Ask 4: Promote competition in banking

We need more competition in banking services for households and businesses, including essential financial products like current accounts, savings accounts, personal loans, mortgages, and business banking products.

Why it matters

While there have been new entrants into some banking markets such as loans and mortgages, there are only two ‘full service’ banks left (AIB and Bank of Ireland), along with a smaller third player (PTSB).  This means banks are less motivated to compete and attract customers with better prices, services, or innovation. This might lead banks to be slow to: - raise deposit rates to attract savers - lower interest rates charged on loan products - improve customer service, introduce new products, or to innovate.

Switching mortgage can be difficult, expensive and take a lot of time. However, it can also save consumers a lot of money.

When customers can easily switch from one provider to another, businesses work harder to keep them. If switching were simpler for customers, it might encourage new providers to enter the market. This would mean more competition in banking and better prices for customers.

How we can do it

• As regulator, the Central Bank plays a crucial role in ensuring a competitive market for financial services. New legislation means that the Central Bank will need to consider the effect on competition and consumers of new rules and regulations.
• The Central Bank, the Department of Finance and other bodies involved in the mortgage market should consider what more can be done to improve the mortgage switching process for consumers. The revised Consumer Protection Code (which came into force March 2026) should help more consumers to identify opportunities to save money on their mortgage. 
• The CBI should review how lenders inform consumers about their options. . The aim should be to make switching easier and quicker. I

The Central Bank should report levels of switching to assess the success of strategies to increase switching rates and deliver a well-functioning market.

More reading

View the CCPC money tools.