Interesting guest post by David Bloxham GCS MD of GCS – technology, engineering and financial services recruitment. We recruit and inspire the Best so that our customers recruit and engage the Best. This post first appeared on the GCS site here.
IRELAND’S FINTECH SECTOR
Ireland’s FinTech sector was already booming pre-Brexit, with 40,000 people employed in Dublin’s FinTech market and another 5,000 set to join over the next few years. However, the UK’s decision to leave the European Union has further strengthened the Irish capital’s grip. Post-Brexit, Ireland will be the only English-speaking member of the EU, and will still have access to the single market.
There are rumblings that major banks could make the move from London to Dublin. Since Theresa May formally triggered the Brexit process, leading City firms such as Lloyds of London and Royal London have announced that they will be setting up subsidiaries outside the UK. Alongside this, investment banks JP Morgan and Citigroup have begun actively exploring the relocation of key operations, with Dublin top of their lists.
Following the referendum, the Republic of Ireland’s ambassador described Ireland as the ideal place for business operations due to a “highly educated, English-speaking population, a location within the EU single market, and an environment proven to be conducive to investment”.
Ireland and other European countries are already benefiting from the uncertainty created by Brexit. Whether, or when it actually happens, many UK based FinTech companies we have spoken to are already making their exit plans based on the damaging uncertainty around the future status of the UK in relation to Europe.SIMON COCKINGIrish Tech News
FUTURE PLANS AND KEY BENEFITS OF INVESTMENT IN IRELAND
Barclay’s plan to boost operations in Dublin and use the Irish capital as the main base of operations
Ireland has the joint-lowest corporation tax in the EU
Youngest population in the EU – 40% under the age of 29
Only English-speaking country within the Eurozone, providing barrier-free access to an EU market of 450 million consumers
IRELAND IS HOME TO
9 of the top 10 global software companies (inc. Microsoft, Google, Apple & Facebook)
All of the top 10 ‘Born on the Internet’ companies (inc. Amazon, Google, Facebook, LinkedIn, Twitter, eBay)
9 of the top 10 global pharmaceutical firms (inc. Novartis, Pfizer, Roche, Sanofi, Merck & Co., Johnson & Johnson, GSK, Gilead Sciences, Abbvie)
15 of the 20 top global medical technologies companies (inc. Johnson & Johnson, GE Healthcare, Medtronic, Baxter Int., Siemens Healthcare, B. Braun)
Ireland has several organisations dedicated to increasing investment in the country, including the IDA. Recent figures from the IDA demonstrate a significant increase of interest in Ireland, bolstered by an English-speaking population and the ease of similar business laws and regulations.
We have seen a huge increase in the amount of enquiries and activities across the globe. It’s not just our office in London, or our office in Dublin; we are receiving enquiries in Asia, in the US, in New York in particular. The figure that we have used to date is over 100 related enquiries.
For the financial services sector it is the fact that they need to have access to the European market and they need a jurisdiction in which they can do that. Ireland is extremely attractive because we are English-speaking, have a common law system, and are in close proximity to the UK. MARTIN SHANAHAN Chief Executive of IDA Ireland
At the end of 2016, a survey from Knight Frank showed two sides to the Brexit story. Some specific areas of the FinTech sector in Ireland may be negatively impacted by Brexit, but the long-term outlook is certainly positive. Knight Frank points to the solid foundations that will keep Ireland an attractive business prospect for years to come – namely a strong occupiers market and a sturdy economy.
A 2016 Cushman & Wakefield report showed a 15 per cent increase in occupation compared to 2015 and the highest levels since 2007. A concern about lack of grade-A office space was eased by over 31,000 sqm of new office accommodation being built during the year.
Due to its strong economic and cultural ties to the UK, Ireland may be impacted by Brexit, but benefit from the fallout too.
In a report from the end of last year, Knight Frank explained:
“Financial firms that are located in the UK can operate in the EU via a mechanism called “passporting”. The UK will have to renegotiate these terms and these may not be as favourable as those currently in place.
Money transfer and start-ups would be hardest hit by the end of EU passporting, but as the real impacts on the FinTech industry are uncertain, there is a wait to see whether Dublin can benefit from the fallout.”
Only time will tell how Dublin, now the only fully English-speaking capital city in the EU, will be impacted by Brexit.
“Overall, the fundamentals underpinning the Irish investment market are set to remain strong, with the economic backdrop positive, occupier markets buoyant and financial conditions continuing to improve.” – Knight Frank, Dublin Office Market Outlook Q3 2016
At GCS, our Dublin office is perfectly placed to take advantage of the growing FinTech industry. We help place the strongest candidates into the new and emerging roles that come with the growth of Ireland’s capital.
[sources http://www.idaireland.com; https://www.theguardian.com/business/2017/mar/30/jp-morgan-dublin-office-building-1000-jobs-city-london]
The definition of a GCS success story, David joined the company in 1996 as a junior consultant and became the Managing Director in 2008. A graduate of Reading University, David works closely with the local business community and was President of the Reading Chamber of Commerce, a voluntary role he held from 2013 to 2015.
David is heavily involved in improving the service and customer relationships at GCS, the recruitment business based in London, Reading, Dublin and New York and specialising in Technology, Engineering and Financial Services.