The recent developments in Ireland’s mortgage market has triggered significant changes. A large contribution to these changes is the exit of two major banks, KBC and Ulster, from Ireland. This has left a significant impact on the mortgage industry, affecting both consumers and the market. In this article, we will explore the positive and negative effects resulting from the shrinking mortgage market and assess the potential opportunities that businesses have during these changes.
A significant concern regarding the departure of the two banks is the decrease in competition within Ireland’s mortgage market. Reduced competition can have many unintended consequences that may be hard to recognize. One concern for the decreased competition is the fact that it may suppress innovation among industry players. Without the presence of competitive pressure it often leads to businesses not producing critically thought about products and services for their customers. In addition, without adequate competition companies could get too comfortable and this could be seen through companies offering higher interest rates and services that prioritize the company’s interests of customer satisfaction.
The Possibility of …