Four of the main digital challenger banks operating in Ireland will not send representatives to an Oireachtas committee on Wednesday examining regulation of the sector, despite being invited to make statements and answer questions from TDs and Senators.
Revolut, Bunq, N26 and Monzo were invited to discuss the regulatory oversight of the so-called neobanks.
The Irish Times understands that Revolut and Monzo said they would be able to attend the Oireachtas Joint Committee on Finance at a later date, potentially in January. However, the committee did not receive responses from the other banks.
Bunq, the Dutch fintech that entered the Irish market in 2022, could not be reached for comment on Tuesday. A spokeswoman for German digital bank N26 said she was unable to confirm receipt of the committee’s invite.
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“N26 supports fair and proportionate regulation that encourages innovation while ensuring strong consumer protection,” she added.
“The company primarily engages with regulators in Germany, France, Spain, Italy, where its main markets and offices are located, as well as at EU level. We are always open to constructive dialogue with policymakers where we are the appropriate point of contact.”
UK-based Monzo, meanwhile, said it does not comment on “specific meetings or discussions”. A spokeswoman added: “We are committed to engaging with policymakers on matters relevant to Monzo and the wider industry.”
The finance committee will hear from representatives of the Central Bank or Ireland and the Banking and Payments Federation Ireland.
Central Bank deputy governor Colm Kincaid is expected to tell TDs and Senators that the digitalisation of the financial system has brought many benefits to consumers, but that it has also brought new opportunities for criminals to exploit.
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“It has resulted in variations and gaps in the nature and quality of service consumers receive, in particular when things go wrong,” he is also expected to say in his opening remarks.
Mr Kincaid will also tell the committee that the central bank has engaged with large technology platforms in the Republic “to get them to implement additional controls to combat unauthorised financial service providers”.
Digital banks have gained a significant foothold in the Irish market in recent years, with the traditional banks struggling to keep pace with customer trends.
Bloomberg reported earlier this year that Wall Street banking giant Goldman Sachs is considering launching its online retail bank Marcus in the Irish market in an effort to get access to billions of euro of deposits from domestic households.
The group has reportedly held preliminary talks with regulators in recent months on a potential widening of the Marcus brand into the Republic, which continues to be dominated by the three domestic banks.
