulster Bank, Bank of Scotland, Danske Bank and ACC exit Ireland.

The group will offer services, including investments, under its Spanish license until the Irish permit is obtained. Bankinter already offers mortgages in Ireland under the Avant Money brand.The bank will be digital rather than branch based and will use the existing name. 

In a statement released on Friday morning, Bankinter said: "The establishment of the branch in Ireland will allow the bank to operate in the deposit market and subsequently expand into other financial products and services.

The entity is carrying out the administrative procedures required by Bankinter Ireland's constitution, including the acquisition of all the shares it owns from BKCF, the bank's customer entity, which comprises the share capital of Avant Money."Bankinter Group started operations in Ireland in May 2019 through Avant Money.

In September 2020, Bankinter incorporated the mortgage business, which has made very good progress in a few years.

Initially, the new business will begin by offering deposit products on top of existing mortgages, personal loans and credit cards, with the hope that other services will follow.The bank does not intend to apply for a full banking license from the Central Bank of Ireland, but will instead use its existing Bank of Spain and European Central Bank authorizations to offer services here under EU passporting rules."This decision paves the way for the strategic expansion of our business," said Niall Corbett, CEO of Avant Money.

"This is a clear commitment from Bankinter to Ireland as we look forward to bringing more choice, value and competition to the market. This will allow us to better meet the needs of our customers by leveraging Bankinter's innovative products and customer experience.

"Through the expansion of our operations and offering we see potential for future job creation, contributing to economic development and employment opportunities in Ireland.

The bank currently operates in Spain, Portugal, Ireland and Luxembourg.Its loan book in Ireland is currently worth €3.3bn, of which €2.4bn is mortgages and €900m in personal loans.In the first three months of the year, the Irish business made a pre-tax profit of €9m and currently has 200,000 customers here. Bankinter posted a net profit of €845 million in 2023, up 51% from the previous year.