Historically, women have been underrepresented in the fintech industry. Over the past couple of years, we have begun to see this change across the globe, and more specifically, in Ireland. According to TechIreland’s 2021 Fintech Report, of all of the new Irish fintech startups since 2018, 29% are women-led. The same report stated that out of the 249 fintech companies in Ireland, 31 of them are led by a woman. Although this may seem like a small number, many of these women-led companies are new to the market, showing an upward trend of female fintech involvement. This trend highlights the overall health and growth we are seeing in the Irish fintech market.
Regarding the tech market in general, in 2020, Irish women-founded companies received €105 million in funding, while Dublin-based female-founded companies received more than 46% (€48 million) of total tech funding. This €105 million marks the first time Irish Female Founders raised more than €100 million in funding during a twelve-month period. Globally, female-founded companies took a hit during the pandemic, seeing a decrease in overall VC funding. However, Irish women-founded firms show a direct inverse of this global trend, with their €105 million marking a significant increase from 2019 while outperforming other woman-led companies globally. This increase and outperformance in funding highlight the overall growth and health of the Irish fintech market.
One of the Irish woman-led companies highlighting the health of the Irish fintech market is Payslip. Founded in 2016, Payslip is a fintech software company that helps multinational companies manage their payroll efficiently and effectively across multiple countries. Payslip received an additional €8.3 million in a Series A financing round in early 2021. Fidelma McGuirk, Founder, and CEO of Payslip hopes to create an additional 150 jobs here in Ireland after this new investment, catching the attention of Tánaiste Leo Varadkar, saying; “These 150 new jobs across Dublin and Westport are highly skilled positions and are a real vote of confidence. Despite the challenges posed by the pandemic, Ireland's tech sector continues to perform very well,"
Varadkar was correct to point out the overall health and potential the Irish tech sector has. In the post-pandemic world we find ourselves in, changes in consumer demand are no surprise. Consumers now want modern, digital tools and processes, opening doors for Irish fintech companies while leaving room for plenty of growth. Living in a post-Brexit world puts Ireland in a great position to see growth in the fintech market, making it easier for financial institutions and firms to make Dublin their base for EU operations. With Dublin becoming this new hub of access to the EU, it promotes healthy competition and driving innovation. The modern fintech market in Ireland is primed for takeoff, as there are opportunities rounding every corner.
An example of one of these opportunities is the traditional mortgage and bank lending system in Ireland, which isn’t wired for the digital world we are shifting towards. This opens a huge door for Irish mortgage tech firms. A company already taking advantage of this opportunity is OnlineApplication. Our intuitive loan origination system allows prospective home buyers to upload the required documents and complete the digital mortgage application process in just minutes. OnlineApplication’s software saves brokers, lenders, and potential homeowners time and effort by automatically approving lendees through machine learning and AI. OnlineApplication helps reduce cost and effort for all parties involved in the mortgage process.
What other companies do you see driving growth in the Irish tech market in the coming year?
- Interested in learning more about how Online Application can help improve your mortgage business? Contact us for a free demo or consultation: https://onlineapplication.io/contact/
- If you want to read more about Payslip, or female funding in the tech world check out these links below:
https://irishtechnews.ie/irish-female-founders-raised-e100-million-in-2020/