Fineous, a Dublin-based developer of enterprise software for the banking and insurance industries, has appointed the former chief executive of AIB bank, Mr Tom Mulcahy, as chairman.

Mr Mulcahy, who has worked in financial services for more than 30 years, will also invest in Fineous during its current fundraising.

This is the first non-executive directorship Mr Mulcahy has taken in a technology company since he retired from AIB in June.

Mr Mulcahy sits on the board of AIB's Polish and US subsidiaries, and three other private businesses. He was recently appointed chairman of the DCU educational trust.

Mr Michael Kelly, chief executive of Fineous, said Mr Mulcahy's appointment would help the firm expand into eastern Europe and the US markets. "We wanted him to be chairman because of his vast boardroom experience and his knowledge of the industry," Mr Kelly said.

Fineous develops software that integrates the computer systems of major banks and insurance companies. Its customers include several major financial institutions, such as ABN Amro.

Mr Mulcahy told The Irish Times yesterday that he joined Fineous because it had a very good profitable business model, strong products and solid markets in Britain and the Netherlands.

Mr Mulcahy said he expected to invest in Fineous during the current round of fund-raising after the new investors came on board.

Mr Mulcahy said he hoped his experience would help Fineous to develop further. "Young companies often do need to get reality checks," he said. "People like myself have been around a long time. I myself have been in charge on venture capital portfolios."

Earlier this year, Fineous said it would float on the Nasdaq stock exchange in the fourth quarter and set out to raise venture capital of £10 million (€12.7 million). However, these plans were sidelined by the current slump in the technology sector.

Mr Kelly said Fineous was now taking a much more pragmatic approach and had slowed down the process.