Ireland’s fintech sector is rapidly growing, attracting trade players and financial institutions looking to invest in the industry. The rise of payment companies and neo-banks has transformed the banking landscape, with big names like Mastercard, PayPal, and Stripe setting up shop in the country. This has given birth to a host of companies including online payments, cross-border transactions, payment gateways, digital banking, open banking, digital remittances, regtech, blockchain, and digital assets.
Despite a decline in venture capital funding, the market remains dynamic, with a lot of capital available to investors to invest in businesses. Moody’s analysts wrote in a recent report on VCs that global fintech funding fell 46 per cent from 2021 to 2022, but the competitive threat of financial technology companies to big banks has diminished over the past year as rising interest rates constricted funding.
Ireland’s talent pool of technically-enabled entrepreneurs has grown due to the existence of many tech multinationals in the country. Combined with a national focus on the STEM industries, it means that Ireland is producing many new fintechs at scale. In fact, the Irish fintech sector performed the best in 2022, with 23 per cent of total VC investment, followed by life sciences at 21 per cent and wider software at 19 per cent.
The existence of so many tech multinationals in Ireland has helped create a talent pool of technically-enabled entrepreneurs who are now creating their own start-ups. This bodes well for the future of fintech in Ireland, as the rise of fintech has given a boost to the Irish economy and has opened up new opportunities for investors and entrepreneurs.
In conclusion, Ireland has emerged as a key player in the global fintech market, with the growth of payment companies and neo-banks changing the banking landscape of the country. Despite a decline in venture capital funding, there is still a lot of money available to investors, making it an interesting time to be in the fintech space. Ireland’s talent pool of technically-enabled entrepreneurs, combined with a national focus on the STEM industries, means that the country is producing many new fintechs at scale, making the future look bright for fintech in Ireland.
