A report commissioned by the Irish Funds Industry Association last year found that 46 per cent of the 20,000 or so employees in the funds and asset management industry are now located outside Dublin; this compares to 38 per cent when the survey was last conducted in 2020, says chair Nicholas Blake-Knox.
“This is a very positive development and recognises the increasing contribution that the regions are making to our industry, with large funds hubs developing around the country, including in Cork, Limerick, Kilkenny, Donegal and other places,” he says.
One positive impact of the greater regional spread of employment evident in the industry is that it supports a wider regional dispersion of high-value jobs, with potential for knock-on impacts of high earners’ spending being felt more widely across the State.
“The industry’s credentials as a nationally distributed employment generator are evident, with nearly half of the counties in the Republic of Ireland now hosting at least one office location within the industry,” says Mary Ruane, partner and asset and wealth management leader, PwC Ireland.
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The industry employs people living in every county in the State, and this isn’t just a hangover from pandemic remote working.
“Although the pandemic encouraged many to consider moving out of big cities, numerous regional hubs in the funds and asset management industry had already been established across the country,” Ruane says, adding that they are flourishing.
“Companies benefit from access to a broader talent pool and enjoy lower operational costs compared to Dublin. For employees, the option to live outside of a big city and potentially closer to family can lead to a better quality of life, enhancing job satisfaction and wellbeing. This regionalisation supports both economic and social objectives, making it a win-win for all stakeholders involved.”
Alongside collaborations with third-level institutions, the Government’s National Clustering Programme, aligned with IDA Ireland‘s new five-year strategy, plays a significant role.
“This programme envisages the clustering of companies, third-level institutions and public sector bodies, enhancing regional development and innovation, and it would be important that the Irish funds and asset management industry be part of this Government initiative,” says Ruane.
The committee hearings around the draft bill on industrial development will be vital to creating the necessary infrastructure in regional areas, to facilitate IDA Ireland in establishing jointly owned designated activity companies to develop industrial and commercial property and infrastructure, she adds.
Regional advocacy is important too, with chambers of commerce and other stakeholders lobbying for their town or city to be the site of one of the new clusters.
Cork‘s funds industry has already experienced significant growth, and the region’s reputation as Ireland‘s second-largest financial services centre is well established. The city benefits from the presence of big multinationals in pharma, tech and professional services, creating a vibrant ecosystem. Recent research by Cork Chamber and Skillnet Ireland shows that 91 per cent of international financial services employers in Cork have grown over the past three years, and 100 per cent expect further growth in the coming two to three years.
Initiatives such as MTU’s Funds Academy and partnerships with University College Cork (UCC) are actively developing the future talent pipeline for the sector. Cork‘s graduates are entering the market with highly relevant skills in fund administration, compliance and emerging technologies like fintech and regtech.
Nick Charalambous, managing director of Alpha Wealth, a financial advisory firm based in Little Island, has observed the growth of the sector during his time in business there: “We have seen first hand the benefits of being based in Cork – access to top-tier talent, a vibrant business community, and the ability to grow sustainably.
“Cork has really emerged as a strong centre for financial services outside of Dublin, with fantastic collaboration between business, education and government. We’re seeing real momentum in talent development, infrastructure and investment, making Cork an increasingly attractive location for funds industry growth.”
However, the Republic‘s infrastructure challenges, particularly around housing and transport, remain key obstacles to future growth, despite Cork‘s recognition by the Financial Times as the number one small European city for FDI strategy in 2024.
“Solutions will be critical to ensuring Cork‘s potential as a global funds hub is fully realised,” says Charalambous.
