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Observer
2 days ago
- Business
- Observer
Rise in jobs in Ireland's financial services after Brexit.
The number of jobs in Ireland's financial sector has seen a major increase from 35,000 in 2015 to just over 60,000 now, an increase of almost 70 per cent, according to a consultation paper published by the Department of Finance. It credits Brexit with some of that increase, pointing out that the sector in Ireland has thrived since Britain voted to leave the European Union in 2016. 'Ireland is now home to many global financial giants, many of whom have chosen it as their EMEA (Europe, Middle East, Africa) head-quarters,' the paper says. 'Post Brexit, Ireland experienced a further influx of IFS (International Financial Services) firms relocating from the UK. Financial services is one of the largest sectors in the UK economy too. It employs 1.2 million people across the country. It is also one of the UK's most internationally facing sectors: the UK is the world's largest net exporter of financial services and the sector accounts for more than half of the UK's surplus in services export. The Department of Finance in Ireland concedes that the Brexit bounce is probably over, and the financial sector will have to look for other ways to develop in the face of mounting international competition for investment. 'The benefits from Brexit relocations, one of the drivers of growth in the sector in recent years, will likely be limited in the future,' the paper says. 'Competition from growing international financial services hubs, such as Singapore and Dubai, is increasing.' Among the other challenges are the green transition, which has led to both Ireland and the European Union making promises on climate and sustainability objectives, which the financial services sector will have to assist with, by channelling investment towards appropriate projects. Another challenge is to lure more household savings from bank accounts into 'productive investments'. The consultation process launched by the Department is to prepare a new 'Ireland for Finance' strategy to develop the international financial services sector. The strategy began in 1987 under the then Taoiseach (prime minister), Charles Haughey, acting on the advice of businessman Dermot Desmond. He introduced policy supports and tax breaks to attract IFS activity into Ireland, and the strategy was so successful that it gradually transformed the country into a globally important hub. The consultation paper says Ireland now hosts about 600 IFS companies, and is the sixth-largest exporter of financial services globally, and the third largest domicile for funds. 'Ireland's market share has continuously grown over decades, as specialisation and expertise in various areas has developed. Ireland is now home to some of the world's largest IFS companies in sub-sectors such as banking, funds, asset management, insurance and reinsurance, fintech, and aircraft leasing,' it says. Leveraging off the presence of global tech firms, the country has become a hub for payments firms, and a specialist hub for aircraft leasing, with over 60 per cent of the world's leased aircraft managed from Ireland. A report by Indecon last year on the impact of the funds and asset management industry concluded that the sector provided almost one billion euros in direct tax revenue in 2023 alone. The Programme for Government set a target of 9,000 new jobs in the IFS sector by 2030. The new 'Ireland for Finance' strategy will aim to meet that, but the Department is cautioning that in the current economic climate, keeping the jobs we have is a key consideration. A public consultation period will run until 19 September. Stakeholders are being asked for their views on how Ireland can expand the sector, but also to identify any barriers to competitiveness and growth.
Irish Post
6 days ago
- Business
- Irish Post
Ireland's financial services hit record levels
IRELAND'S financial services sector has reached a major milestone, now employing more than 60,000 people—up from just 35,500 in 2015. The nearly 70% growth over the past decade is in part to do with Brexit, which caused many companies to relocate operations from Britain to Ireland. However, a new consultation paper from the Department of Finance warns that this Brexit-driven momentum is likely coming to an end. The paper, published as part of a public consultation process on the next phase of the 'Ireland for Finance' strategy, highlights the need for new approaches to ensure continued growth in the sector. 'Ireland is now home to many global financial services giants, many of whom have chosen it as their EMEA headquarters,' the paper notes. 'Post-Brexit, Ireland experienced a further influx of IFS firms relocating from the UK.' But it also cautions that the advantages gained from Brexit are likely to diminish as emerging international hubs like Singapore and Dubai ramp up efforts to attract financial services companies. Launched in 1987 under then-Taoiseach Charles Haughey, the 'Ireland for Finance' strategy has helped transform the country into a global financial services powerhouse. Today, Ireland hosts approximately 600 international financial services companies and ranks as the sixth-largest exporter of financial services in the world. It is also the third-largest domicile for investment funds and has developed strong specialisations in sectors such as banking, funds, asset management, insurance, reinsurance, fintech and aircraft leasing. Minister of State at the Department of Finance, Robert Troy, said Ireland's success stems from a clear and consistent policy approach. In a recent interview with FinTech Magazine, he pointed to fintech as a core focus area of the current strategy. 'This is a sector where we've seen rapid growth over the last decade,' he said. 'And I think that growth probably stems from the fact that we had a clear strategy for Ireland for finance.' Troy also underscored the need for balanced regulation, noting that the Central Bank of Ireland's 'strict but fair' approach has been essential to maintaining investor confidence. 'We're dealing with people's savings, with transferring assets. They want certainty and protections in place.' In addition to rising global competition, the consultation paper outlines other challenges for the sector, including the green transition and sustainability objectives set by both Ireland and the EU. The paper notes that the financial services industry will play a critical role in funding climate-related projects. It also highlights the need to encourage people to move savings from low-interest bank accounts into more productive investments that support long-term economic development. The Programme for Government has set a goal of creating 9,000 new jobs in the IFS sector by 2030, but the Department of Finance warns that in today's uncertain global environment, simply holding onto existing jobs is equally important. Last year, a report by Indecon found that the funds and asset management sector alone delivered nearly €1 billion in direct tax revenue. The public consultation, which is open until September 19, invites stakeholders to contribute their views on how Ireland can continue to grow its financial services sector while identifying barriers to competitiveness. The next phase of the 'Ireland for Finance' strategy will aim to ensure that Ireland remains a globally attractive destination for financial firms, even as the international landscape becomes more complex. See More: Economy, Finance, Finance Minister, Robert Troy
