The Irish financial services sector’s workforce could add as many as 43,000 jobs by 2028 if the right steps are taken, in areas such as technology, infrastructure and the regulatory environment, according to EY Ireland.
The accountancy firm said, following interviews with 140 senior financial services leaders, that properly harnessing the State’s competitive advantages and opportunities to further develop the sector could deliver a further €3.4 billion net boost to the economy between 2024 and 2028.
EY said such an above-trend increase in employment would involve policymakers taking on board a series of recommendations put forward by industry leaders to overcome certain barriers, from infrastructure to regulation.
“Ireland’s financial services sector has long been a cornerstone of Ireland’s economic growth,” said Colin Ryan, financial services managing partner at EY Ireland.
Some 8,000 companies operating in the sector employ more than 125,000 people, mainly involved in international financial services, led by the funds sector.
“As a gateway to Europe for global financial markets, Ireland is uniquely positioned to capture the next wave of growth,” he said. “The competition for international investment is fierce, but EY and senior financial services sector leaders believe that Ireland cannot only survive but thrive as a globally significant location for financial services. To succeed, however, it is crucial that we remain proactive to solidify Ireland’s competitive advantages in a rapidly evolving global economy.”
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Some 92 financial services leaders see technological infrastructure and innovation as Ireland’s most significant competitive advantage over international peers, according to EY. It said that advancing key areas such as “responsible” artificial intelligence, cybersecurity, payments and sustainable finance will attract global investment and talent.
It said that the State could enhance its regulatory environment “by simplifying and modernising frameworks to support innovation while maintaining integrity”.
EY said that the Central Bank of Ireland’s move last year to set up a so-called innovation sandbox programme — to allow financial and technology firms to test innovative products in a safe environment before launching them on the market — is a positive step.
It added that multiyear secondment programmes to encourage industry professionals to work in public sector roles, and vice versa, would also help.
Meanwhile, EY said: “To accelerate the sector’s momentum as a global financial services hub, and capitalise on these opportunities, however, means that challenges like the banking levy and facilitating talent attraction and retention, impacted by factors such as housing shortages, will need to be addressed.”
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