IFS Landscape
Firms located in Ireland provide Financial Services to every major economy in the world. The international share of the industry has also expanded since the UK voted in 2016 to leave the EU. This growth is echoed in both the range and sophistication of activities undertaken in Ireland and in the mix and number of investors.
Employing 47,000 employees in banking and payments, funds, insurance and reinsurance, investment and asset management, aircraft leasing and increasingly in recent years fintech (financial technology). Approximately 300 multinational and foreign firms employ about 80 per cent of the people working in the IFS sector.
“Ireland’s financial sector makes a substantial contribution to its economy, accounting for 6.3 percent of GDP, with 11 billion euro in exports and 2.3 billion euro each year in tax receipts”
In April 2019 the Irish Government launched Ireland for Finance, its whole-of-Government strategy for the further development of the international financial services sector in Ireland to 2025.
Launched by the Minister for Finance, Paschal Donohoe TD, and Minister of State for Financial Services and Insurance, Michael D’Arcy TD.
The strategy aims to make Ireland
"a top-tier location of choice for specialist international financial services and to enhance and protect our future competitiveness. Therefore, our key objectives are to leverage the success achieved to date to maintain and extend existing business lines and to expand into emerging geographical markets and new product areas."
The Strategy is structured around the following four pillars:
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The operating environment pillar focuses on ensuring the policy, culture and legislative conditions underpinning international financial services will support growth.
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The technology and innovation pillar focus on providing a collaborative approach to addressing emerging challenges and opportunities in technological developments.
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The talent pillar which seeks to ensure that we continue to have skilled people to meet the demands of the international financial services sector, including meeting new and changing skills.
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The communications and promotion pillar focus on ensuring that Ireland’s international financial offering is communicated to all those who are or may be attracted to investing in Ireland.
The employment target for the Strategy is to reach 50,000 people in direct employment in the sector by 2025. This compares with 47,000 people directly employed in the sector at the end of 2020.
Three horizontal priorities apply across the four pillars: regionalisation, sustainable finance, and diversity.
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Minister Carroll MacNeill launches first Action Plan from the updated Ireland for Finance strategy - 10th March 2023
The Minister of State for Financial Services, Credit Unions, and Insurance Dr Jennifer Carroll MacNeill TD (Friday 10th March) launches the first Action Plan from the updated Ireland for Finance strategy following Cabinet approval.
The 2023 Action Plan under the Update to the Ireland for Finance strategy sets out the key measures that the public and private stakeholders will take this year to support the further development of the international financial services sector in Ireland. There are now 56,000 people directly employed in the export of financial services to the EU and other key international markets from Ireland and the industry supports a large cohort of professional service providers. Following the update to the strategy in 2022, the new Action Plan is focused on 12 key deliverables over the remainder of the year:
- Revise and update Sustainable Finance Roadmap – International Sustainable Finance Centre of Excellence
- Development of an updated sustainable finance value proposition – IDA Ireland
- Deepen the work of the cross-government Fintech Steering Group and Joint Fintech Group – Department of Finance
- Promote and support the digital finance agenda for the industry at home and abroad – IDA Ireland
- Participation in 2023 international fintech events – Enterprise Ireland
- Communicate and roll out a new pre-seed funding offer for early stage fintech innovators – Enterprise Ireland
- Export market seminar & peer to peer networking event focusing on International markets for indigenous fintech and financial services firms – Enterprise Ireland
- Continue to develop educational consumer resources to support consumers to engage with fintech – Competition and Consumer Protection Commission
- Complete the study by the Expert Group on Future Skills Needs on the international financial services sector – Expert Group Future Skills Needs
- Partner with the IDA and other stakeholders on showcase events in Ireland – Department of Finance.
- Relaunch the annual European Insurance Forum – Insurance Ireland
- Review of Central Bank Innovation Hub – Central Bank of Ireland
These measures are in addition to the ongoing work that organisations in the public and industry sectors carry out to make Ireland the location of choice for investors in international financial services.
The commitment to deliver on the strategy is informed by the themes in the updated strategy, namely:
- Sustainable finance
- Fintech and digital finance
- Diversity and talent
- Regionalisation and promotion, and
- Operating environment.
Commenting on the launch, Minister Carroll MacNeill noted:
“I am delighted that the Action Plan 2023 under the Update to the Ireland for Finance Strategy has been approved by Government and I am looking forward to continuing the partnership we have with industry to deliver these measures in support of the people that make this a dynamic and growing sector. We have already had a busy start to the year making good progress on initiatives like Ireland’s Women in Finance Charter and reconnecting with investors in key markets overseas. I am also looking forward to future planned engagements as well as connecting with the regional clusters that are a key part of our offering in international financial services.”
Minister Carroll MacNeill officially launched the Update to Ireland for Finance Action Plan 2023 ahead of her participation in the St Patricks Day Programme where she will be travelling to Edinburgh, Cardiff and Liverpool.
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Previous Update
Minister Fleming launches an update of the Ireland for Finance strategy - 3rd October 2022
Minister of State at the Department of Finance with special responsibility for Financial Services, Credit Unions and Insurance Seán Fleming TD has today (Monday, 3rd of October) launched an update to the Ireland for Finance strategy.
The update of the Ireland for Finance strategy, which has been approved by Government, charts the future development of the international financial services sector in Ireland to the end of 2026.
Under the updated strategy the Government has a target to grow employment in the sector by 5,000 net new jobs. This will be achieved by focusing on growth in green, sustainable, and digital financial services.
The sector, as measured by the IDA and Enterprise Ireland, employs over 52,000 people, which is the highest level ever.
The update of the Ireland for Finance strategy focuses around five main themes for growth:
- Sustainable finance
- Fintech and Digital finance
- Diversity and talent
- Regionalisation and promotion
- Enhancing the operating environment
This year, Minister Fleming established a fintech steering group in the Department of Finance. This group will be expanded to the private sector this year. The purpose of this new group is for the private and public sector to co-operate on the future policy direction of digital finance in Ireland.
Speaking at the launch, Minister of State at the Department of Finance Seán Fleming TD stated.
“International financial services is a fast growing sector of the Irish economy. The update of the Ireland for Finance strategy marks the halfway point of the original document published in 2019. I believed it was important to examine how the Government can refocus policy in response to all the changes both industry and society have experienced in recent years. The sustainable and digital transitions feature prominently as great opportunities for Ireland’s economy.”
“Partnership between the private and public sector is at the heart of this strategy. It is key to ensuring Ireland has the right education mix to meet the demands of industry in the future. Our job targets are ambitious but can be met with everyone working together.”
Key achievements that developed under Ireland for Finance include the Sustainable Finance Roadmap as part of Climate Finance Week 2021 and the Irish Women in Finance Charter, which was launched in April of this year.
