Northern Ireland/Ireland Corridor Growing into Fintech Hub
By Roy Urrico
Northern Ireland’s technology sector is growing swiftly, driven by major foreign investments, home-grown startups, and robust academic research, according to business development agency Invest Northern Ireland (Invest NI). A key part of that growth, explained InvestNI, is the area’s ascension as a global hub for fintech and regtech, driven by strong government backing, competitive operating costs, and a steady stream of STEM talent.
Andrea Haughian, EVP, Head of Americas at Invest NI, and a recognized expert in economic development; and Karen Bradbury, Client Manager at Invest NI, who responsible for the development of the multinational financial services and professional services sector; sat down with Finopotamus to discuss the area’s fintech growth and efforts to attract investors and companies.
“From an investment perspective, essentially look on us as a public organization or a government organization that works alongside industry and academia, to develop an ecosystem that is attractive both for direct investment and also to help fintech companies grow,” said Haughian.
In a separate conversation, Finopotamus also spoke with Hilary Moran, CEO of the Fintech Corridor, a technology group stretching from Belfast, Northern Ireland to Dublin, Ireland.
Technology Growth
As the regional business development agency, Invest NI's role is to grow the local economy. This is achieved, explained Bradbury, by helping new and existing businesses to compete internationally, and by attracting new investment to Northern Ireland.
“If you look at our services, essentially, we are split. One area focuses on promoting Northern Ireland to an international audience, to encourage companies that are thinking of expanding their international footprints to consider Northern Ireland as a potential location for foreign direct investment,” added Haughian.
Haughian noted about 1,800 international companies are based in Northern Ireland. “Many brand names that you would recognize, like Allstate and Citi, Bank of America, Aflac and so on, have significant operations in Northern Ireland. But in addition to that, we also work alongside companies born in Northern Ireland that are part of that very active innovation ecosystem that we have.”
Then there are homegrown companies in the fintech space, many of whom worked for some of those large international companies have spun out their own organizations. “And we help those companies find clients internationally, to grow their business internationally, to grow their exports internationally,” said Haughian, who manages a team of about 27 people across the Americas. “We're based in offices in New York, Boston, Chicago, San Francisco, and we also have a presence in Canada and in Mexico as well.”
Fintech Pipeline
Bradbury’s role is the financial services sector lead that includes fintech. “A large part of that is helping the sector grow, and to help how Invest NI engages with the sector. So much of our growth in financial services and in fintech has really been driven by foreign direct investment and a large part of that has come from the States from Andrea's team,” explained Bradbury. “We are good at looking for opportunities for companies that are based in Northern Ireland, looking for opportunities to expand in external markets.”
Bradbury also sits on the advisory board for the Fintech Corridor, a technology group stretching from Belfast, Northern Ireland to Dublin, Ireland, straddling two jurisdictions, with responsibility for increased co-operation and collaboration amongst fintech’s on the island of Ireland. The island of Ireland is divided politically into the sovereign Republic of Ireland and Northern Ireland, which is part of the United Kingdom.
“The Fintech Corridor is a private organization. It was funded initially through, a cross-border agency that's also funded through the Department for the Economy called InterTradeIreland. But it's set up essentially as a cross-border network,” said Bradbury.
“Our focus is on breaking down the traditional barriers between the North and South and creating a genuinely connected fintech ecosystem across the island of Ireland,” explained Moran. “We bring together fintech companies, financial institutions, investors, academia, government agencies, professional services and talent to create opportunities for collaboration, investment, innovation and growth.
Moran termed a big part of the Fintech Corridor’s work is “about connecting people and ecosystems that might not otherwise meet - helping companies access new markets, investors and partners, creating stronger links between industry and education, and ensuring that emerging talent has a pathway into the sector.
Foreign Investment
The underlayment of the Fintech Corridor began with a cluster of payments companies that has expanded to all aspects of fintech, suggested Bradbury. Among the specific fintech areas mentioned are regtech, cybersecurity, data analytics, insurtech and artificial intelligence.
Bradbury further explained it is essentially through foreign direct investment that financial services is now a growth industry in Northern Ireland. “It really started in the mid, late 1990s after the Good Friday agreement, with four companies that set up in Northern Ireland at the time. Two were (Great Britain)-based.” One was the Lloyds Banking Group; the other was Abby National (now Santander).
The other two were tech arms of Allstate and Liberty Mutual. “They set up through working with our teams in the U.S. who really identified those opportunities. (That) was kind of the kind of the bedrock and the foundation for the growth of the sector,” said Bradbury
Bradbury also denoted the significance of arrival of Citi Belfast in 2005, which started with 375 employees and has grown to over 4,000, establishing itself significantly over two decades as one of Northern Ireland's predominate financial service organizations.
“A large number of our people who are working in fintech are working in tech roles within large financial institutions or financial companies like Allstate and Liberty,” noted Bradbury. “In terms of being able to get that talent, and then also building that talent pipeline, I would say FDI (foreign direct investment) has really shaped the financial services sector here. The homegrown companies here looking to expand have grown up around it.”
Moran further highlighted the Fintech Corridor’s strategy: “We also see the island of Ireland as having a really interesting proposition internationally. We have the benefit of being part of both the EU and UK markets, with Dublin and Belfast sitting within a relatively small geographic corridor but offering access to two very significant financial and technology ecosystems. That creates opportunities for companies looking to establish or scale here, particularly in areas such as fintech, payments, regtech, AI and emerging technologies.”
Innovation and Cooperation
Northern Ireland does have a long history of innovation throughout different sectors, especially in areas like aerospace and heavy engineering, but the capability to pivot very effectively to fintech has served the area well indicated Haughian.
“We are producing the skills and the talent that industry needs, that has been the main attraction. We have a very robust education system in Northern Ireland. We have a very strong ecosystem now made up of both indigenous and international companies as well,” held Haughian. “And we have a great quality of life and that all of that has combined to attract more companies to establish a presence in Northern Ireland and particularly along that Fintech Corridor that exists between Belfast and Dublin.”
The country has been a hotbed of innovation, Haughian emphasized. “And with organizations, like the Fintech Corridor, that are constantly looking at ways to collaborate and innovate and partner together in terms of trading and development and talent progression, I think that has kept Northern Ireland very much at the fore and fresh when it comes to companies considering establishing in the region.”
Moran added, “Over the past few years, the Corridor has also increasingly become a voice for the fintech sector on an all-island basis. We want to make sure that the North and South are not operating as separate ecosystems, but are building something bigger together. Ultimately, our ambition is to help build one of the most connected and collaborative fintech ecosystems in Europe, while creating real opportunities for companies, investors, students and the wider economy.”
