Irish finance firms are investing in core operating systems to withstand prolonged periods of instability due to geopolitical tensions, according to a new report from global law firm DLA Piper.
The report surveyed 800 senior “decision-makers” at global financial firms, including banks, fund managers, fintechs, and market infrastructure, with revenues ranging from under $10 million to more than $10 billion, including 30 in Ireland.
The report said financial services sector firms are also adapting systems to deal with trade barriers and shifting regulatory requirements.
Separately, the report found Irish finance firms are significantly more concerned about financial crime than their international counterparts.
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A focus on risk and compliance is more marked in Ireland, where 67 per cent of firms cite financial crime among their top three challenges compared with 45 per cent globally, while 70 per cent cite cybersecurity and data protection risks compared with 48 per cent globally.
Irish firms appear especially focused on implementation of artificial intelligence with 87 per cent investing in the required technology compared with 66 per cent globally.
Eight in 10 provide training and guidance for existing staff compared with 58 per cent globally, while 70 per cent are developing ethical frameworks compared with 49 per cent globally.
Driven by EU regulations such as the green asset ratio, 77 per cent of firms in Ireland identify the development of sustainable finance products and equity and debt investments as a key opportunity compared with 57 per cent globally.
Leaders of financial services sector firms also report opportunities for growth persist in the sector despite growing challenges from trade barriers, cybercrime, and geopolitical disruption.
The report suggests overall optimism “remains strong”, with companies addressing ongoing disruption as “the new normal”.
“Irish financial services firms are feeling heightened exposure to financial crime and cyber risk, which is reflective of their global connectivity and increased cross-border threats,” said Chris Jessup, financial services regulatory partner at DLA Piper Ireland.
“EU regulation is also shaping strategy, pushing these firms to embed risk, compliance and sustainability into decision-making.
“In response to this ongoing regulatory and geopolitical disruption, it is crucial that firms prioritise governance, operational resilience, and invest strategically in technology to remain competitive.”
