The financial technology (fintech) industry has seen rapid growth worldwide, in time with the rapid progress of technology itself. Examples of new products that have come with this trend are loan management software, crypto-currencies, and more. These products can be targeted for use by businesses as well as the average consumer, and together they led fintech to become a $200 billion industry worldwide in 2019; it is expected to be worth around $305 billion by 2025. The leader countries in fintech development as of 2020 include the U.S., the UK, and Singapore, with developing countries like China also expected to become major players in the near future.
However, Ireland may also have the potential to become a global fintech hub in the near future. Ireland’s pro-business governance makes it an appealing place for businesses looking to enter the industry. One aspect of this appeal is its low corporate tax rate of 12.5%. Additionally, its research & development tax credit of 25% makes it very friendly to tech companies and encourages continued innovation. Its double taxation agreements with many other EU members, meaning that foreign firms won’t be taxed again for earnings in Ireland, make it an even stronger proposition for international tech companies
Beyond its healthy business environment, Ireland also has an ample pool of talent in tech development and innovation. Its workforce is highly educated, and local expertise in technology makes it conducive to the fintech industry in particular.
Lastly, Ireland already has a healthy fintech ecosystem in place. $1.3 billion have been put into fintech development According to Enterprise Island, a part of the Irish government which itself has invested substantially in the burgeoning industry, the country’s fintech exports reached €829 million in 2018, an increase of about 17%. As of 2020, six Irish fintech firms are in the Regtech 100, a yearly list of the most innovative fintech firms in the world.
With all this in mind, it seems apparent that Ireland is in the perfect position to become a global leader in the growing fintech industry. Being very pro business, it is an appealing investment to both foreign and domestic fintech developers. The talent is there, and Ireland is already home to experts in technological development. It is already home to a strong fintech ecosystem, meaning that continued growth and investment are guaranteed. As the industry continues to grow, expect to hear more about Irish tech firms and Ireland’s place in the fintech world.
