PwC predicts 5,000 more jobs in funds and fintech
AN EXTRA 5,000 jobs in asset management and fintech have been forecast for Ireland by 2023 thanks to Brexit-driven migration and growing global demand for ethically managed portfolios.
PwC's leader of global asset and wealth management, Olwyn Alexander, makes the prediction in a PwC report published today on asset management trends worldwide.
"Overall, we anticipate the increased job potential for Ireland in asset management and related financial technology sectors to be approximately 5,000 over the next three years," said Ms Alexander, who is also a partner in PwC's Irish Funds Management Practice.
"We are seeing greater demand for investment in ESG (environmental, social and governance) funds. Investors are increasingly more aware about investing in a sustainable future as they continue to drive down fees in the search for greater efficiencies," she said. "As clients continue to align their personal interests and values with how they invest their money, ESG investing is now a must-have, not a nice-to-have, option when constructing an investor's portfolio."
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PwC provided the Irish Independent with a more detailed breakdown of its 5,000 jobs forecast. It says more than 100 fund management firms already are expanding operations in Dublin as their preferred post-Brexit base for EU market access.
The consultancy expects to see these firms progressively add roles in risk management, compliance, research, fund oversight, governance, internal audit and finance.
Firms providing outsourced asset management services also are expected to grow in size and number, PwC predicts, as will fintech firms focused on regulatory technology, fund management and fund administration.
This growth, in turn, will underpin new professional services roles in law and accountancy firms.
While more than half of new positions are expected to cluster in Dublin, PwC says Cork, Galway, Kilkenny, Limerick and Wexford also will benefit from growth in fintech and asset management roles.
The PwC report highlighted the growing importance of providing ESG funds as investors seek an ethical foundation for their investment products.
The report, reflecting the views of 10,000 retail investors and 750 institutional investors, found they "no longer see financial return in isolation from other factors".
PwC estimates that ESG mutual funds are expected to grow in value by 8.5pc annually to top $2 trillion (€1.8 trillion) in assets by 2025.