The junction between Ireland's emerging fintech cluster and the traditional financial services sector could create 5000 new jobs by 2020 says professional services firm Deloitte.
The paper - ‘Why FinTech collaboration with financial services can drive job creation in Ireland’ - highlights the 'symbiotic' relationship forming between bank incumbents and innovative upstarts, with old-line providers integrating different components of the online value chain from specialist providers.
The analysis sets out five focus areas for Ireland which can shape the success of the country's fintech sector over the next 5-10 years: connectivity, talent, innovation, investment and cyber security.
Says David Dalton, head of financial services, Deloitte Ireland, to the Irish Times: “Many financial services firms are struggling with outdated legacy platforms and IT architectures that are hampering their ability to grow and innovate.”
“While some financial services firms have been cautious about new fintech start-ups, particularly where they are disrupting traditional business models and competing for customers, we are increasingly seeing a symbiotic relationship developing, which is helping to address these legacy issues in financial services companies.”
Deloitte's analysis comes shortly after the Irish government published its own strategy for the nation's financial services sector earlier this month entitled ‘IFS2020’.
The report sets out a 30-point plan including improving collaboration between the IT and bank sector, working with fintech accelerators and facilitating access to funding for startups, to create 10,000 new jobs.