Introduction to Ireland’s Fin Tech Industry Fintech Forum, Seoul, April 14, 2015 Presented by Derek Fitzgerald Director of Japan, IDA Ireland
Introduction to Ireland’s Fin Tech Industry
Fintech Forum, Seoul, April 14, 2015
Presented by Derek Fitzgerald
Director of Japan, IDA Ireland
– 70,280 Sq. Kilometres
– 4.6 Million People
– Member of EU & Euro
– Highly skilled workforce
– English speaking
– GDP €175 billion
– Exports €154 billion
– 1,000+ Multi National Companies
Ireland in Focus
IDA Business Focus
Information Communication
Technology
Life Sciences
Engineering, Industrial & Clean
Industries
International Financial Services
Content Industry, Consumer & Business
Services
Global Business Services
High Value Manufacturing
Research, Development &
Innovation
Food
Why Financial Services in Ireland
Track Record
Talent
Technology &
Transformation
Tax
Regulation
Research & Innovation
• Leading Jurisdiction for Foreign Direct Investment (FDI) • 1000+ international companies • 500+ operating in Financial Services and ICT sectors• Full Range of Back, Middle and Front Office activities
• 30,000+ employed in Financial Services industry• Access to EU labour market & fast track visa / work permit process• 20,000 graduates per annum in Business and IT related disciplines
• Strong FinTech cluster and Technology development activity • History of Transformation & Innovation across industry sectors
• Competitive 12.5% corporate tax rate• 25% tax credit on R&D activities• Special Assignment Relief Program for senior company executives – Exemption on income tax for 30% of salary between €75k-500k
• EU Regulatory Passport • Third Country Branch option for non-EU institutions
• Financial services companies undertaking significant R&D projects • Major active research programmes in Governance, Risk, Compliance (GRC), Data Analytics, Process Optimisation, etc
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500+ Companies employing over 32,000 people
80+ leading Global Banks
8 of the top 10 Global Fund Administrators
41% of the World’s Hedge Funds are serviced from Ireland
No.1 location in Europe for Cross Border Life Insurance
9 of the Top 20 Global Financial Technology Companies
International Headquarters Global Transaction Services International Operations Centres
Corporate Treasury Customer Support International Payments
Financial Shared Services Asset Management International Tax
Fund Administration Services Research & Development Trustee Services
Innovation Labs Compliance & Risk Software Engineering
Advisory Services Financial Services Technology
Activities in Ireland
International Financial Services In Ireland
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Banking
Investment
Management
Insurance
Major Global Financial Institutes in Ireland
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Financial Technology in Ireland: Fully Revolving Eco System
Online/Mobile Banking
Risk Modelling, Management &
Compliance
Security & Transparency
Data & Predictive Analysis / Business
Intelligence
Automation
E-PaymentsFinancial
Services Cluster
Software / ICT
Cluster
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– World’s Leading International Security
Technology companies developing and
supporting Security Technology in Ireland
The top 3 global software security companies (e.g.
Symantec, McAfee, Trend) have strategic operations
in Ireland
– 40+ Indigenous Irish Security Technology
Companies add to the Security Cluster in
Ireland (e.g. Daon)
– Cluster is supported by growing security
research capability in Irish Universities
Ireland’s International CyberSecurity Cluster: : Fintech needs Cyber Security
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Distributed access control, autonomic security trust, security analysis & security risk management
Research into all aspects of distributed computing extending from theoretical foundations to system engineering issues. Expertise in the areas of ubiquitous computing, mobile computing and software engineering.
IT Security &
Cryptography
Software &
Technology
Optimisation
Network Analysis &
Data Analytics
Cybercrime &
Fraud Analysis
Illegal distribution of software, abuses of multiplayer online gaming, mobile forensics
Some Irish Research Institutions (in the Software, Security & Analytics space)
Research Focus Research StrandsResearch
Centres
Research in coding theory and cryptography, discrete mathematics, algebra and number theory
Analysis & visualisation of graphs and social / biological networks. Matrix analysis techniques, information flow monitoring, discovering network structure
Development of more reliable & secure software, encompassing software code refinement, verification and automatic program construction
Centre for
Cybercrime
Investigation
Clique
Research
Cluster
Computer
Science
Centre
Dependable
Systems
Group
Identity based encryption & signature schemes, cryptanalysis & biometric cryptography, smart card security
Computer
Security &
Cryptography
Group
Fundamental & applied research in IT security for data communication networks, authentication & access control schemes, formal verification of security protocols using steganography & information hiding
Data-Comm
Security
Laboratory
Dependable
Systems
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Multinational Companies in the Big Data/Data Analytics Space
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Primary Research Institutes - Analytics
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Centre for Data Analytics Research
www.insight-centre.org
Developing next generation data analytical and Big Data technologies.
Originally DERI (Digital Enterprise Research Institute),CLARITY (Centre for Sensor Web Technologies), Clique(Graph and Network Cluster Analysis) and 4C (CorkConstraint Computation Centre).
30+ industry partners, 200+ researchers, €88minvestment.
Role involves supplying analytical talent to industry.
Six primary research areas:
Machine Learning and Statistics
Optimization and Decision Analytics
Media Analytics
Semantic Web and Linked Data
Personalisation/Recommender Systems
Sensor Web
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Centre for Applied Data Analytics Research (“CeADAR”)
– Recently-established Government-funded Applied Analytics Research Centre
– Collaboration between private sector and academia
– Research is focused around three themes:
1) Intelligent Analytical Interfaces (e.g. smart analytics, ease of user interaction and change user behaviour) (DIT)
2) Data Management for Analytics (e.g. data validation and data curation) (UCC)
3) Advanced Analytics (e.g. social trending & contextualisation, and continuous analytics) (UCD)
– Participating companies include: AON, eBay, Accenture, Dell, Fidelity Investments, Adaptive Mobile, Climote, Cylon, GBR, HP, Moving Media, Nathean Technologies, Nucleus Venture Partners, and Qumas.
– Mission: “to accelerate the development, deployment and adoption of data analytics technology, as well as develop ways of generating business, profit and ultimately jobs from data analytics”
– CeADAR will also conduct initial research into technology challenges
– that have been identified by industry representatives
– Opportunity for UBS to participate ?
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Financial Incentives for R&D activities in Ireland
3. Training Grants (available throughout Ireland)• General and/or Specific Training may be supported• Grant level is determined following assessment by
training specialist
4. Tax Credit• A Tax Credit of 25% against qualifying R&D
expenditure is available in Ireland.• Effective benefit of 37.5%• Monetisation-possible repayment of excess credits
over three year cycle• Credit can be converted into tax efficient bonuses
for R&D
http://www.revenue.ie/en/tax/ct/research-development.html
IDA Ireland can support companies by providing financial aid by way of Employment
Grants, R&D Grants and Training Grants, depending on the investment parameters.
1. Employment Grants (available in designated areas)• Available in specific locations in Ireland (e.g. Galway but
not Dublin)• Fixed amount agreed per new position created over a
period of years.
2. Research, Development & Innovation (available throughout Ireland)• Agreed Research Program• Grant support generally in the range of 5 - 15%• Grant level is determined following assessment by
technical specialist
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Why Ireland? – TaxationPredictable. Stable. Consistent. Competitive.
– Continued commitment to maintaining the 12.5% rate
– One of the world’s most attractive allowance schemes for the acquisition of
IP:
• Cost of acquiring IP (or other intangible assets) can be written off against
80% of income over 15 years
• Potential for only 20% of income therefore to be taxable
• No stamp duty on the sales/transfer/disposition of IP
– Extensive tax treaty network (agreements with 71 countries & growing)
– Enhancement to R&D offering- proposed knowledge development box
currently under consultancy to be ‘best in class’ regime, whilst also being in
line with current international consensus on what is acceptable for such a
regime.
12.5%
Corporate Tax
Rate
1st for
corporate
taxes
25% R&D
credit
Extensive
Tax Treaty
network
12.5%
1st
25%
extensive
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Legal Benefits for IP Protection in Ireland
– Common law environment offering familiarity to Indian companies
– Longest history in IP protection with cutting edge legislation: first recorded copyright case in 560AD…….with all legislation updated for the digital age
– One of the most effective and rapid litigation systems in the world (Irish Commercial Court – judgements in 4-6 months vs at least 24-36 months in most other jurisdictions)
– Ireland has a strong community of IP lawyers operating in this area, with rapid specialisation currently underway; Furthermore, there is strong growth in the number of specialist courses at post-graduate and graduate level in Ireland
– Recognition of judgements in Ireland by other EU states (Brussels1)
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Data Protection
EU Data Protection law and by extension Irish law allows a company providing services across the EEA (European Economic Area) to establish itself principally in one EU member state (e.g. Ireland) and assert that it is subject to the data protection law of that member state in providing services across the EEA.
In order to validly claim the applicability of one member state law in such circumstances, there must be effective control and decision making regarding user personal data in that jurisdiction.
The Irish Data Protection Commissioner www.dataprotection.ie:
Provides guidance on how to comply
Is solution focused
Adopts a pragmatic approach
Helps companies develop practices that demonstrate that they are good corporate citizens (e.g. privacy officers, privacy by design)
The Irish Government allocated additional resources and doubled the budget of the Office of the Data Protection Commissioner from €1.89m to €3.65m in December 2014
Will be heavily involved in proposed new European General Data Protection Regulation
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At a Glance
Citi is the world’s largest financial
services group, operating in 160
countries with 200 million consumer
accounts. Citi employ 266,000
people. Major business lines
include: Regional Consumer
Banking, Securities and Banking,
Transaction Services, Institutional
Clients Group.
Irish Operation
Citi employ 2500 people in Ireland
Citi has three direct operations:
• Service Centre (Dublin)
• Regional Fund Administration (Waterford)
• Research, Development & Innovation Centre
(Dublin)
Activities include:
•Banking headquarters,
•Global Processing Centre,
•Fund Servicing,
•Commercial Banking,
•Private Banking/Wealth Management
R,D & I Centre competencies: $45 million R&D Centre, 100+ Staff
•Asset Pooling,
•E-banking,
•Money Laundering, •Cross border payments.
“Ireland was chosen as
the location of choice
for these new roles due
to the calibre of our
employees and the
depth of expertise and
innovative thinking
inherent in our
workforce which has
enabled Citi Ireland to
continue to win
business and become
the leader in Services
Innovation for the
organisation
worldwide”.
Aidan Brady, Citi Country Officer
in Ireland
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Case
At a Glance
Aon is a leading global insurance and
reinsurance broker, providing
property/casualty, liability, workers'
compensation, and other insurance
products for groups and businesses,
as well as risk management services.
Irish Operation
Aon Centre for Innovation & Analytics (ACIA)
Based in Dublin, the Aon Centre for Innovation and
Analytics was established in 2008 as a global research
centre to provide support to Aon. Aon invested
€30million in the centre, which is the focal point for
the development and rollout of a number of initiatives,
most notably the Global Risk Insight Platform
(GRIP). ACIA currently employs 90 people.
Purpose:
• Aggregate and streamline data flows from multiple
sources across the world;
• Perform detailed analysis and validation on data
flows;
• Develop ground breaking, innovative and best-in-
class products.
“Ireland was attractive
to us, not only because
of its geographical
position, time zone,
and availability of a
well educated
workforce, but
because we were able
to leverage an already
attractive business
with a strong portfolio
and an established
track record in the
market here”
Stephen Cross, CEO of Aon Global
Risk Consulting
in Ireland
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At a Glance
Accenture is a global management
consulting, technology services and
outsourcing company. Accenture
collaborates with clients to help
them become high-performance
businesses and governments.
Irish Operation
Accenture employs 1500 people in Ireland
The Irish operations are divided across 5 operating
groups: Communications, Media & Technology,
Financial Services, Public Service, Products and
Resources.
•Irish Consulting Centre (1,250+ people),
Established 1999
•European Shared Services Centre (260
people), Established 1999
The Shared Services Centre in Dublin provides
financial accounting, cash management, human
resources, IT services and data support to
Accenture’s offices across 15 European countries.
•Analytics Innovation Centre, (100 people),
Established 2010
The Centre is a global showcase for Accenture’s
analytical capabilities. The centre delivers
compliance and fraud related analytics solutions to
clients worldwide.
“Thanks to the
tireless efforts of IDA
Ireland, this country
now has a growing
reputation as a
global hub for
technology research
and innovation, with
Accenture being one
of several companies
to recently choose
Ireland as an
investment location,
ahead of other
countries”
Country Managing Director,
Accenture Ireland, Mark Ryan
in Ireland
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At a Glance
PayPal’s vision is to help people
pay for things anytime, anywhere
and on any type of electronic
device, and to make money to work
better for consumers and
businesses at a time when the line
between the online world and the
high street is breaking down.
Irish Operation
PayPal employ 1400+ people in Ireland
PayPal’s European operation centre opened in
Dublin in 2003. Since then the number of staff has
increased from just 25 to more than 1,400 today. In
2009, PayPal invested €15 million in the
establishment of a European Centre of Excellence
in Blanchardstown, with the support of IDA Ireland.
The Dublin operation manages over 42 million
active accounts across the EMEA region.
Activities Include:
• European Customer Services
• Risk & Fraud Management
• Merchant Solutions
• Operational Excellence
Recent Announcements:
In February 2012, PayPal announced the creation
of 1,000 jobs over the next four years at PayPal’s
new European Operations Centre in Dundalk, Co
Louth.
"PayPal’s continuing
success story means
that we need to
expand our excellent
team in Dublin for the
fourth time in the last
two years. We have
gone from strength to
strength since the
Taoiseach officially
opened our European
Centre of Excellence in
March 2009”
Louise Phelan, Senior Director for
Global Customer Services & EU
Merchant Services.
in Ireland
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IDA Ireland Overseas Locations
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Thank You 감사합니다Contact Details: James ParkIDA Ireland, Korea OfficeT) +82-2-721-7217M) +82-10-3472-8178E) [email protected]