finuas network meeting 22 july 2009 brendan kelly, director financial services ireland
TRANSCRIPT
FINUAS Network Meeting22 July 2009
Brendan Kelly, Director Financial Services Ireland
www.fsi.ie
www.ibec.ie
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
• Importance of Finuas
• Expectations of sector
• Challenges facing financial services
• How FINUAS can help
www.fsi.ie
www.ibec.ie
Importance of FINUAS
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
www.fsi.ie
www.ibec.ie
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
Key Sectors within International Financial Services
www.fsi.ie
www.ibec.ie
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
Importance of FINUAS Training to Financial Services
• 25,000 people employed by the International financial services sector
• Corporation tax yield from IFSC companies was €850 million in 2008 (Revenue Commissioners)
• FS Sector accounted for 11.2% of GDP in 2005 (CSO)
• Between 1999 and 2006 total serviced exports in IFSC grew by 167% and the IFSC now account for 0.83% of all service exports globally (Economic Development of the Docklands-Deloitte)
• FS are Ireland’s 4th largest services export sector (Forfas)
www.fsi.ie
www.ibec.ie
Employment Figures
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
*Expert group of future skills needs
Table 1: Estimated total growth in employee numbers sector 2006-2012
www.fsi.ie
www.ibec.ie
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
Not just of commercial importance, but of national importance
• ESRI Medium Term Review• Services will account for 70% of all exports by 2025
• EGFSN• Jobs growth/potential 2007-2012 (9,700) or growth of
almost 50%
Sector Operational Management/Specialist
Banking 3750 950
Funds 3100 1300
Insurance 500 100
Total 7350 2350
www.fsi.ie
www.ibec.ie
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
Regional Distribution
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Challenges facing Financial Services Sector
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
www.fsi.ie
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Challenges Facing IFSC
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
• Outsourcing to lower cost locations
• Erosion of tax advantages as more countries offer similar corporation tax structures
• Globalisation/EU integration
• Increasing cost base
• Capacity constraints – availability of required talent pool to support growth
• Regulatory environment and increasing cross border competition
• Drive towards financial centres London, New York
• Product complexity gravitation towards “sophisticated” markets
• Technology – new channels for distribution/increasing mobility
www.fsi.ie
www.ibec.ie
Industry Expectation of FINUAS
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
www.fsi.ie
www.ibec.ie
“provide a greater focus on specialising in a number of selected areas
which support the development of an internationally distinctivecompetence which is more aligned to a mid to high cost base”
EGFSN 2007
Short-term - address existing skills gaps to sustain growth
Longer-term - develop new capacity in high-value skills & enable strategic high-level sectoral needs
Better alignment between training and current/future business needs
Establish flexible infrastructure for addressing skills needs to respond rapidly
Key Findings of EGFSN & CHG report
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www.ibec.ie
• Upskill current and future employees in this high potential knowledge-based industry in order to:• sustain and increase market growth • maximise exports• enhance employment opportunities, enabling it to make a
significant contribution to national economic success
• Grow specialist skills base in International Financial Service
Companies in Ireland
• Creation of sector-specific programmes in higher skills
• Address any existing skills gaps
• Develop innovative learning responses for employees at all levels
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
Expectation of FS Sector
www.fsi.ie
www.ibec.ie
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
• Utilising technology for knowledge-economy & adapt to
technological change
• Support implementation of leadership & organisational
development
• Develop advanced operational processes
• Advanced technical skills in compliance, actuarial, accounting,
maths economics, etc
• Skills that foster innovation across processes and services
• Ensure training aligned to business goals
• Skills to support increasing automation/hybrid technologists
• Develop key strategic skills for future competitiveness
www.fsi.ie
www.ibec.ie
Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland
Largely based on cost of labour
“Our financial services case study is one of the largest financial services companies in Dublin with in excess of 500 employees…. The firm’s cost base is predominately made up of labour costs, which represent over three quarters of the total costs…
Successful financial services firms rely on highly professional human capital and in particular on good quality business graduates”