A lobby group advocating for Ireland’s financial services sector has urged the government to create a dedicated physical center for fintech companies.
At the association’s annual dinner, Joe Heneghan, chairman of Financial Services Ireland (FSI), emphasized the growing consumer demand for digital services, stating, “Every firm operating in financial services is now a fintech firm. Ireland can be at the forefront of fintech, and we believe that establishing a dedicated physical space will be a pivotal part of that.”
Heneghan envisions this fintech hub as a “vibrant center for innovation, collaboration, and growth, open to everybody in the industry,” serving as a “tangible, bustling ecosystem” for fintechs, established companies, and regulators to exchange ideas.
He added that the hub would ultimately “deliver jobs, growth, and investment for Ireland.”
Additionally, the FSI has expressed support for the Central Bank of Ireland’s recent announcement to establish a regulatory sandbox, which Heneghan believes will facilitate greater flexibility for firms to experiment in a secure environment, representing a “level shift” in the financial services sector.
This push comes at a time when funding for Irish fintechs is reportedly declining. A KPMG report highlighted a drop in fintech funding during the first half of 2023, attributing this trend to rising interest rates, inflation, and geopolitical tensions.
The FSI has been vocal in advocating for increased state support for the fintech sector. A survey conducted by the association in September revealed that 72% of respondents felt there was insufficient funding for innovation, while 64% indicated that more was needed for growth.
While the establishment of a national fintech hub remains uncertain, several banks and asset servicing companies have announced plans to develop their own initiatives. For instance, in May, BNY Mellon revealed plans to invest €8 million in a digital R&D hub in Dublin, focusing on AI and data analytics for its global client base.