The future of Irish banking will be decided over the coming months

With the last remaining overseas retail banks set to leave, what does this mean for competition in Irish banking and how will it impact consumers?

The Competition and Consumer Protection Commission is also examining a proposal from Irish banks for their own payments app that aims to rival apps like Revolut and N26. Picture: iStock

The competitive landscape of the Irish retail banking market is set to change dramatically in 2022. The impending departures of both Ulster Bank and KBC would appear, on their face, to consolidate the market position of the only remaining incumbents – namely Bank of Ireland, AIB and Permanent TSB.

This follows the significant consolidation that previously took place in the banking sector a decade ago as a result of the 2008 crash. A core element of Ireland’s economic recovery was the creation by the then minister for finance, Michael Noonan, of the “pillar” banks system.