Technology-driven innovation and forward-thinking financial institutions are driving the success of Ireland’s international financial services sector
To ensure Ireland’s international financial services industry (IFS) continues to thrive as a top-tier global location of choice for IFS, the Irish government created a strategy, Ireland for Finance. The strategy is based on four key pillars. First, by ensuring policy, culture and legislative conditions foster IFS growth. Second, the technology and innovation pillar is focused on providing a collaborative approach to addressing emerging challenges and opportunities in technological developments. Third, by nurturing a talented workforce. Finally, by ensuring that Ireland is globally recognized as a hub for IFS. The nation’s largest banks are playing a significant role in making these ambitions a reality, including AIB Group plc (AIB).
AIB is one of the largest financial services providers in Ireland and has market leading positions in key segments across the country. Founded in 1966 when three long-established banks amalgamated, the Group operates predominantly in Ireland and has franchises in Great Britain and Northern Ireland as well as offices in the United States.
“On completion of the proposed acquisition of Goodbody, a provider of wealth management, corporate finance and capital markets services, we will provide everything a corporate or business customer would need from us,” said Colin Hunt, CEO, AIB.
He continued, “For example, traditional lending, current accounts, transaction banking, digitally enabled transaction banking, equity capital market products, debt capital market products, and corporate advice. This is a market we understand better than any other market in the world, and we are committed to supporting all businesses and all people who are connected to the Irish economy.”
Innovation
AIB’s success story is driven by its employees, a solid commitment to customers, and innovation. The bank has invested heavily in its IT infrastructure and digital offerings, and continues to do so, increasing its presence in the digital sphere, and making access to digital services easier for customers. Developing breakthrough technologies is in its DNA.
Hunt added, “Every day 40,000 of our customers engage physically in our branches whereas about 1.5 million interactions occur online daily. The vast majority of transactions are done using mobile and digital technology. Today, just shy of 90% of our personal deposit accounts are opened online, and we are heading to about 30% of our mortgages completed online. For everyday financial transactions, we have seen a significant switch to digital, away from in-person banking. This is a consequence of customer preferences but also of the investment we have made in our digital offerings and the innovative approach we have adapted over the past number of years.”
AIB’s innovative spirit is also evident with the development of the Synch app, which will be launched later this year. This is a joint venture with Ireland’s main retail banks and is an instant money transfer app that will take on smartphone payment apps such as European Revolut, which is similar to American Venmo.
Looking Ahead
For the IFS sector to continue to succeed, companies will need to prepare for and anticipate disruptive technologies and focus on developing their capabilities to meet these disruptions. The Ireland for Finance strategy is catalyzing this process.