Ireland's financial services hit record levels
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
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