Tag: financial

Irish tech company Miagen to help elite football clubs avoid financial ruin

Miagen, the leader in financial modelling technology solutions, today announces the launch of a solution that will help Europe’s football clubs to comply with financial sustainability rules. With football clubs across Europe facing mounting financial scrutiny and risking crippling sanctions, the solution, SportsGen will help clubs to navigate their finances, protect their long-term survival and save up to €3M on wages per season.

Financial sustainability rules have shaken up the world of football recently, after a number of clubs were docked points and even rendered bankrupt for falling foul of them. The rules, which mostly apply to European and English football leagues, were introduced to ensure football clubs operate within their financial means, promoting long-term financial stability and preventing reckless spending.

SportsGen is a financial planning & analysis (FP&A) platform built for mid-tier and elite football clubs. Miagen estimates that that insights enabled by its software can help clubs to increase match-day revenues by up to 10%. The platform enables clubs to see missed revenue opportunities – including those relating to attendance, pricing and scheduling – so they can implement new strategies to optimise ticket sales.

SportsGen’s real-time financial insights are enabled by integrating live data from ticketing, sponsorships, broadcasting and merchandising. It allows clubs to model different league finishing positions, assess financial implications, and stay within spending limits to avoid harsh penalties like point deductions and relegation. With smart forecasting for wages, transfers and operational costs, SportsGen helps clubs to make informed decisions during transfer windows and remain competitive while staying compliant with financial regulations. Additionally, Miagen is already planning updates that will integrate AI-driven player valuation and scouting insights.

The new solution comes on the back of Miagen’s dominance in financial modelling for the world’s aircraft leasing market. The Dublin-based company’s financial modelling platform, LeaseGen, is now used for one in five of the global leased aircraft fleet.

Brian Byrne, COO, Miagen, said: “Football is no longer just about success on the pitch; it’s about sustainability off it. Clubs are making high-risk financial decisions on transfer spending, wage structures and operational costs, but often without the right tools. The stakes have never been higher, as financial miscalculations can mean relegation, massive revenue losses and even club extinction.

“Football clubs are more than just businesses; many have been at the heart of communities for more than a century. They bring people together and are playing a major role in funding and supporting women’s sport. Through better financial planning with SportsGen, they can make even greater progress on this work and ultimately, ensure they thrive in today’s uncompromising football economy.”

About Miagen

Miagen is a consultancy firm specialising in agile business planning solutions that empower finance to lead using real-time business and industry insights. It has developed industry-specific solutions that enhance business performance and unlock competitive edge.

For more information, visit www.miagen.com

8 in 10 financial services firms concerned about accountability of AI-driven decisions

More than eight in ten (81%) financial services organisations using Artificial Intelligence (AI) have adopted the technology for customer service purposes, while three in ten (29%) use the technology to prevent and detect fraud, with a similar number (29%) applying it to risk assessment.

However, despite its growing use, key concerns remain, particularly around accountability and the potential for bias in AI-driven or AI-influenced decisions. Data privacy risks associated with AI also rank high among the sector’s concerns.

This is according to the results of a new survey by Ireland’s professional body for compliance professionals, the Compliance Institute, which polled approximately 150 compliance experts working primarily in Irish financial services organisations nationwide.

When asked what concerns, if any, they had regarding the use of AI in compliance and financial services:

  • More than eight in ten (81%) compliance experts said that are concerned about the accountability and explainability of AI-driven decisions
  • Seven in ten (69%) are concerned about the potential for bias in AI decision-making
  • Six in ten (59%) are worried about data privacy and GDPR compliance risks
  • Almost six in ten (56%) are concerned about a lack of regulatory clarity around AI.

Commenting on the survey findings, Michael Kavanagh, CEO of the Compliance Institute said:

“Given that chatbots and virtual assistants are such a common sight when surfing the internet today, it’s perhaps no surprise that our survey shows that of those organisations using AI, customer service is the main reason they do so. However, it is interesting too the level of disquiet around the use of AI in organisations, particularly around AI bias and the accountability of AI-driven decisions, perhaps suggesting an inherent distrust of AI. Ultimately, AI will never be able to replicate the empathy that humans can bring to decision-making – as well as the nuanced approach they can take.

While AI can have many benefits for the financial services sector, including its ability to detect fraud and to reduce customer service costs, its fast-growing capabilities and increasingly widespread use have raised concerns, particularly around privacy and misinformation issues and the lack of regularity clarity around AI.”

 

Other headline findings from the Compliance Institute research reveal that:

  • AI-driven tools are not yet widely adopted in the financial services sector, with only 2% of organisations using them extensively and 18% using them on a limited basis.
  • More than half of the firms (54%) are considering AI for compliance monitoring, fraud detection, or risk management.
  • More than one in four (27%) have no plans to implement AI tools in the near future.
  • Among organisations currently using AI, its use in personalised financial products (10%) or trading and investment strategies (3%) is less commonplace.

Mr Kavanagh added:

“With only one in five organisations using AI tools, and most of these only doing so on a limited basis, the financial services sector is clearly cautious about the use of AI in firms.  The finding that more than half (54%) of the firms surveyed are considering AI for compliance monitoring, fraud detection, or risk management shows that many in the financial services sector have not ruled out AI – but they are being careful about if and how they might do so. This suggests that there is a strong awareness in the sector of the risks of AI and a determination to ensure the technology is used responsibly.

This is a positive reflection of the sector. While AI has the potential to deliver many benefits, it is important that AI is used in a safe and transparent way, and that the use and adoption of the technology is overseen so that harmful outcomes are prevented.”

3 ways financial modeling software can streamline corporate financial management

With the growing volumes of financial data and the rapidly changing market conditions, financial decision-making has become unprecedentedly challenging at both tactical and strategic business levels. But what if you could calculate the impact of your future financial choices on your business? Undoubtedly, it would greatly improve financial planning and management processes in your company and help reduce financial losses.

Luckily, no magic is needed to predict the future in corporate finance today. Instead, CFOs and finance teams can use software for financial modeling equipped with mathematical models that help assess the current economic performance of their companies and predict how it might change in different economic scenarios.

What is financial modeling software?

Financial modeling software offers templates replicating common financial models (the three-statement model, the leveraged buyout model, etc.), tools for building bespoke financial models, or both. Since models need relevant financial data to make accurate findings and forecasts, these solutions also typically provide robust integration capabilities, enabling them to exchange data with other tools. 

Beyond the highlighted software functionalities, financial modeling systems can offer a range of other capabilities useful for finance management professionals. These can include data visualization to arrange insights from financial data in the form of graphs or charts, scenario analysis to compare different possible financial scenarios, collaborative analytics to share data and insights with colleagues, and many other features.

How can financial modeling software elevate corporate financial management?

1. Improving capital budgeting

Capital budgeting is one of the most critical yet daunting aspects of corporate financial management. Capital projects require long-term substantial investments, and if such a project turns non-viable or fails, the company risks facing financial losses, which can be devastating for business.

Therefore, financial professionals should evaluate possible capital budgeting options with extra caution. And by using financial modeling software, financial professionals can leverage ready-made model templates or build their own models to efficiently evaluate investment opportunities from multiple perspectives, which can help your business make more risk-free and rewarding capital budgeting decisions.

For example, suppose your company is considering acquiring some other business. In such a case, finance teams can use a discounted cash flow model to evaluate that company’s financial health and predict its future financial performance by analyzing the business’s revenue, expenses, and taxes. Teams can simply import the company’s publicly available financial data (balance sheet, income statement, cash flow statement, etc.), and the financial modeling tool will automatically perform all necessary calculations.

Teams can additionally assess an investment’s return potential by using a leveraged buyout model, which also takes into account a target company’s  common financial metrics and combines them with the amount of borrowed money required to fund the deal. Additionally, they can apply a trading comps model, which implies comparing a target company’s financial ratio with other firms from the same niche, helping you choose the most promising and rewarding investment opportunity.

2. Streamlining capital financing

Besides choosing a project to invest in, finance teams must decide how the company should raise funds to support its business operations (taking a bank loan, selling some share of its stock, or else). 

Suppose your company decides to issue common stock through an initial public offering (IPO) to leverage new sources of capital. The company must decide what share of its business it should sell to the public to raise a larger amount of cash, which can later be used to pay off a company’s existing loans or fund internal research and development initiatives. In this case, the finance team can use an IPO modeling template to model various IPO scenarios and estimate the potential for future capital raise.

3. Enhancing working capital management

Among other things, financial teams should make accurate decisions regarding working capital management to help their companies optimize the utilization of existing assets. The decision-making process in capital management requires careful monitoring of both overall company performance and the performance of individual assets.

In this regard, financial modeling software can come in handy, as teams can use it to measure and project their company’s financial performance. Finance professionals can simply leverage the same type of model they would use to assess the value of other businesses or investments, namely the discounted cash flow model, but feed it with internal financial data.

Teams can also implement a ready-made template or a custom formula to calculate the return on a company’s assets. The return on assets ratio allows financial professionals to estimate the percentage of a company’s assets that are profitable and to predict how the economic performance of their assets can change over time. If the future earnings of some specific assets are lower than expected, a company can decide to sell those assets to another business and thus adjust the corporate financial portfolio.

Final thoughts 

Making financial decisions in corporate finance is a challenging duty for any finance team, which nonetheless can be streamlined with the help of financial modeling software. Financial professionals can use these digital tools to make capital budgeting, capital financing, and working capital management decisions more accurately and quickly. 

Nonetheless, if your company decides to implement a financial modeling tool, it should first have to decide whether to adopt a platform solution from Microsoft, IBM, and other vendors or develop software from scratch. Since both options differ significantly in their complexity and cost, you should choose carefully. A reliable technology partner can analyze your business and study its established financial processes to help you make a sounder choice. If needed, the partner can also assist you with the implementation itself and handle all its technical aspects, from software architecture design and coding to solution customization and integration.

 

Irish Firms Embrace Responsible AI: Adoption of Guidelines Doubles in 12 Months

In the last 12 months, there has been a notable jump in the number of financial services firms in Ireland implementing guidelines to ensure the responsible use of Artificial Intelligence (AI). New research reveals that twice as many compliance experts as last year now report that their firm has adopted such measures.

This is according to the results of a new survey by Ireland’s professional body for compliance professionals, the Compliance Institute, which polled 144 compliance experts working primarily in Irish financial services organisations nationwide.

The survey, which examined trends around AI, found that this year, 16pc of compliance professionals said that an AI governance framework (an infrastructure with clear guidelines and standards to ensure that AI technologies are used responsibly) was in place in their organisation – up from 7pc in 2024

However, the Compliance Institute survey also found that there has been a fall in the take-up of AI tools in the financial services sector over the last year, with the number of compliance professionals saying their organisation is actively trialling and/ or using AI tools falling from almost four in ten (37pc) in 2024 to just over one in four (26pc) in 2025. This suggests a more cautious approach towards the use of AI within organisations.

Commenting on the survey findings, Michael Kavanagh, CEO of the Compliance Institute said:

“AI is a rapidly evolving technology that has advanced at a pace few anticipated. While there are many benefits, including its ability to detect illnesses and diseases as well as weather patterns and extreme storms, its fast-growing capabilities and increasingly widespread use have raised concerns – such as privacy and misinformation issues, the potential of the technology to lead to job displacement, or even the risk of AI-altered images and videos disrupting the democratic process. While many believe AI should be embraced for the benefits it delivers, it is important too that AI is used in a safe and transparent way, and that the use and adoption of the technology is overseen so that harmful outcomes are prevented.

The increase in the number of financial services firms that have put guidelines in place to ensure AI is used responsibly in their organisation shows that there is a strong awareness in the sector of the risks of AI and a determination to ensure the technology is used responsibly.”

Groundbreaking Legislation

The Compliance Institute survey also found that three times as many compliance experts as last year are aware of the groundbreaking piece of legislation that aims to tackle the risks of AI and ensure AI is used safely and transparently – the EU Artificial Intelligence Act.

Almost one in four (23pc) compliance professionals are familiar with the legislation today compared to only 7pc in 2024. However overall, awareness of the rules is still low with just over two-thirds (67pc) of compliance experts having either limited or no knowledge of the new legislation. The poll found there has been a substantial decrease in the number of experts with limited knowledge of the new rules – down from 58pc in 2024 to 29pc in 2023. However, almost three in ten (28pc) said they were not familiar with the legislation.

Mr Kavanagh added:

“It is important that there is strong regulation of AI and this is why the new EU AI Act is so important. This regulation should ensure that AI systems are designed, developed and deployed in an ethical and trustworthy manner and that the fundamental rights, health and safety of the individual are protected while promoting responsible innovation.

While our survey shows there’s been a notable increase in familiarity with the AI Act over the last year, it is worrying that only one in four (23pc) are familiar with the legislation and that almost three in ten are not. The reasons for this lack of familiarity could simply because many compliance experts work in smaller organisations or in a specialist area that doesn’t deal with AI.  All the same, given that the AI Act entered into force on August 1, 2024 and will for the most part be fully applicable across the EU on August 2, 2026, it is important that all compliance experts get up to speed with these new rules. Non-compliance with the Act’s provisions could result in hefty fines ranging from €7.5m to €35m depending on the severity of the infringement and the company’s size.”

Other headline findings to emerge from the Compliance Institute survey include:

  • Almost seven in ten (67pc) compliance professionals say their organisation is not adopting AI tech “so far” – an increase on the 60pc who said this was the case when a similar survey was conducted in 2024.
  • While numbers were small, more than twice as many compliance professionals as last year believe that their organisation will not be using AI tools in the near future (7pc versus 3pc).
  • The percentage of organisations actively developing AI frameworks has fallen from 24pc in 2024 to 17pc in 2025.
  • The number of organisations planning to develop AI frameworks remains stable (40pc in 2025 versus 39pc in 2024).
  • The percentage of organisations that have no plans to implement AI governance frameworks has largely remained the same over the last year (27pc in 2025 versus 30pc in 2024).

Mr Kavanagh concluded:

“The findings of our survey reflect a growing awareness and action on the governance of AI across the financial services sector, though progress is still in its early stages for many organisations.”

Top Tips for Safeguarding Sensitive Data in the Financial Services Industry

The modern business landscape demands increased vigilance to protect sensitive records and confidential information. Organizations that handle vast amounts of personal and operational data face mounting challenges, particularly with the rise of sophisticated breaches. The stakes are high in terms of financial losses and in maintaining client trust and organizational reputation. Protecting this data is no longer just about compliance with regulations. It’s about safeguarding the foundation of business operations. For institutions managing high-value data, adopting advanced measures and leveraging innovative strategies is critical. 

Here’s how you can effectively mitigate risks while fostering a culture of security:

Understand Regulatory Requirements

Meeting regulatory obligations is a cornerstone of maintaining operational integrity and security. Various frameworks, such as GDPR (General Data Protection Regulation) and PCI DSS (Payment Card Industry Data Security Standard), outline specific requirements to protect personal and transactional data. Compliance with these standards minimizes the risk of breaches, reduces potential fines, and reassures clients that their information is in safe hands.

For businesses in highly regulated sectors, keeping pace with evolving guidelines is essential. This involves conducting regular audits, maintaining transparency, and documenting processes to demonstrate accountability. Beyond avoiding penalties, adherence to these frameworks helps organizations align their security practices with industry expectations, building a strong defense against unauthorized activities.

Partnering with Experts in Data Protection

Collaborating with specialized security providers can significantly improve an organization’s ability to protect its operations. Advanced platforms offer critical services, such as monitoring threats, identifying vulnerabilities, and enabling rapid responses to incidents. These solutions also provide real-time insights, helping businesses anticipate and prevent potential risks before they materialize.

A trusted provider can deliver customized tools designed to fit an organization’s specific needs, ensuring robust defenses against even the most targeted attacks. Cybersecurity for financial services is particularly vital in protecting high-value assets and managing complex threats. By outsourcing security functions to experts, businesses can focus on their core operations while maintaining a strong shield against evolving risks.

Implement Strong Authentication Measures

Passwords alone no longer offer adequate security for safeguarding accounts and systems. Many breaches occur because of weak or stolen credentials, highlighting the need for additional layers of verification. Multi-factor authentication (MFA) has become a standard practice for securing access to critical systems. This approach requires users to verify their identity using two or more methods, such as biometric scans, one-time passwords, or physical tokens.

Advanced authentication methods, like biometric systems, enhance protection and streamline the user experience. For instance, fingerprint or facial recognition technology eliminates the need for complex passwords, making it easier for authorized users to access their accounts securely. Businesses prioritizing these measures demonstrate their commitment to protecting internal operations and customer accounts.

Regularly Update and Patch Systems

Keeping software and systems up to date is fundamental for any organization seeking to minimize vulnerabilities. Cybercriminals often exploit outdated software, leveraging known weaknesses to gain access to critical data. Regular updates and timely patches address these gaps, ensuring systems remain protected against the latest threats.

Organizations should implement automatic updates for essential applications and establish a structured testing process to verify their effectiveness. Routine system audits can identify any lingering vulnerabilities and guide necessary improvements. By maintaining current software versions and prioritizing patches, businesses can significantly reduce the risk of breaches caused by preventable flaws.

Educate Employees on Security Awareness

Employees play a pivotal role in protecting an organization’s data and systems. Despite advanced tools and protocols, human error remains one of the leading causes of security incidents. Phishing scams, social engineering tactics, and poorly managed credentials can all lead to breaches if employees are unprepared.

Regular training programs are crucial to fostering a culture of awareness. These sessions should cover topics such as identifying phishing attempts, practicing safe browsing habits, and managing personal device usage in professional settings. Interactive workshops and real-world simulations can make the learning process engaging and impactful. A well-informed workforce acts as a frontline defense, significantly reducing the likelihood of successful attacks.

Also, organizations should provide employees with clear guidelines for reporting suspicious activities. By cultivating an environment where staff feel empowered to take proactive steps, businesses can improve their overall resilience against security risks.

Encrypt Data at Every Stage

Encryption is one of the most effective tools for securing information from unauthorized access. It involves converting data into unreadable code, ensuring only authorized parties can decrypt and access the information. This practice protects data during storage and as it moves across networks.

Financial organizations, in particular, handle large volumes of sensitive client information, making encryption essential. Employing strong encryption protocols for emails, transactions, and stored files can significantly reduce the risk of breaches. For businesses with remote teams or cloud-based operations, end-to-end encryption adds another layer of security, ensuring that data remains protected even if intercepted. Regularly updating encryption protocols and training staff on their importance are critical steps in maintaining robust data security.

Conduct Regular Risk Assessments

Risk assessments are a proactive way to identify and address vulnerabilities before they become liabilities. These evaluations involve analyzing systems, identifying weak points, and implementing strategies to mitigate potential risks.

For organizations in the financial sector, regular assessments should include reviewing internal policies, auditing third-party vendors, and testing the resilience of existing security measures. Tools like penetration testing can simulate attacks, revealing areas that need improvement. Periodic evaluations help maintain a secure environment and ensure compliance with evolving regulations. A consistent review process strengthens an organization’s ability to adapt to emerging challenges and maintain trust with clients and stakeholders.

Protecting confidential information in today’s landscape requires a comprehensive and proactive approach. From implementing encryption and robust authentication to collaborating with experts and conducting regular assessments, businesses must remain vigilant. A focus on education and collaboration across all levels of an organization further strengthens its defenses. By adopting these strategies, institutions can build a resilient framework that safeguards their operations and reinforces client trust. Prioritizing security is not just a necessity. It is a commitment to maintaining long-term success.

Nine in ten CFOs in Ireland feel decisions about financial strategy are made without sufficient data or insight

An overwhelming majority (90%) of CFOs and finance leaders in Ireland feel that decisions about their organisation’s financial strategy are made without sufficient data or insight, according to a new CFO Mindset Report by AccountsIQ, an award-winning provider of cloud-native accounting software for mid-sized businesses.

The survey of 260 CFOs across Ireland and the UK highlights the increasing pressures facing finance leaders, with many reporting a growing sense of stress and instability as they navigate economic volatility, rising operational costs, and unpredictable revenue.

CFO challenges

The survey determined external factors currently facing CFOs and other senior finance professionals. In Ireland, the top threats to financial stability are technology and software disruptions (42%), market competition (38%), and economic downturn (38%). However, concerns about financial decline are markedly lower than in the UK (48%), where it ranked as the most pressing matter of contention.

When it comes to internal challenges, more than a third (34%) of CFOs in Ireland and the UK report technological limitations as the biggest threat to their organisation’s financial stability. In Ireland, other prominent issues include a lack of skilled talent (34%), being behind on targets (34%), reporting accuracy (30%), and the time spent on manual data input (30%).

Despite differences in contributing factors, internal and external pressures are making it increasingly difficult for finance leaders across Ireland and the UK to maintain control over their organisation’s financial future, significantly limiting the potential for long-term operational success in both countries.

Operating in survival mode

While 70% of CFOs in Ireland and 58% in the UK say their finance function is scaling up to meet business growth demands, 16% describe it as actively slowing down. More than a third (38%) of all respondents state that better financial technology and software would most help them regain control, underlining the urgent need for organisations to implement improved financial tools.

Darren Cran, CEO of AccountsIQ, commented: “The need for modern solutions is clear. CFOs are facing immense pressure to make strategic decisions in the dark, without the right data or technology to support them. It’s a problem across the board but is particularly prevalent in Ireland. The sheer scale of the challenges they’re up against – from volatility to rising costs – is forcing them to operate in survival mode rather than driving growth. This is where finance leaders urgently need better tools and insights – and the good news is, they are out there. These tools can build trust in the numbers and give CFOs the confidence to make informed decisions. It also empowers CFOs to shift from firefighting to forecasting, taking back control of their financial plans and driving sustainable business growth.”

You can download the full report here

More than a third of Irish consumers would put off saving to buy a house in favour of more immediate satisfaction

Research in conjunction with Revolut, the global financial app with more than 45 million customers worldwide, and over 2.8 million in Ireland, has found that more than a third (36%) of consumers in Ireland would put off saving to buy a house in favour of medium to short-term satisfaction.

Asked what big spending projects they would consider putting off in favour of instant gratification, consumers across Ireland also claimed that both their own wedding (17%) and having children (14%) could also fall by the wayside in favour of more immediate satisfaction.

The survey, conducted by market research company Dynata, asked a random sample of 1,000 consumers across Ireland, with the findings representative of people from every county.

These revelations come as 11% of Irish savers also pointed to low interest rates as the main challenge facing them when trying to put aside money. Meanwhile, just short of one in five Irish consumers (19%) claim inflation is stifling their savings.

12% of respondents believe they will never be able to consistently save enough to fund these kinds of big life projects, and therefore prefer to enjoy medium to short-term satisfaction.

Revolut launched its Instant Access Savings accounts in Ireland at the end of May, offering customers competitive interest rates across all its different plans, with interest paid out daily.

Maurice Murphy, General Manager at Revolut Bank UAB – Ireland Branch, said: “Every bank’s mission should be to give its customers the opportunity to build their own financial wealth. With Revolut, consumers all across Ireland can get a good return on their deposits to ensure that they don’t need to miss out on or put off those big life moments such as buying a home, having children, or getting married. Revolut savers on all of our plans benefit from really competitive interest paid out to them daily, as well as immediate access to their money.”

Revolut Bank UAB (Irish Branch) was recently recognised by financial comparison site Bonkers.ie as ‘Ireland’s Best Consumer Business’ and ‘provider of the Best Current Account’, while the company ranked 9th as part of the Ireland RepTrak® 2024 study earlier this year.

For more information, visit: www.revolut.com/en-IE

Google’s approach to help tackle online scams and fraud in Ireland

Google is making changes in Ireland to help tackle online scams and fraud, including some detail on Google’s broader approach to tackling these issues. Preventing fraud and scams on its platforms is critically important to Google.

About the update

  • Google will shortly notify customers that it is updating its financial services verification process to introduce new requirements for advertisers promoting financial services in Ireland.

  • The update will allow Google to require Financial Services advertisers to complete verification based on their authorisation from the Central Bank of Ireland or other appropriate regulator. Advertises who are required to complete the process and do not, will not be allowed to show financial services ads. Google is working with customers to ensure this process goes smoothly.

  • This change is part of Google’s ongoing efforts to tackle fraudulent or scam ads.

Google’s broader approach

  • Preventing fraud and scams on our platforms is critically important to Google. Fraudsters are constantly evolving their tactics – both online and off – to try to scam people and businesses alike.

  • Google is tackling this adversarial behaviour in a number of ways including:

    • Introducing and updating policies and programs to prevent abuse including Google Ads Policy, advertiser identity verification program and business operations verification program.

    • Investing in technology to better detect coordinated adversarial behaviour, allowing Google to connect the dots across accounts and suspend multiple bad actors at once.

    • Improving its automated detection technology and human review processes based on, for example, previous account activity and user feedback.

  • We know we are successfully preventing many bad advertisers from placing ads – you can read more detail in our latest ads safety report – but, as you know, this is a complex and evolving challenge and we must constantly find ways to improve.

  • We continue to work closely with industry partners, regulators, policymakers and other stakeholders.

1 in 3 financial service organisations falling behind in preparation for new EU rules to fight cybercrime

In advance of the European Anti-Financial Crime Summit taking place in Dublin tomorrow at the RDS, the Compliance Institute is calling on Ireland’s financial services organisations to ramp up their efforts in getting up to speed on their obligations under new EU rules and the enforcement of the Digital Operations Resilience Act (DORA).

Published in the Official Journal of the EU on December 27, 2022, DORA is set to be fully applicable from January 2025 onward and establishes a regulatory framework for digital operational resilience in the financial sector. This Directive addresses the digital operational risk of financial entities regulated by the Central Bank of Ireland and is the first of its kind aimed at preventing and mitigating cyber threats.

According to a recent survey from the Compliance Institute, almost one in three (32pc) financial service organisations in Ireland have not yet begun to prepare for new EU rules which will help them prevent and mitigate cyber-attacks – one of the most prevalent types of financial crime in Ireland, despite it being only seven-and-a-half months before the new rules come into force.

Commenting on the findings, Michael Kavanagh, CEO of the Compliance Institute said:

“This Summit is an important date in the financial services sector calendar for 2024. The forum fosters and prompts discussion and debate on some of the biggest challenges facing Ireland’s financial organisations.

Ireland is now Europe’s largest data hosting cluster, putting the need for elevated cybercrime and data protection systems into sharp focus. Regulators need to ask themselves how they can regulate and supervise without stifling innovation. Businesses and organisations need to ask how they can best prepare and respond, and the general public also needs to know what measures they can take to protect themselves”.

Cybercrime

In a separate survey conducted by the Compliance Institute of 230 compliance professionals in financial services organisations nationwide at the end of 2023, hacking, phishing, online scams, and other variations of cybercrime were found to be the most prevalent financial crimes in Ireland (See Appendix).

Mr. Kavanagh went on to say,

“Cybercrime is developing and advancing at a pace so fast that organisations and legislators cannot keep up. These attacks can have catastrophic consequences not just for those whom they are perpetrated against, but for the wider public. We only have to look at the devastation that was caused to patients following the 2021 hacking of the HSE to understand the severity of the crimes.

Regulators in Ireland, and around the world, are constantly updating and issuing new guidance to firms in response to emerging cyber security issues, such as fake documentation and the reliability of information sources”.

DORA

Mr. Kavanagh explained,

“The main objective of DORA is to prevent and mitigate cyber threats and ensure that financial entities can withstand, respond to, and recover from all types of ICT-related disruptions and threats. So, there are clearly huge benefits and protections in store for both financial institutions and consumers alike as a result of these new rules coming on board – provided the rules are complied with”.

Other headline findings from the Compliance Institute survey reveal that:

  • More than half (54pc) of compliance professionals in the financial services sector have limited awareness of the new rules
  • About one in eight (14pc) have no awareness of the new rules
  • Less than half (46pc) are familiar with the new rules.

Mr Kavanagh added:

“Figures published by the Banking & Payments Federation Ireland (BPFI) earlier this year show there was a 26pc jump in fraudulent scams in the first six months of 2023. The particular scams involved here were authorised push payment (APP) fraud, involving online and mobile banking transfers, with victims conned out of a total of €8.6 million in the first half of 2023.

While the internet and tech are woven into the very fabric of our lives and have brought untold benefits to how we live our lives, they have also brought many dangers. And it’s incumbent on all financial institutions to educate themselves on – and take – the steps necessary to protect themselves and their consumers as much as possible from the dangers of cybercrime. The rules laid out under DORA have been designed with this objective in mind. We would hope that the next few months will see a bridge in the knowledge gap that currently exists around DORA and what it means for Irish organisations. It is important that all businesses and financial services organisations play their part and follow the lead of regulators so that they – and the wider economy – are in a position to withstand the growing incidence and severity of cybercrime.”

 

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