Spanish bank Bankinter is to enter the Irish market and offer services to customers.
The group is seeking regulatory approval to establish a branch here with a "full banking licence".
It will offer services including deposits under its Spanish licence until it secures an Irish permit.
Bankinter, which already offers mortgages here under the Avant Money brand, is to acquire the entire shareholding of Avant Money previously held by a Bankinter subsidiary.
The change means all Avant Money's assets, liabilities, rights, obligations and legal relationships will be transferred to the new branch.
"It will continue the activities currently carried out by Avant Money in Ireland, with plans then to expand, initially, into the deposit market, following the necessary legal steps and regulatory approval," the company said.
At the end of the first quarter of 2024, Avant's mortgage portfolio stood at €2.4bn - 53% higher than a year ago.
'Expansion'
Avant Money CEO Niall Corbett said there is also potential for new jobs.
"Today's decision paves the way for the strategic expansion of our business," he said.
"This is a clear commitment to Ireland from Bankinter and we look forward to bringing even more choice, value and competition to the market.
"We see potential for future job creation through the expansion of our operations and offerings, contributing to economic development and employment opportunities here in Ireland," he added.
A Bankinter sign in Madrid, 13-9-21. Image: Panther Media GmbH / AlamyFinance Minister Michael McGrath said the announcement is significant.
"[It] is very welcome news for households, businesses and consumers, who are the real winners from increased competition," he said.
"In 2022, my Department carried out a review of the retail banking sector in Ireland.
"It recognised the need to protect competition in the retail banking market to best serve consumers’ interests.
"The intention of another European bank, Bankinter, to establish a branch in Ireland to provide a range of banking products is a very welcome development in that regard".
Minister McGrath added that the announcement is "also a vote of confidence in the strength of the Irish economy".
Avant Money says customers will not be impacted by the transition and the company will continue to provide cards, loans and mortgages through its existing channels.
The Irish banking sector has fluctuated in recent years after KBC Bank and Ulster Bank both left the market.
