Fenergo
The fast-growing fintech sector is already something of a broad church, encompassing many large and small firms with a whole range of technology solutions to make financial services more efficient.
Dublin-based software firm Fenergo was one of the first firms to exploit a market opportunity so big that it has given rise to a burgeoning sub-sector called “regtech”.
The idea of marrying technology and regulation to address regulatory challenges has been around for some time. It was clear to Fenergo founder Marc Murphy in 2008 that the big banks would be consumed by new regulations in the wake of the global banking crisis – regulations they will have to spend millions complying with.
“Every bank in the world is facing the same regulatory pressures and deadlines,” says Murphy. “Every bank in the world is currently struggling to manage its regulatory compliance and client data management obligations.”
With the help and financial backing of John Purdy, his old boss at IT services firm Ergo, Murphy set up the spin-off that today makes “client lifecycle management” software to help banks and other financial institutions manage their local and global regulatory compliance.
It’s a bet that has clearly paid off, as Fenergo hit the headlines last year by completing a €75 million equity fundraising round. It now plans to float on the Nasdaq in 2018 and build a €100 million business by 2020.
Fenergo now employs 270 people, mainly in Dublin. It also has offices in London, New York, Boston, Sydney, Singapore, Tokyo and Abu Dhabi.
Another critical factor in the company’s early success, Murphy says, “was in building credibility” through its first few clients, including Lloyds and Investec. It has signed 12 new deals since last year, including one with the fifth largest bank in the world. “We are on course to deliver 30 more this year,” he says.
CurrencyFair
It’s unusual to find a fintech firm with a global footprint that does most of its business with ordinary individuals. Now CurrencyFair, the peer-to- peer currency exchange broker, is now looking to build its business customer base.
Its marketplace allows people to choose to exchange immediately using the best rate currently available, or to offer up funds at a rate of their choosing and wait for another customer to match the rate. Its appeal centres on low fees and exchange rates that are often much lower than those of traditional FX brokers or specialists.
“Many of our business customers started off with us as private customers and hold two accounts,” says the company’s marketing consultant, Adam Davidson. “We recognised this, and being both private and business customers ourselves, we know what’s important to customers in both scenarios.
“Many of the product’s attributes – great exchange rates, low fees, speed and control – appeal to both. But others, like there being no floor or ceiling to the amount you can transfer; this may appeal to one more than the other.”
Plus, he adds, “we know the compliance side of things, from both angles, inside out, and our customer service team are brilliant at providing help to business and private customers alike.”
Based in Dublin, with two offices overseas and employing 17, CurrencyFair has customers in 119 countries and deals in 18 currencies.
Davidson says peer-to-peer exchanges are still perceived to be a new thing even though the company has been trading for six years now. “Which is good because it means there is an absolutely huge market still to go after.
“Marketing spend will increase and we will be working more closely with partners, to help make banking better.”
Salesforce
US CRM software giant Salesforce employs 700 people in Ireland and looks set to add more as part of plans to employ 1,200 more staff in Europe. It recently moved into the fintech space with the introduction of its “financial services cloud”. The service, which the company describes as its first industry-specific product, is designed to help financial advisers and wealth management experts to be more productive in their meetings with clients.
“We’ve taken our experience as the world’s number one CRM company and have applied it toward building stronger adviser-client relationships,” says Raj Mistry of Salesforce.
The financial service cloud allows advisers to receive a complete view of their clients and finances as quickly as possible. “They no longer need to waste time toggling in-between systems,” Mistry says, “because it drastically reduces administrative overhead.”
Although its only just been launched, Mistry says the level of interest from financial advisers and wealth management services has been strong.
Rubicoin
Founded by Dubliner and successful investor Emmet Savage, Rubicoin makes apps that aim to bring the stock market to a wider audience.
The main Rubicoin app, called Invest, allows users to add their brokerage to it and then begin buying stocks on an easy-to-use platform. The firm recently launched a version for the US market.
It also has a Learn app, which helps users understand the stock market, how to use it and how to understand various techniques used by traders. There are also plans for a third app product.
One of the cornerstone investors in Rubicoin, which is based in Dublin and has an office in New York, is the American investment advice group The Motley Fool. However, Savage has also won backing from Enterprise Ireland and a number of individual investors.