factor-e to close down with loss of 28 jobs

Financial technologies development company factor-e is to close its Dublin operation with the loss of at least 28 jobs immediately.

The remaining five staff will be retained to wind down the company.

Staff were told of the decision this morning. ireland.comunderstands that employees will get one month's pay and statutory redundancy.

It is understood the company was unable to meet funding targets over the past six months and struggled to achieve sales targets because current market conditions are not conducive to selling software.

Factor-e provided Internet financial services and products to businesses on an own-branding or co-branding basis.

It also provided the technology infrastructure for Enba, the Dublin-based holding company set up to offer the first Internet-only banking services in Europe.

Enba’s Internet banking facility struggled last year, particularly following the collapse of its merger with Spanish Internet bank Uno-e in April.

In September 2001, first-e ceased trading and 250 people working there lost their jobs.

The best known and most successful European e-bank is Egg, which was launched in October 1998 by leading British insurance company Prudential.

Initial market reaction was highly encouraging, and Egg rapidly gained a substantial customer base. The company was floated in June 2000, with an initial market capitalisation of £1.5 billion sterling.