As the financial services sector continues to be transformed by a relentless march of digital transformation, the Channel Islands’ financial sector looks set to continue to thrive – despite a number of challenges on the horizon.
That’s the message delivered in the latest edition of Businesslife magazine, a themed issue exploring the future of the financial services sector on the islands.
Jon Watkins, Editor-in-Chief of Businesslife, said: “We know that FS continues to evolve and that technology and data are driving huge change – with many new entrants flooding the market. But we also know there are challenges in the sector that could potentially threaten the Channel Islands’ position as an international finance jurisdiction of choice.
“We wanted to explore those issues in detail – and the good news is that, despite some significant challenges on the horizon, the region’s FS sector continues to appeal.”
Evolution or revolution?
A number of the pieces in this FS edition of Businesslife demonstrate just how rapidly the sector is evolving.
Our interview with the CEO of Enhance Group, Tom Wiseman, for example, gives a first-hand account from a Channel Islands-based fintech of how technology is automating and informing safe and secure investing – and with plenty of room for growth remaining.
Our article on the digitalisation of compliance, meanwhile, looks at the positive role technology is playing in keeping the cyber attackers at bay.
And our feature on central bank digital currencies shows how various nations are progressing on their journeys to implementing a central digital coin. These are all progressive moves – and are all moving at considerable pace.
Rising to the challenge
However, other articles in the issue highlight the challenges the sector faces, too.
The sector in the islands is responding to a potential skills challenge – as the rising cost of living threatens the ability to attract staff from other jurisdictions.
Meanwhile, continued talk of tax harmonisation poses a potential risk to jurisdictions that have traditionally built their appeal on suites of tax-neutral products.
However, as our articles also explain, the positive news with regards tax harmonisation is that, for the super-wealthy, certainty and reputation trump low taxes.
Meanwhile, firms and the islands’ policymakers are responding to the skills challenge with a number of initiatives that mean the islands are likely to continue to thrive as a financial centre of choice.
Elsewhere in this issue…
We also look at:
• The rise of decentralised autonomous organisations as investment vehicles
• The growing popularity of hybrid alternative asset funds
• How firms risk being found guilty of ‘techwashing’ if they overpromise on their digital capabilities
Click here to view our Future of Financial Services edition online.
The physical version of the magazine will be available from its usual distribution points shortly.