Financial Technologies or Fintech is currently one of the fastest growing industries in the world, with investment in Fintech companies, growing from $50.8 billion to $111.8 billion worldwide in 2018.
In this blog we set out some of the key advantages relating to setting up a Fintech company in Ireland and highlight some of the Fintech leaders who already call Ireland home.
Why Ireland for Fintech?
Governmental organisations such as Department of Finance, Enterprise Ireland and IDA Ireland are currently prioritising the growth of Fintech in Ireland. These organisations focus on assisting foreign companies in making seamless expansions into Ireland and also help companies to take advantage of the local skilled workforce and in accessing EU talent.
Currently the Fintech industry employs over 7,000 people in Ireland. However, Ireland is home to over 400 companies operating in financial services, who employ more than 40,000 people locally. In addition, the technology sector employs over 105,000 people, and those working in financial services and technology have the transferable skills to move into Fintech.
The industry regulators in Ireland, the Central Bank of Ireland (‘CBI’) are also taking a proactive approach in assisting the growth of Fintech in Ireland by launching an innovation hub to allow firms to engage with the CBI in addition to an industry engagement programme.
From a corporate perspective, there is also a competitive corporation tax rate of 12.5% and a large double taxation treaty networking promoting the ease of doing business in Ireland. Ireland is also the only English speaking country in the Eurozone and provides full access to the EU marketplace.
US and UK Firms Expansion Into Ireland
In recent years, many US leaders in Fintech such as Equifax and Kabbage have come to Ireland to take advantage of the benefits mentioned above. Many more have used Ireland as their European hub with programmes such as the Ireland Strategic Investment Fund ,making significant investments into US Fintech companies, including Motive Partners and Muzinich, in order to support their expansions into Ireland.
Closer to home, Ireland is one of the natural destinations for UK based Fintech companies preparing for Brexit. Optal, one of Europe’s fastest growing Fintech firms, has opened its Dublin office and is availing of EU passporting rules in order to offer its services across the other EU member states. Soldo, a London-based Fintech company obtained an e-money license to process payments for EU based users post Brexit.
Equally, San Francisco based Stripe have also recently signalled their intentions to expand their operations in Ireland to by obtaining their e-money license from the Central Bank in order to service their European clients.
Think Fintech. Think Ireland and Smart MBS.
With a highly skilled workforce in the industry, Ireland offers the perfect destination to establish your European hub.
SMART MBS, through our parent company Pearse Trust, has over 35 years’ experience helping overseas companies establish in Ireland and can provide a complete business solution to establishing your Fintech presence in Ireland.
If you are wishing to expand into Ireland, please complete the details below and we would be happy to arrange a free consultation with you.