FinTech - Choosing Ireland as a location for your business
Given London’s historic relationship with the global financial industry, it is no surprise that the city has become a popular destination for the Fintech industry. However, the UK’s decision to leave the EU has created an environment of uncertainty. The Financial Services Governance Risk and Compliance Technology Centre (GRCTC) found that the main drivers involved in choosing a location for FinTech are;
- Funding availability
- People/talent availability
- Regulatory environment
- Proximity to global players
2017 has seen a large increase in funding for the UK’s FinTech sector. Recent reports of £825million being invested since January 2017, a figure double the amount raised in the same period in 2016, would appear to signal that London is in a good position with regards to funding. Some have attributed this sharp increase in funding to the weakness of the British pound, while others have attributed it to the quality and strength of the FinTech industry in London. Regardless of the reasons, funding does not seem to currently be an issue for London’s FinTech industry.
CONCERNS FOR LONDON
- People/talent – The FinTech industry in the UK employs over 60,000 people. Its access to the EU’s labour market, a market rich in software developers, has been a major contributing factor to its success. Losing this access could spell disaster.
- Passporting – a process which allows a company registered in one EEA country to open in, or sell into, others without having to access additional authorisations. Whether or not this issue will be resolved overtime remains to be seen. In the meantime, it creates uncertainty for the companies in the FinTech sector, an uncertainty they can avoid by relocating their operations.
- GDPR – With the UK no longer involved in the new data protection regulations coming in to play in May 2018, data may be perceived as less secure in the UK than it is in EU member states.
OPPORTUNITIES FOR IRELAND
- Ireland has its own rich talent pool in term of employment. In addition, it has access to the EU’s labour market.
- Passporting is not an issue for companies based in Ireland.
- Data should be more secure in Ireland, than it is in non-EU member states, when the new GDPR regulations are implemented in May 2018.
Further evidence to suggest that Ireland is a good place to do business is highlighted by the fact that nine out of the top fourteen tech companies in the world have based their European headquarters in Ireland and the UK. How many will stay in the UK post-Brexit remains to be seen.
IDA Ireland CEO Martin Shanahan illustrates the benefits of doing business in Ireland.
With a number of FinTech companies having set up regional offices in Ireland this year, it looks like the industry will continue to grow. If you are looking to set up a company in Ireland, get in touch with us using the form below: