Irish banking shake-up: Monzo launches as PTSB deal signals new competition for traditional banks

New entrants and digital disruption are set to intensify competition, forcing Ireland’s traditional banks to adapt or risk losing customers

Changes in the Irish banking sector come as a number of changes are taking place across the rest of Europe which could force many of them to adapt to new systems and initiatives

The banking sector in Ireland saw a sizable shake-up this week with a pair of announcements which will see two new entrants into a pretty concentrated market including an agreed sale of PTSB to Austrian banking group BAWAG as well as the launch of Monzo, a leading UK digital bank.

The sector has been starved of actual competition in recent years. The departure of KBC and Ulster Bank in 2023 reduced the number of traditional banks for customers down to three but with PTSB significantly smaller than its two main competitors Bank of Ireland and AIB.