Low levels of switching repelling banks from market, says competition watchdog

The CCPC said that there are no indications that a full service large retail bank is likely to enter the Irish market in the near future.

Switching activity has increased due to Ulster Bank and KBC departing the market in the Republic, but overall levels are low. Picture: Brian Lawless

Low levels of retail bank switching activity is creating a barrier for new players to enter the market in the Republic, leading to an uncompetitive environment, said the competition watchdog.

The Competition and Consumer Protection Commission (CCPC) said that these low levels are due to Ireland’s laborious switching process and consumers becoming too familiar with existing banks, creating a deterrent for new ones to enter.