Over two thirds of international banks and financial services companies operating here have increased staffing in the areas of technology and innovation in the past two years.
Over 90% said they expected to spend more on technology and innovation in the years ahead with a number of firms setting up innovation hubs and labs to harness evolving technologies such as blockchain and artificial intelligence.
The findings are contained in a report compiled by the Federation of International Banks in Ireland (FIBI), an affiliate of the Banking and Payments Federation Ireland (BPFI).
The technology teams that are being established here, the report notes, are developing innovations that are being deployed across the firms' global operations.
However, a majority of international financial companies here - 73% - said they had experienced challenges sourcing key skills, particularly in the areas of regulation and compliance, digital skills and cyber risk as well as risk management and sustainable finance.
Nonetheless, 40% of FIBI firms said they expected to increase overall employment numbers this year.
The numbers employed in FIBI firms rose by almost a fifth between 2019 and this year to over 14,400 employees, according to the report.
As well as skills retention and sourcing, regulation emerged as a key challenge facing firms operating here.
"The increasing regulatory requirements including the Individual Accountability Framework / Senior Executive Accountability Regime (IAF/SEAR), the finalisation of Basel III, and new non-financial reporting requirements are placing increased pressure on firms in the sector and their employees," Fernando Vicario, Chair of FIBI and CEO of Bank of America Europe DAC said.
The report notes that while international financial services investment is mobile by its very nature, FIBI welcomes the collaboration between the industry and government and regulators to ensure that the operating environment remains as 'positive as possible' and that Ireland remains a key European and global financial hub for banking and investment firms.
The Federation of International Banks in Ireland is the representative body for over 30 international banking institutions and investment firms operating in Ireland.
Citi job cuts
The report publication coincides with news that Citigroup had informed staff yesterday of plans to cut roles across its operations here.
Brian Hayes, CEO of the Banking and Payments Federation Ireland, told Morning Ireland that it was unclear what areas of the bank would be affected but, he said, it would impact less than 170 roles out of 3,000 that the bank employs here.
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Citigroup employs a further 4,000 people in Northern Ireland.
"This is in the context of a reduction of 20,000 roles globally as part of a group restructure," he explained.
"It's disappointing for the people concerned but I'd be very confident for any job losses that might emerge that those people will find work in other financial services and banking sectors across an emerging sector that is growing year on year," he said.
Mr Hayes pointed to the skills gap across the financial services sector, particularly in the area of technological development.
He said it offered opportunities to those who may have lost jobs in the IT sector in the last year.
Figures from the CSO yesterday showed 6,000 roles had been shed across the tech industry in the year to January, bringing the total employed across the sector to just over 120,000.
The numbers employed across the financial services insurance and real estate sectors grew by over 3% in the year to 129,200.
15,000 of those are employed by international banks, Mr Hayes pointed out.
He said the numbers employed in that sector alone had grown by around 20% in the last five years, much of it owing to a "Brexit dividend".
He rejected suggestions that the dividend had been disappointing.
"Brexit showed that there was a first wave of firms who decided to use Ireland as a European headquarters. The next phase of the dividend will be about growing those businesses," he said.
