Despite Challenges, the Sector Remains Strong

Finance is big business in Ireland, and as of late, international financial services (IFS) in particular play a crucial role in the Irish economy. 11 of the world’s 15 largest insurance businesses have a presence in Ireland, with Irish insurance companies serving 25 million customers across 110 countries. Additionally, 17 of the world’s 20 biggest banks are based in Ireland, and more than 60 percent of the globe’s leased commercial aircraft are either owned or managed there. Today, the country is the second largest funds domicile in Europe and the third largest funds domicile worldwide.

An estimated 105,000 people are directly employed in the international and domestic financial services sectors; collectively, businesses in these sectors are responsible for administering more than EUR 5.2 trillion in assets. The GDP of these sectors has been estimated as EUR 19.3 billion. 

Of the many companies active in the Irish IFS sector, one of the biggest players is the Bank of Ireland Group. The Bank of Ireland Group has been active in Ireland for centuries, with more than 235 years of history in its home country. Today, the Group is a leading lender to corporations in Ireland and is the nation’s number-one bank regarding market share for SMEs. However, the Group has no plans to rest on its laurels. Instead, it is ready to grow and change to ensure its continued success well into the future.

Ireland’s Financial Services Sector Today

Bank of Ireland Group senior management are confident in the health of Ireland’s IFS sector, along with the Irish economy as a whole.

Tom Hayes, the Group’s Chief Executive of Corporate Banking and Markets, said, “Ireland has dealt with both the COVID-19 pandemic and Brexit in the past few years. However, both of these situations have had some surprising benefits for the Irish economy. Brexit has highlighted many of Ireland’s strengths, such as our stable political and legal system, a supportive regulatory regime and our skilled and highly-educated workforce. Meanwhile, COVID-19 has emphasized the importance of adaptability and flexibility and staying close to and supporting our customers, both domestic and international. Ireland has long served as a gateway to Europe for US-based companies and Brexit and Covid has only reinforced the importance of that gateway.”

Hayes spoke about the Bank of Ireland Group’s efforts to offer real value to its foreign clients, “There are a few reasons why we have been so successful in terms of foreign direct investment. First of all, it has always been a big focus for us to ‘wear the green jersey.’ When a foreign company starts talking about coming to Ireland, we work closely with other stakeholders to support their needs. The IDA, Ireland’s economic development agency, is at the center of that work. However, other entities also have a critical contribution, including banks, legal firms, accounting firms, and more; we all work hand-in-hand to make the journey as efficient as possible for companies entering Ireland.

“An important thing for overseas companies entering the Irish market is to find the ideal bank to meet all of their banking requirements and needs. They want to have a bank that can support their business needs and that can also offer their employees a streamlined service and make the transition as easy as possible. Particularly if they are bringing expats from the USA into Ireland to support the business in the first two years, we ensure that opening bank accounts is as seamless as possible. We find that it makes a huge difference when corporations don’t have to worry about the banking needs of their employees.”

The Group also provides services to Irish companies active in the USA as well as key US private equity clients and operates from offices in New York, Stamford, Chicago, and Los Angeles. Notably, its New York office features an “innovation hub” which Irish start-ups can use as a physical workspace in the USA as they make that important first step into the US market. Hayes said the Group was the first Irish bank to introduce a program like this in America. Feedback regarding the program has been highly positive so far.

Big Plans For The Future

According to Hayes, the growth of Ireland’s IFS sector has accelerated in the last two years, particularly in the funds management space. He believes this growth could continue but that businesses in the industry will need to adapt to shifting trends in consumer behavior due to COVID-19.

Not every change brought about by the pandemic will last forever. That said, one change likely to stick is people’s increased reliance on digital technology while handling their banking needs. This trend began before the pandemic started and should continue well after it has ended.

When asked about the Bank of Ireland Group’s plans to enhance its digital presence, Hayes said, “We are working on blending the relationship management skills we bring to our customers with best-in-class digital capability. We have invested heavily over the last few years in the functionality of our digital services for our customers. This has made a meaningful difference for our customer offering.

“The Group launched a new banking app last year, and our number of digital transactions relative to over-the-counter transactions has increased exponentially over that period. There will still be a place for physical branches and for face-to-face engagement, but it needs to be blended with a best-in-class digital offering. This is our vision for our customers – to enable them to self-serve and do as much as possible using digital technology while also providing that personal touch-point when they need it. We have made huge progress on that journey over the last two years.”

Finally, Hayes shared some advice for American companies thinking about expanding into Europe in the future. He said, “Thanks to factors like its location, open economy, and educated workforce – Ireland is the perfect European country for this purpose.

“Talking to the right people is critically important. IDA Ireland provides advice and practical support to US companies looking at setting up operations in Ireland and can also facilitate the right conversations with all key stakeholders. In general US companies that have established a presence here have found that their Irish operations have significantly outperformed expectations.

“I believe that is a tremendous testament to the unique features Ireland offers as an investment location,” Hayes said.