Dynamic fintech sector highlights the strength of Irish financial services

Irish Examiner

6 hours ago

Fintech has been one of the standout success stories of the Irish economy in recent years. According to FinTech Ireland, there are now about 300 indigenous fintech firms in the State, along with 140 international companies; together they employ some 7,000 people. A recent survey by the group noted that 42 per cent of firms report that they plan to raise additional funding, with 91 per cent planning to add to their employment this year.
Enterprise Ireland has been in the vanguard of supporting the sector, having assisted more than 200 firms and invested €90 million.
As Anna-Marie Turley, head of Enterprise Ireland's fintech and financial services portfolio, noted recently: 'Ireland's dynamic landscape of fintech companies, particularly in the areas of regtech, payments, digital identity, sustainable finance and AI, highlights the strength, innovation and diversity present in Irish financial services.' Critically, there is a high level of R&D investment in the fintech space in Ireland, she added, noting that Enterprise Ireland's fintech clients invested more than €600 million in R&D between 2018 and 2023.
Fintech is a broad church. The Fintech and Payments Association of Ireland (FPAI) says it embraces every area where technology and innovation meet in the financial-services sector, from payments, trading and foreign-exchange markets to big data, risk, compliance, business intelligence, consumer-focused currency exchanges and peer-to-peer lenders.
'In Ireland we have a deep heritage in growing financial services businesses in the International Financial Services Centre and an equally strong history in establishing and scaling Irish technology companies focused on foreign markets,' the FPAI says. 'We are lucky to have a diverse range of market participants who see fintech as the context for their own innovation or at least a source of innovation from which they can benefit.' Patrica Callan, director of the Financial Services Ireland group within Ibec, agrees that the fintech sector in the State has grown from a deeply embedded finance and technology skills base, much of it centred in Dublin.
'There's a convergence between the two and I think that the skills set is very important.' she says. 'What's also very important is that we are viewed as a very stable country with a strong regulatory environment. There are also good Government supports, including direct incentives from Enterprise Ireland, and an ecosystem that includes strong and experienced legal and accounting firms, so our overall proposition is excellent.' This diverse mix means fintechs can be very different beasts.
They include indigenous Irish early stage and scaling technology companies; indigenous Irish later stage technology companies; multinational technology companies with operations in Ireland; domestic financial institutions; international financial services companies with operations in Ireland; and venture capital and private equity investors, among others.
Laura Flood, PwC partner and council member of the FPAI, says the Republic's success in the fintech sector can be attributed to a confluence of factors including a well-educated talent pool; the presence of established financial services and tech companies that have nurtured a workforce equipped with essential expertise for fintech innovation and expansion; access to the EU, as well as close ties with the UK and US; along with the State's long-established position as a hub for international investment and favourable tax and R&D credits for start-ups and established firms.
Laura Flood, PwC partner and council member of the FPAI.
'Fintech plays a central role in Ireland's national financial services strategy,' she says. 'The sector benefits from significant government backing, including funding and incentives provided by organisations like the IDA and Enterprise Ireland. Ireland's membership of the EU grants fintech firms access to the single market, making expansion and scalability across Europe more seamless. Since Brexit, this strategic advantage has encouraged many international firms to establish their EU headquarters in Ireland.'
The State's open and transparent regulatory environment, guided by the Central Bank of Ireland, balances financial stability with innovation. The Central Bank's Innovation Hub helps firms utilising new technologies navigate regulatory frameworks and its Innovation Sandbox Programme, launched in 2024, works with companies in the early stages of development of innovative initiatives. Additionally, the demand for compliance solutions has fuelled the rise of businesses offering tech-driven regulatory management tools, says Flood.
'Ireland's fintech sector is experiencing remarkable growth, fuelled by continuous advancements in digital technology that are transforming financial services across the board,' she says. 'As automation, artificial intelligence and blockchain technologies become more integrated into everyday financial operations, the pace of innovation is set to accelerate even further.' This is a fast-moving and innovative sector, characterised by constant change and reinvention, so there is no room for complacency, Flood adds: 'Financial regulations are continuously evolving.
This requires Irish fintech firms to navigate increasingly complex rules and reporting requirements, while effectively managing their capital and maintaining an adaptable business model. The sector also faces intense competition, with various jurisdictions striving to establish themselves as fintech leaders. To remain attractive and retain business, Ireland must continue to innovate and offer compelling advantages.' Callan agrees. One proposal Financial Services Ireland has made is for the establishment of a dedicated fintech hub that would provide a tangible and visible symbol of the Republic's commitment to innovation in the sector. Examples of hubs of this nature include Station F in France, Level 39 in the UK, Stone & Chalk in Australia, and DIFC FinTech Hive in Dubai.
The hub, Callan explains, would be a physical location, providing firms with office space, a community of industry peers, learning opportunities, access to events and more, and could also house state agencies such as the IDA, Enterprise Ireland, the Department of Enterprise, Trade and Employment and the Central Bank of Ireland, to allow for regular dialogue and sharing of insights.