The number of fintech companies located in Dublin is growing every year, with growing numbers of investors following closely. According to a report by KPMG, over the past five years, the average Irish fintech investment has been roughly $100 million for the first half of each year. Over the first half of 2021 Irish fintech companies tallied a record $900 million in transactions, equity, and venture capital. This new $900 million record breaks the previous record of $700 million, set in 2018, and blew the $328.6 million from 2020 right out of the water. Globally, fintech funding is also following the same increasing trend as seen here in Ireland. Recently, global fintech funding has soared to new heights in the first half of 2021, reaching $98 billion and surpassing the $87.1 billion recorded in the second half of 2020.
This record-breaking $900 million investment into Irish fintech, is partially due to the acquisition of the financial services firm Fenergo. Fenergo is a Dublin-based, fintech software company that focuses on providing solutions for financial firms, working with some of the biggest banks and insurers across the world including Bank of China, Credit Suisse, IBM, Mizuho, and National Bank of Canada. Combining their previous experience and reputation with their 17% revenue increase to $107 million (for the financial year ending in March 2021) in the middle of a global pandemic, it’s not difficult to understand the attraction they hold in the eyes of investors. In May 2021, two venture capital firms (Bridgepoint and Astorg) and the current management bought out a majority stake rumoured to be roughly $600m, in a deal that valued the company upwards of $1bn. The two VCs have an accredited investment history, with experience in the B2B services and software industries.
The Dublin fintech market is gaining maturity, evidenced by increasing funding and acquisitions. The Fenergo acquisition shows how Irish fintech is starting to gain global recognition, and as a result of this, is delivering impressive results. These late-stage funding rounds and acquisitions show the growth and hold Irish fintech is taking in the global market.
As Dublin increases its presence in the fintech market, we should expect to see investments into fintech increase year after year. Since the onset of the pandemic in 2020, we’ve seen a large increase in the digitization of businesses and critically important consumer-facing processes. Fintech companies now have the chance to capitalise on this digitization process due to consumer demand shifting towards more Covid appropriate payment, work, and communication methods. Because of this new shift we are experiencing, interest in investment in the fintech space has increased exponentially, with the acquisition of Fenergo being a prime example.
Another fintech company capitalizing on this shift is OnlineApplication. OnlineApplication’s a loan origination system that allows homeowners to apply for a digital mortgage, and due to this digitization, has exponentially decreased the time for all parties involved. Mortgage tech tools such as OnlineApplication’s system are a perfect example of how fintech companies can cater to consumer demands for ease, convenience, and a superior experience. Through the use of digital mortgage approvals, OnlineApplications services remove multiple pain points for the potential homeowner, mortgage broker, and lender all while reducing time, costs, risks, and hassle.
What other fintech companies do you see capitalising on this shift in consumer demand?
- Interested in learning more about how Online Application can help improve your mortgage business? Contact us for a free demo or consultation: https://calendly.com/sc--oa
- Want to learn more about the Fenergo Acquisition? Click the links below to read more: