GUEST COMMENT: Is Ireland’s banking sector really doomed?

If you’re a pessimist, you could find plenty of reasons to feel unhappy about the state of Irish banking recruitment

Ulster Bank said last month that it will be cutting its workforce by 950 staff by the end of the year. 600 employees in the Republic of Ireland are to be made redundant, while 350 jobs are proposed to go in Northern Ireland.

Larry Broderick, general secretary of the IBOA which represents the majority of Ulster Bank staff was extremely shocked by the sheer scale of the job cuts being proposed by management

Job losses have been widely forecast in retail banking and Ulster Bank, who hasbeen seen as one of the best employers in the sector will not have taken this decision lightly. The cost pressures on all banks have been well documented, as is the need for them to return to profitability.

But is Ireland’s banking sector really doomed?

I believe the answer is no; although numbers may initially dip, in the long run, there will still be considerable job opportunities in this sector over the coming years. What will change, almost certainly, is the actual banks and financial services providers that will provide jobs here. As internet banking becomes more and more popular, there will be less requirement for the physical retail presence.

The number of players on the high street has reduced and is unlikely to return to what we saw five years ago. However, we have seen tremendous growth in the ‘funds’ and wholesale banking operations in the IFSC. The IFSC Clearing House Group’s plan for the sector targets 10,000 new jobs in the next 5 years.

Even the main retail banks retain an appetite for collections expertise, risk and credit analysts, corporate relationship managers and restructuring experts. Some salaries are showing signs of increasing for the first time in 3 years, driven by a lack of supply.

Without a doubt our Financial Services and Banking Sectors will remain a key employer. There will continue to be radical change and restructuring but that should just mean re-orientation and training for some ‘traditional’ bankers. The sector is set to remain vibrant for years to come.

As a closing observation – we at Hays have certainly seen significant levels of activity in our Banking team which has grown steadily during 2011 and this shows no sign of abating during 2012.

Allan Daly is Business Director of Hays Banking in Ireland