Irish banks partner to set up new digital service

Four of the biggest banks operating in the Irish market are joining forces to launch an instantaneous digital payments app that they hope will help them fend off the threat posed by new payments platforms, such as Revolut.

Bank of Ireland, AIB, Permanent TSB and the Irish arm of Belgian bank KBC have come together to set up Syntech Payments, a joint venture company to oversee the project. Ulster Bank, whose future in the Irish market has been cast into doubt recently, is not involved in the project.

Syntech this week provided notification of the venture to the Competition and Consumer Protection Commission (CCPC), which has launched a preliminary investigation into the plan under competition rules.

The Banking & Payments Federation Ireland, the main industry group for the financial services sector, confirmed that Syntech was connected to the planned launch of a “multi-banking payment app that will enable Irish users to send and make payments in real time”.

Syntech was established in September 2019, according to records in the Companies Registration Office. It is unclear from the filings so far whether the banks have an equal stake in the venture, or whether shareholdings are allocated on a pro-rata basis according to the banks’ market size.

Mainstream banks in several other European countries are planning digital payments apps to counter the challenge posed by the new platforms. For example, Credit Suisse last September announced it would launch its CSX app.