Episode 4: The Future of Banking in Ireland

What is the future role of banks in our economy? Although this is by no means a uniquely Irish question, the planned withdrawal of Ulster Bank and KBC from the Irish market has drawn international attention to this topic.

The current return on equity in the European banking market is comparatively weak. The withdrawal of banks from particular markets, sectors, products or customers – which is happening everywhere, not just in Ireland – is largely driven by a need to achieve greater profitability, deploy capital more effectively and re-shape the business to meet customer demand.

Ireland is a small and heavily consolidated market and there are huge opportunities for both traditional banks and newer market entrants to drive competition and innovation.

Non-banks in Ireland have already seen an increase in business from the shift in the market. Investor sentiment towards Ireland is positive, resulting in wider and more diverse sources of capital being available to provide lower cost funding and support a dramatic evolution of banking and financial services in Ireland.

Whilst newer fintech entrants can be better placed to take advantage of operational and service delivery innovations, banks retain other important assets and advantages. As such, partnership and collaboration between banks and non-banks will be as important as direct competition going forward. Building and maintaining trust are key, as is scale.

Rather than reducing competition, the current and evolving market dynamics should result in more customer-centric propositions and better access to services. One of the questions being asked is whether this is reflected in the current landscape?

What is the impact of the State's shareholdings in Irish banks, and how will the regulatory landscape need to evolve as the industry innovates?

In this podcast, Conor Houlihan (Partner and Head of Finance, Projects & Restructuring in Ireland) speaks with an expert guest panel from across the Financial Services sector about their thoughts on what the future of Irish banking looks like:

• Elaine Deehan, Country Manager for Ireland, at Starling International;
• Tom McAleese, Managing Director, Financial Industry Advisory Services – Europe, Practice Head – Ireland, at Alvarez & Marsal;
• Fergal McGrath, CEO, at Dilosk/ICS Mortgages; and
• Nadine McKeone, COO at Payzone.

The Future of Banking in Ireland

• 00,00 Introductory overview
• 02,27 The changing international landscape for banking and financial services
• 13,22 The current dynamics of the Irish market and how it compares to other European markets
• 27,46 Digital first – managing the risks
• 39,05 What does the future look like for Irish banking?

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