The chairman of Financial Services Ireland (FSI), Joe Heneghan, has urged the Irish government to establish a dedicated physical centre for fintech companies, emphasizing the growing importance of digital services in the financial sector. Speaking at the FSI’s annual dinner, Heneghan highlighted the need for Ireland to take a lead in fintech, proposing the creation of a vibrant hub that fosters innovation, collaboration, and growth for all industry participants.
He envisioned the hub as a bustling ecosystem where fintech firms, traditional players, and regulators can exchange ideas, ultimately contributing to job creation, economic growth, and increased investment in Ireland.
Heneghan praised the Central Bank of Ireland’s recent announcement regarding the establishment of a regulatory sandbox, considering it a significant step that offers firms greater flexibility to experiment in a secure environment. The call for a national fintech hub comes in the context of declining funding for Irish fintechs, as indicated by a KPMG report citing factors like rising interest rates, inflation, and geopolitical tensions.
FSI has consistently advocated for increased state support for the fintech sector, emphasizing the importance of funding for both innovation and growth. While the establishment of a national fintech hub remains uncertain, several financial institutions, including BNY Mellon, have announced plans to develop their own fintech-focused hubs in Ireland. In May, BNY Mellon disclosed an €8 million investment in creating a digital R&D hub in Dublin, focusing on AI and data analytics for its global client base.