Eight in ten (82%) organisations in Ireland’s financial services sector report that skills gaps in financial crime and compliance are increasing regulatory[1] or operational risks[2] for the industry.
According to the findings of a new survey by Ireland's professional body for compliance professionals, the Compliance Institute, which polled 125 senior compliance experts working primarily in Irish financial services organisations nationwide, 56% compliance experts believe Ireland is not developing enough talent in compliance and financial crime to meet future demand in the financial services sector.
Headline findings from the Compliance Institute survey reveal that:
- More than half (51%) believe the financial services sector does not have enough sufficiently qualified professionals to meet the sector’s growing regulatory obligations and to deal with the developing challenges around financial crime (see Table 1 in Appendix).
- One in ten (10%) report that there are “significant shortages” in the number of skilled professionals available to ensure financial services firms can combat financial crime and meet their various regulatory obligations.
- Almost one in five (18%) say that talent shortages in the areas of compliance and financial crime functions are “significantly” increasing regulatory or operational risks for Irish financial services firms (see Table 2 in Appendix).
- Less than half (44%) believe that Ireland is developing enough talent in the area of compliance and financial crime to meet future demand in the sector (see Table 3 in Appendix).
Commenting on the survey findings, Michael Kavanagh, CEO of the Compliance Institute said:
“At a time when financial crime is becoming more complex, sophisticated and global, it’s concerning that the overwhelming majority of compliance experts believe that talent shortages in the areas of financial crime and compliance are increasing regulatory and operational risks for the Irish financial services sector.
The results of our survey suggest that skills gaps in the Irish financial services sector mean that many organisations may be already finding it hard to find people with the right skills to combat financial crime.
Financial crime is increasingly digital in nature, faster to execute and more complex to detect, and furthermore, AI has made the task of tackling financial crime even more challenging. So, it’s crucial that financial services institutions have the right firepower to combat financial crime and a key part of this is suitably qualified staff and well-resourced compliance teams.
It’s equally important that the financial services sector has access to suitably qualified compliance staff. The overwhelming volume and pace of regulatory changes often puts significant pressure on compliance teams in the sector. The sheer breadth of regulations demands a significant allocation of time, expertise, and operational focus, often stretching teams to their limits. It has never been more important for the industry to have access to the right talent.”
Mr Kavanagh cited a report published by Indecon two years ago[3], which warned that the international financial services sector in Ireland could be short between 800 and 4,300 suitably qualified graduates a year by 2027. That report recommended that a number of steps be taken, including that a skills framework be developed for the sector, that better opportunities are created for staff to upskill and reskill, and that more efforts would be made to attract talent from outside the country.
Mr Kavanagh added:
“Our survey shows that the recommendations made by Indecon’s ‘Skills for International Services’ report two years ago are as relevant today as they were back then. The Irish financial services sector is of huge importance to Ireland and it is essential that this country develops the skills necessary to support the sector’s future growth – and also, to protect it. Firms of course need to take steps themselves to ensure their staff are adequately trained and have the know-how to combat the regulatory and operational risks faced by the Irish financial services sector. But there also needs to be a concerted effort by the government and industry to invest more in talent so that the Irish financial services sector can truly prosper and navigate all the challenges that comes its way.”
