The Evolution of Financial Services in Ireland
The evolution of financial services might sound like a dull topic, but it really isn’t, believe me. To fully understand where we are now in financial services, it is important to know where we came from.
There are three main banking institutions in Ireland at the moment; Bank of Ireland, Allied Irish Banks and Ulster Bank. They are the three big players who control 95% of the lending to small businesses in the Irish market.
How Did We Get Here?
Each of these traditional institutions was established between 1836 and 1966, so longevity may have a hand in how dominant they are in the lending sphere. Until recently there has been very little competition for these institutions, meaning that some lose out on finance, such as SMEs.
There is a general lack of knowledge on alternative financing options in Ireland. Many alternatives exist, such as GRID Finance, who match SMEs with investors looking to back businesses.
Irish Businesses are over-reliant on short-term bank finance, such as overdrafts and trade credit.
What Does the Future Hold?
Traditional banking institutions may be in the majority for now, but alternative financing options are becoming available. Take GRID Finance where they believe that “small businesses are the engine of change in society”. Not only does GRID match up SMEs with investors, but they award companies with their very own credit score, known as a GRID Score.
GRID Finance also offers a business loan called a cash advance. This is a simple and quick way to get the funding you need to grow and expand your business. An especially great option for those in the retail and hospitality industry, because the repayments are made daily as a small percentage of your card machine transactions. This flexible business loan works with your business' natural footfall, meaning you pay less during quieter times.
To find out more about GRID Finance and their products, check out the website.