Finance leader laments lack of investment in sector
(CNS): Around 58% of people who took part in a local survey in 2023 said that they had a negative or neutral view of the financial services sector. Yet the industry employs thousands of Caymanians in well-paying jobs and contributes half of all government revenue. Cayman Finance CEO Steve McIntosh recently said that even though the sector is central to fueling the country’s large GDP and growing economy, neither the government nor the sector itself is investing enough in supporting the industry.
Speaking at the Chamber of Commerce Economic Forum on Friday, McIntosh said the sector needed forward-thinking reforms and investment to ensure its continued success and to meet the increasing demands of a growing global client base, with strategic investments in technology, talent and infrastructure.
He noted the disparity in government investment in its two main sectors. The CIG budget to promote tourism is 40 times larger than the budget to promote Cayman’s financial services, even though tourism contributes far less to the economy and the public purse.
“Work permit fees in financial services are five times higher than in tourism, and workers in financial services earn more and spend more in the economy,” he said. “Yet, a combination of work permit fee increases, recruitment restrictions and technological innovation, making it easier to work remotely off island, are holding financial services recruitment back.”
The Cayman Finance CEO said the financial industry offers significant opportunities for Caymanians and that promoting local talent remains the top priority. Streamlining work permit processes and supporting international hiring would not only allow firms to grow and create new opportunities locally but also secure the sector’s growth and its critical contribution to Cayman’s economy.
The trend towards job offshoring caused the financial services industry headcount to grow by less than 10% to 6,200 jobs over the past 15 years, during which time the population grew by 60% and employment in tourism expanded by 50%.
“The huge opportunity we have is to do a much better job of workforce planning, to do everything we possibly can to support Caymanians who want to work in the sector so that every Caymanian who is willing and able to work in the industry has the opportunity to do so. That is and will remain priority number one,” McIntosh told the audience gathered at the Kimpton hotel.
“But we also have to be realistic about the inherent, mathematical limitations of those efforts and allow financial services companies to hire the people they need from overseas when Caymanians are not available, just as we do for our hotels, restaurants and every other sector of our economy.”
Given the industry’s contribution to Cayman’s economy, supporting half of government revenue and enabling the islands to operate without direct taxation, McIntosh urged a greater focus on promoting the industry globally. Increased funding would help capitalise on new opportunities in areas like reinsurance and fintech, he said.
“Cayman Finance has made significant strides in raising the profile of our financial services, but with increased support, we can amplify our efforts and further solidify our position as a world-class financial centre,” he said.
“The challenge is not having fear to speak the truth. We must avoid the trap of failing to support our own financial industry,” he said as he called for increased investment in technology and a clear focus on innovation to maintain and grow Cayman’s competitive edge.
“Without these investments, we cannot sustain, let alone grow, our success,” McIntosh warned.
- Fascinated
- Happy
- Sad
- Angry
- Bored
- Afraid
Category: Business, Financial Services
I mean, I can dislike military spending in the USA, but still acknowledge it provides thousands upon thousands of jobs.
The Government of the Cayman Islands is doing the people of this country a grave disservice. Most Caymanians, particularly those educated at government run public schools, have no idea how Cayman fits into the global financial industry. Cayman’s financial industry is THE pillar of our economy, so why isn’t finance the major focus and a mandatory part of public education here? Why are we not insisting upon mandatory finance education for school aged Caymanians? We have this booming economy fueled by the local financial industry. People come to Cayman from every corner of the world, armed with the education necessary to obtain employment in finance. Why aren’t we preparing more of our own people for those jobs? We’re leaving it up young Caymanians to figure it out on their own, rather than exposing them to the financial industry at an early age and arming them with sufficient information to make the right education and career decisions. It’s absolutely ridiculous that we aren’t preparing young Caymanians for careers in finance when finance is the driving force of our economy. It is pure negligence on the part of our so-called leaders.
We’ve all heard our own Caymanians say things like “well not everybody can work in a bank”. These ignorant statements are made without having the slightest clue the types of jobs available in Cayman’s financial industry. It’s that defeatist cop-out mentality that we have to eradicate from the minds of Caymanians. We’re taking ourselves out of the game before we even figure out how the game is played.