Ireland’s international banking sector set for further growth this year, with 67% of firms expecting to increase business activity, despite geopolitical uncertainty and intensifying competition – FIBI
- Employment in FIBI member firms up by over 20% in the last year, with almost 17,700 people employed in 2026
- €6.5bn spent directly in the Irish economy by foreign-owned business and financial services firms in 2024
- Two-thirds of FIBI members cited heightened geopolitical tensions and half cited regulatory burdens as the biggest challenges in the next five years
- AI adoption is accelerating sharply, with 88% of survey respondents now using AI, up from 71% in 2025
Wednesday 24th June 2026 – Ireland’s international banking sector is set for further growth this year, according to a new report published today by the Federation of International Banks in Ireland (FIBI), with 67% of FIBI firms expecting to increase business activity and 44% expecting to increase their employee numbers in 2026. However, the external environment continues to present significant challenges with an increasingly disrupted geopolitical environment, intensifying global competition and a complex regulatory landscape.
Ireland is currently the seventh largest exporter of financial services in the world
Highlighting the key findings of the report, Davinia Conlan, FIBI Chair and Citi Ireland Country Head, said: “Ireland is now firmly established as a major European and global hub for international banking and investment firms and is currently the seventh largest exporter of financial services in the world. The economic contribution made by these firms is very significant with foreign-owned business, financial and other services firms responsible for €6.5 billion in direct spending in the Irish economy in 2024. That contribution is set to grow further with 67% of respondents to a recent FIBI member survey expecting the level of business activity in their Irish operations to increase in the year ahead. This positive outlook is also reflected in employment, with FIBI member firms currently employing almost 17,700 people, up over 20% compared to last year, and 44% of survey respondents expecting their firms to increase employee numbers during 2026.”
Risks presented by geopolitical tensions, regulatory burden and competitiveness seen as key challenges
On the challenges faced by the sector Conlan continued: “The external environment continues to be challenging. FIBI members are keenly aware of the risks presented by economic uncertainty, supply chain disruption and trade protectionism with 67% of survey respondents identifying geopolitical tensions as a challenge. Closer to home, the overall regulatory burden remains a significant challenge, cited by half of FIBI members. Regulatory simplification has long been a priority for FIBI and its members. This is not about reducing regulation or weakening its application, but about cutting complexity and unnecessary duplication. Done well, simplification can support stronger compliance, better regulatory outcomes and more effective use of supervisory resources. In that context, the simplification measures being advanced by the European Banking Authority, the European Central Bank and the Central Bank of Ireland are welcome. However, our survey points to a clear appetite across the industry for further and faster progress, particularly on duplicative reporting, gold-plating and fragmented supervisory requirements.”
“Beyond regulation, our survey highlights a strong mandate for Government to renew its focus on the competitiveness of Ireland’s international financial services sector. As global uncertainty rises and competition between jurisdictions intensifies, delivery on key competitiveness priorities is becoming increasingly important. Ireland’s success as an international financial services hub has been built on foresight, agility and delivery. Sustaining that success will depend on timely, coordinated action. In that context, Ireland’s Presidency of the Council of the European Union offers a valuable opportunity to show leadership on competitiveness, particularly by championing simplification and the mobilisation of private capital to reinforce Ireland’s position as a competitive and credible location for international banking and financial services firms.”
AI adoption is accelerating sharply, with 88% of survey respondents now using AI, up from 71% in 2025
Turning to opportunities within the sector, Stephen Ring, Head of Capital Markets & International Banking stated: “Members identified opportunities in cybersecurity, regtech, fintech and AI as well as savings and investment – areas where Ireland can build on its technology strengths and international financial services expertise. AI adoption in particular is accelerating sharply, with 88% of survey respondents now using AI, up from 71% in 2025. More than half are deploying AI across operations and IT, risk and compliance, and legal functions.
At the same time, advancing savings and investment initiatives, including the Savings and Investments Union and the development of deeper retail investment markets, is now of critical strategic importance. In that context, mobilising capital more effectively to support innovation, productivity and long-term growth will be vitally important for Europe’s competitiveness and Ireland’s role within it.”
Ireland’s future as a global financial services hub will depend on our ability to deliver a domestic agenda built on simplification, skills and speed
Reflecting on the broader outlook for the sector, Conlan concluded: “The challenges and opportunities facing the industry may be familiar, but what is different in 2026 is the urgency. External uncertainty has increased, peer competition has intensified, and the scope for action has narrowed. Ireland’s financial services sector will continue to make a positive contribution to the Irish economy in the years ahead. This will not happen on its own, however. It will require continued engagement and collaboration between all the key stakeholders to ensure Ireland continues to provide the environment which makes it a location of choice for the international banking industry.”
ENDS/
The FIBI Report 2026 is available to download here.
About FIBI: The Federation of International Banks in Ireland (FIBI) is the forum and representative body for international banking and investment firms in Ireland, representing over 30 international banking institutions and investment firms. FIBI works with members and stakeholders to shape and influence the future agenda and policy, and regulatory environment for the rapidly expanding international financial services sector in Ireland. An affiliate of BPFI, the Federation members include many of the largest financial service providers in the world and collectively employ over fourteen thousand people in Ireland. FIBI is the principal voice of the international banking and investment firms sector in Ireland.
About BPFI: Banking & Payments Federation Ireland (BPFI) represents the banking, payments and fintech sector in Ireland. Together with its affiliates, the Federation of International Banks in Ireland, and the Fintech & Payments Association of Ireland, BPFI has over 120 member institutions and associates, including licensed domestic and foreign banks and institutions operating in the financial marketplace.
Contact: Fiona Murphy, Head of Communications, fiona.murphy@bpfi.ie or Jillian Heffernan, Director of Communications, jillian.heffernan@bpfi.ie.
