Irish fintech attracts nearly EUR €1bn over five years

Ireland's fintech sector has attracted almost €1 billion in investment over the past five years, according to a new sector report launched in Australia at an industry forum in Sydney.

The report, compiled by Enterprise Ireland using PitchBook data, found Irish fintech drew €266.3 million in investment in 2023. It described 2023 as the second-highest year for deal volume in Ireland's fintech sector over the past decade, even as European fintech venture capital activity levelled off.

The figures were presented at the Australia Ireland Finance Forum, which brought together industry leaders from both countries to discuss market conditions, regulation and cross-border business opportunities. Enterprise Ireland organised the forum with the Consulate General of Ireland NSW and IDA Ireland.

Enterprise Ireland has increasingly highlighted Irish fintech investment activity after being ranked among the top three most active European fintech investors in 2024. It said it focuses on early-stage companies.

Global services hub

Ireland's role as a base for financial services groups underpins the fintech sector's growth. The country hosts more than 400 international financial firms, including half of the world's top 50 banks, and more than 200 Irish-born fintech and financial services companies, according to the report findings shared at the forum.

Anna-Marie Turley, head of Enterprise Ireland's Fintech and Financial Services portfolio, said the report reflects the sector's breadth and highlighted research and development spending by firms supported by the agency.

Enterprise Ireland said its fintech clients invested more than €600 million in R&D between 2018 and 2023, with spending linked to areas such as regtech, payments, digital identity, sustainable finance and AI.

"Ireland's dynamic landscape of fintech companies, particularly in the areas of regtech, payments, digital identity, sustainable finance, and AI highlights the strength, innovation and diversity present in Irish financial services. Critically, there is a very strong level of R&D investment in the fintech space in Ireland. Enterprise Ireland's fintech clients have invested over €600 million in R&D between 2018 and 2023," said Anna-Marie Turley, head of Enterprise Ireland's Fintech and Financial Services portfolio.

The agency also pointed to a more difficult fundraising environment internationally, saying its investment strategy and state support for innovation were helping the sector remain resilient.

"With fundraising budgets tightening globally, Enterprise Ireland's strategic investments, and the Irish government's support for innovation, will help firms to scale further and ride out disruptions in the global trading environment. The Australia Ireland Finance Forum is an important platform to showcase the scale of fintech innovation from Ireland, which is delivering for a global industry," Turley said.

Australia links

Organisers positioned the Sydney forum as a platform for collaboration between the two countries' fintech ecosystems. Ireland and Australia both have large financial services sectors, export-oriented economies and established links between banks, insurers and technology suppliers.

The event drew entrepreneurs, investors, regulators and technology leaders, with a focus on partnership opportunities between the two markets. More than 17 Irish fintech companies participated, including Fenergo, Fexco, FINEOS and DAON, as well as Fundrecs, Quantmatics and Asora.

Tiarnan McCaughan, Enterprise Ireland's senior market adviser for financial services in Australia and New Zealand, said Irish firms had built relationships with Australian financial institutions and businesses, particularly across fintech and regtech.

"It's hard to overstate the strong the linkages in the financial sector between Australia and Ireland. Irish fintech and regtech companies have quickly made deep and resilient partnerships with Australian financial institutions and businesses. The VC activity Enterprise Ireland drives in the sector is a signal of our belief in this sector, and the Forum is bringing together all that success in Australia," said McCaughan.

Enterprise Ireland said the report, titled Ireland's Fintech Landscape, outlines market trends and investment flows in the sector. It expects further engagement between Irish fintech groups and Australian financial institutions to feature in follow-on discussions after the Sydney forum.