Irish Fintechs Express Frustrations Amidst Limited State Support
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An Ireland’s Fintech Future report, conducted by Financial Services Ireland, a branch of the banking lobby group IBEC, discovered a significant challenge facing Ireland’s fintech industry.
This limited support from the state is seen as a substantial impediment to the country’s fintech sector’s growth and potential.
Irish Fintechs Raise Concerns About Inadequate Financial Support
A majority of those surveyed, about 72%, stated that they believed insufficient financial aid was not available for innovation. Additionally, 62% of respondents sensed that there was not enough funding to support the progress of their initiatives
The report also pointed out some other challenges encountered by the fintech sector. This includes the burden of adhering to regulations and the shortage of skilled workers.
Despite these difficulties, the study discovered that the firms surveyed, especially the newly founded ones, were generally optimistic. A significant 88% of startups expressed their desire to boost their earnings in a few years to come, with an average growth expectation of 72%.
For well-established firms in the industry, the figures were lower, with 73% expecting revenue growth and 17% anticipating growth in a significant way. Moreover, 70% of all fintech firms surveyed believed they would add more staff to their teams in years to come.
FSI director Fiona Callan stated that the survey outcomes indicate a positive outlook for the industry’s future. She further highlighted that there are significant impediments in Ireland to developing financial services companies and well-established ones transitioning to digitization.
Financial Services Ireland Has Put Forth Several Recommendations
The report is based on a survey by the UK investment company Finch Capital, which discovered a 28% reduction in funding for Irish fintech firms in 2022.
This decrease in financial backing for Irish fintechs is part of a more significant trend, with fintechs across Europe facing a substantial 70% decline in funds during the same year. These results highlight the challenging financial environment met by fintech companies in Ireland and Europe, which could affect their development and growth in the industry.
Based on the survey results, Financial Services Ireland has recommended several actions. The ideas include calling on the Central Bank to simplify the fintech sector regulation, seeking the government’s support for creating a fintech hub, and releasing a €1.5bn surplus from the National Training fund.
