The importance of Ireland’s financial services sector to the economy and society is difficult to overstate. Financial services companies operating throughout Ireland now employ more than 100,000 people, while the industry contributes over €6.7 billion annually in tax revenues.
“The industry’s corporation tax contribution has grown by 430 per cent since 2011,” says Audrey Crummy, acting director of Financial Services Ireland, the Ibec group representing the interests of the financial services sector in Ireland. “In addition, the industry contributes about €19 billion of 6.3 per cent of Ireland’s GDP.”
The breakdown of employment in the industry is important, she adds. “Over 57 per cent of the jobs are in international firms,” she notes. “And 30 per cent of them are outside of Dublin. The industry has a very big regional impact.”
It is also globally significant. “The industry is the eighth largest exporter of financial services in the world, with customers in over 100 countries. It is also the fourth largest exporter of financial services in the EU, behind major financial centres like Paris and Frankfurt. But where we might lack scale, we have scope. The sheer breadth of activity that takes place here makes a compelling case for international financial services firms to choose Ireland.”
The Financial Services Ireland membership reflects that broad scope. “We are unique in representing the whole industry,” Crummy explains. “We have 160 member companies across banking, insurance, fund administration, investment management, corporate treasury, international financial services, aircraft leasing, securitisation and fintech. We are part of Ibec, Ireland’s largest business lobby group and part of Business Europe, a social partner of the EU institutions that must be consulted in relation to policy decisions and new legislation.”
Financial Services Ireland recently welcomed a new chairman, Irish Life chief executive Declan Bolger, she continues. “He has already made a significant contribution as a member of our board since 2019 and it’s great to have him at the helm. He sees opportunities to build on the industry’s success in key areas like fintech and digital finance and to make Ireland an attractive place for those sectors as well as the industry as a whole. We have one of the most open and diverse financial sectors in Europe and Ireland is now seen as a gateway to Europe for the industry. We want to build on that and see the industry continue to grow.”
The establishment of a new National Fintech Hub will play an important part in that growth. “A lot of global firms are making decisions on where to invest, and we need to make it attractive for them to choose Ireland.”
She explains that the hub would be a physical location which would serve as a natural landing point for multinationals considering entry to the Irish market. It would also serve as a home and seedbed for early-stage fintech firms, as well as research and innovation teams from longer-established firms. The aim would be to create opportunities for knowledge and experience sharing among a community of fintech firms of all sizes and stages of development.
“It’s really about connecting, and not just in a physical place,” Crummy adds. “It would be a virtual platform as well to allow firms from throughout the country to collaborate. The aim would be to replicate the success achieved by similar facilities such as Level 39 in London and Station F in Paris. That would put us in a much more competitive position. The Government has backed the National Fintech Hub in the Programme for Government and that is very welcome. The next step in its development is a feasibility study and work will begin on that in the coming months.”
She also welcomes the backing for the Women in Finance Charter contained in the programme for government. “The aim is to promote gender diversity and inclusion at all levels within the financial services sector bring more women into the industry. The charter was established in 2022, and we work with ESRI as our data partners. We have seen progress in the appointment of women to more senior roles since then. We now have over 100 signatories who commit to report on specific metrics on the participation of women in their workforce.”
Another issue to be addressed is the skills needed in the industry. “Sustainable finance has a key role to play in the energy transition,” Crummy notes. “The inclusion of sustainable finance in more third-level courses would help to provide the skills needed there. Also, it is projected that employment in the industry will grow by 6,000 to 9,000 new people by 2027. We are helping to meet the demand for skills that growth will create through the IFS Skillnet as well as through the IFS apprenticeship programme, which is designed for people who are eager to embark on a career in the financial services industry.”
