1. FINUAS Network Meeting 22 July 2009 Brendan Kelly, Director Financial Services Ireland

2. 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

3. www.fsi.ie www.ibec.ie Importance of FINUAS Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland

4. www.fsi.ie www.ibec.ie Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland Key Sectors within International Financial Services Banking Investment Funds Insurance Asset Financing Treasury Securitisation Administration Custody, Trustee, Client Services Reinsurance Life/Non Life Insurance

5. 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 4 th largest services export sector (Forfas)

6. 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

7. 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% SectorOperationalManagement/Specialist Banking3750950 Funds31001300 Insurance500100 Total73502350

8. www.fsi.ie www.ibec.ie Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland Regional Distribution

9. www.fsi.ie www.ibec.ie Challenges facing Financial Services Sector Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland

10. www.fsi.ie www.ibec.ie 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

11. www.fsi.ie www.ibec.ie Industry Expectation of FINUAS Confederation House | 84/86 Lower Baggot Street | Dublin 2 | Ireland

12. 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 distinctive competence 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

13. www.fsi.ie 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

14. 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

15. 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”