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.
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Category: Business, Financial Services
If any local kid can’t read by 12yo they’re fodder, and grist for the invasive foreigner finger pointers.
Blame your government which actively DEVALUES education from Birth!
And, a Govt who prefers permits and revenue over their own locals..ask any foreigner who obtains Suatus how difficult it immediately becomes to get a job or promotion as a Caymanian!
Caymanian if we can only shed this Canadian hoard that have now descended on this little place we would at least stand a little chance and our children‘s future might see a glimmer of hope. but alas those who are in charge of this place wouldn’t even acknowledge the threat or are oblivious to it and how it’s is hemorrhaging our economy and financial status.
Ex-pats *ARE* the economy!
See:
2005: “Ex-pats, it is muttered (and written in very concerned and usually badly spelled letters to the newspapers), come over to the island, take jobs away from honest hard-working Caymanians (I’m told there is such a thing…) and end up taking Caymanian dollars off the island – weakening the economy. Weakening the economy? We are the economy. Where the bloody hell do they think all their money comes from anyway? Fish? Aside from which if there was a Caymanian capable of doing my job, there’s not a chance in hell I’d be here. Personally, I suspect that the real problem is that they don’t trust us because a lot of us don’t go to church. I also think that the Caymanians resent us because they have this nagging suspicion that the ex-pat community is laughing at them behind their collective backs, sniggering and poking fun amongst ourselves. They are, of course, absolutely correct in that last suspicion.”
Plus ça change, it’s been like this for decades. The above comments come from a physician back almost two decades ago:
Cayman Islands – What the brochures don’t say”:
Part 1 – https://h2g2.com/entry/A4503665 and
Part 2 – https://h2g2.com/entry/A4503683
Those websites are dead. There appear to be archived versions here, though:
Cayman Islands – What the brochures don’t say. Part 1
Created Jul 21, 2005
https://archive.ph/xRscG
Cayman Islands – What the brocures don’t say. Part 2
Created Jul 21, 2005
https://archive.ph/ggGOw
Yeah man you calling us Riff Raff in your eloquent words.
Cayman Sanctions, Don’t worry, Trump is soon going to take over Canada and make them the 51st state. Tariffs will wipe out Canada and their economy.
MAGA
unless Canada puts tarrifs on US Service providers, they are double the $ amount of oil and goods flowing to the states.
Something Trump forgets, get ready for world tariffs on the US, then the US will become completely isolated like North Korea.
Canada needs to tariff the $1 trillion deficit Canada has with the US service providers.
Yeah, and get ready for a huge drop in Canadian tourists too as Trump’s tariffs put the Canadian economy into a full blown recession soon.
Thanks MAGA fans.
“Each one (furriner) Brings Ten”.. the new of Tax free Milk n Honey.
I’ve spent time in a few parking garages up north.
Yes, many bring their bad (expensive) habits with them, and somehow find ways to justify top hires, even excluding qualified local lawyers and other degree holders!!
And the good Ole Boys Club ensures the top permits are approved, and then the MPs have more money to burn.
it’s a vicious cycle that will soon crash.
I have seen the salaries of the top earners and can honestly say that FS in Cayman is doing fine without financial help.
Cayman will inevitably die a slow death for a multitude of reasons so just let everyone be and let the expats take their money and run…mosquitos will run the island again within 20 years…
Comments like this only prove his point!!
Hotel GMs are well paid too. The owners of hotels and restaurants are doing well. Should we defund tourism too?
There are enough jobs for everyone – in fact more than enough. What our Government needs to do is make sure that Caymanians are properly educated and trained to take advantage of these jobs.
I have 4 kids in high school – the industry is barely mentioned to them. The teachers don’t understand it. The UK ciriculm doesn’t include it – so it completely passes everyone by.
We need to do better. this is where the money should be spent.
Our government also needs to properly fund CIMA, the Minsitry and all authorities required to run and regulate the industry properly and adhere to International Standards. THIS should be the Governments role.
BUT CIG providing EVEN MORE money to promote the industry so that the millionaire partners and owners can make even more $$ is a rediculous proposition.
But we should spend $20 million promoting tourism to help Dart and the PE firms that own hotels make even more $$$? I don’t get it.
Our government legal department does not even comprehend what is happening in financial services. Our education system does not understand the needs of our industries. Our civil service has lost touch with what it is to be world class. Our police do not understand the community standards expected by Caymanians.
The whole thing is becoming a shitshow! Preach Steve! Preach!
A small government commanding a large economy wants to ensure highly educated people do not remain and threaten being part of our citizenship because then they would monitor, influence, and change policies designed to destroy the future of Cayman environment, both human and natural.
Absolutely!
The Cayman Islands’ financial services sector is central to our economy, contributing half of government revenue and employing thousands in high-paying jobs. Yet, as Steve McIntosh rightly points out, there is insufficient investment in supporting this vital industry. Nowhere is this neglect more glaring than in the state of our judicial infrastructure, particularly the Financial Services Division (FSD) of the Grand Court.
The FSD handles the disputes and legal matters of global corporations, investment funds, and financial institutions that are the backbone of our economic sustainability. However, the current facilities, housed in a building that fails to project even basic professionalism, are wholly inadequate. The situation is third-world and utterly out of step with Cayman’s aspirations as a leading financial hub. Clients visiting for high-stakes litigation or insolvency proceedings leave with an impression of outdated, unimpressive infrastructure that undermines our world-class reputation.
A purpose-built commercial court in Camana Bay would transform this perception. Situated at the heart of a modern, well-maintained business district, it would offer cutting-edge facilities, ensuring that the FSD reflects the sophistication of its users and the calibre of cases it handles. Beyond aesthetics, a new court would improve efficiency, attract top legal talent, and affirm Cayman’s commitment to remaining a leading global financial centre.
Without investment in infrastructure, we risk being outpaced by jurisdictions offering modernised facilities. Cayman’s financial services deserve better. Let us prioritise constructing a commercial court that signals to the world our seriousness and dedication to this indispensable sector.
Financial Services is 75-80% of CIG General Revenue, far in excess of half, and the thickest economic pillar by multiples, for the last 30+ years.
I agree with most of what you have expressed, except for where your proposed new FSD courthouse should be located. Keep it in George Town – just locate it within the CRICKET SQUARE complex. That is a rapidly expanding modern town, equivalent to what is happening in Camana Bay. Look at all the amenities offered there and with its proximity to the Government Building, there’s no need to go to Camana Bay.
100%, plus C’Bay kinda sucks!
By way of a preamble, I don’t work for Dart, I just think that George Town is a disaster, and a Camana Bay courthouse would do wonders for the credibility and efficiency of the FSD. It’s presently deeply embarrassing when we take clients to court – and that extends to the wider George Town surrounds.
George Town, while central, is currently plagued by congestion and lacks the infrastructure to support any further infrastructure, much less a world-class judicial facility. George Town was historically the heart of Cayman commerce, but it has suffered from significant congestion and infrastructure challenges that cripple its potential. Parking is scarce, traffic flows poorly, and the overall environment does not align with the needs of international professionals visiting for high-value financial matters. Cricket Square, while a worthy office park, is just that: an out-of-town office park. It similarly suffers from limited dining and communal options, and its parking situation remains problematic, particularly during peak business hours, which would only be exacerbated with the addition of a busy courthouse.
In contrast, Camana Bay stands out – without hyperbole – as a beacon of modern urban planning and community design (e.g. unlike George Town, it actually has been planned and designed!). It is not just a business district but a vibrant, integrated community space that combines functionality with aesthetic appeal. Camana Bay offers:
• Abundant parking: Ensuring that all visitors, including those coming for legal proceedings, have easy access without the hassle of having to park offsite and walk extended distance with bundles, etc. while wearing court dress.
• Diverse amenities: With numerous dining options, shopping facilities, and cultural attractions, it provides a welcoming environment, which is crucial for clients and legal professionals who might spend considerable time in the area. It’s only tangentially relevant to this discussion, but where are the George Town equivalents to Camana Bay’s two separate water features where I take my kids? Or the ‘mini desert island’? George Town is ‘Blackpool with sunstroke’: a higgledy-piggledy random assemblage of buildings defined by cruise tourism junk shops and slowly failing legacy retail outlets.
• Strategic location: Situated away from the dysfunction of George Town, and in the middle of Seven Mile Beach corridor, and easily accessible for counsel and clients in hotel accommodation in Seven Mile Beach and West Bay, it offers a serene yet accessible location, enhancing the focus on professionalism and efficiency.
• Architectural and design excellence: A new courthouse in Camana Bay would benefit from being in an area known for its high standards of architecture and urban planning, thereby reinforcing the Cayman Islands’ reputation as a sophisticated financial jurisdiction. Compare George Town to the Commercial Court in London, or – more relevant as a competitor – the Supreme Court of Singapore. George Town feels like the third world.
• Proximity to other businesses: Being in close vicinity to numerous financial and legal firms, Camana Bay would streamline operations, making it easier for lawyers, judges, and litigants to manage their schedules efficiently.
By positioning the FSD in Camana Bay, we would not only address the practical needs of our judicial system but also make a statement about our commitment to excellence in the financial services sector. This would align with our broader aspirations to be recognised as a sustainable financial hub which intends to remain a competitor in the face of serious challenges from both Singapore and Dubai.
In summary, Camana Bay is a modern, carefully planned community designed around walkability, ample amenities, and efficient traffic management—features that set it apart as a prime location for a new FSD courthouse. It offers a balanced mix of restaurants, retail, and green spaces that promote both productivity and client hospitality. Crucially, parking and vehicular flow have been integrated into the master plan, ensuring a smoother experience for visitors and legal practitioners alike.
See https://www.camanabay.com/about/
Government and public buildings shouldn’t lease space from private entities making them even richer and should be in buildings owned by our country.
Fair point. I’m sure that Dart would be amenable to some sort of deal whereby CIG effectively owned the relevant courthouse land on a [very] long-term lease – like 200 years.
The benefit to Dart would be that the law firms would increasingly migrate to Camana Bay (to the extend that they haven’t already done so), so there is a deal to be done.
Real Estate is where the bribes pay, and still no transparency on UBO’s or KYC. It’s still a laundering Wild West…wonder why that is?
While you’re at it, ask why the 2000 landlord and tenant law still hasn’t been enacted, and wonder why and who would be affected.
Cayman’s politicians certainly loved the “Finance Sector” during the money laundering hay day that preceded the signing to various Mutual Legal Assistance Treaties. Back then, some of our still active and practicing politicians, legal minds, and accountants were busy brokering transport, facilitating releases from custody, and other illicit favors. This purportedly included the sale of at least one Kirkconnell Bulk Shipping Freighter by a certain Cayman Brac MP to a renowned local marijuana and cocaine smuggler. The 1980s was when a young West Bay politician began giving away the smuggler’s decoy cargo of frozen turkeys. See Leigh Ritch’s “In Too Deep: How an American Teen Became a Pioneer Boss of the International Drug Trade”. Fascinating stuff.
https://www.amazon.com/Too-Deep-American-Pioneer-International-ebook/dp/B08DCPL793
Start with legislating the banks. It’s as of people work for the banks here. Getting locked out of accounts. This is ridiculous
Cayman’s 5 foreign-owned class A banks, their financial and investment products, mortgage, loan, credit card expertise and equipment are all at a standard decades behind the rest of the world, commingling margin and non-margin balance sheet funds, and charging fees that vastly exceed credit interest. It would be safer, and offer a higher rate of return to simply stash the cash under a mattress. Zero ATMs, business-phobic, with a collective mind to prioritize customer disservice. Their online portals/services (if they have) also suck.
You forgot to mention how they rob us blind converting US to CI for a private sector tax of 1.3%.
I’d love to know how much money they make from that every year. I bet it’s obscene and adds no value whatsoever.
well said steve….a super smart individual.
pity he and many others of his ilk cannot run for office.
but hey…we got jon-jon, ju-ju, mac, kenny…..zzzzzzzzzz
welcome to wonderland.
If Chamber feels like making political sense, it might weigh-in, applying this merit-based logic against the cruise port boondoggle. So much capital and energy is wasted on myopic preferred developer deal misfires. If Cayman is “for sale”, then CIG shouldn’t fully exclude any of the other local billionaire bidders and friendlier consortiums that might have expressed interested, had there been an open solicitation RFP/bidding/tendering process. Cayman’s governments need to stop calling DART for answers – clearly we should discern by now, they are not on Cayman’s team.
The ability to work from anywhere, particularly for firms with global footprints, is definitely a growing issue. I had a highly paid individual renting one of my apartments for many years. The person was coming up for PR but was advised they had not made sufficient investment into Cayman. The company is relocating the person to Ireland where he’ll do the same job from there resulting in the loss of his income for the Islands and the permanent end to that job existing in Cayman for perhaps a Caymanian to fill in future. There is no easy solution except some type of way to extend the work permit system to let people stay without giving them PR or Status.
I mean, I can dislike military spending in the USA, but still acknowledge it provides thousands upon thousands of jobs.
And your dislike of both the US military and financial services would each be illogical.
You a fan of bombing brown people into oblivion worldwide to keep the military industrial complex strong, huh?
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.
Problem we have is that we are prisoners of the British educational system curriculum, and the refusal to adapt and innovate our public education system in such a way as to make finance education a cornerstone of our education system.
We need Education Ministers and Premiers who are prepared to be innovative on this issue and think outside of the box regarding Cayman education. Finance and economics should be a mandatory subject for every Caymanian public school student in high school.
Sir Alden and JuJu could never innovate on educational policy matters as they were old think when it came to education in the Cayman Islands. 10:35 is correct, Caymanians are taking themselves out of the game before even figuring out how the game is played.
Let’s get in the game with finance education for our Caymanian youth. We urgently need political leadership on this issue from our Education Minister and Premier.
CSX exams are not the British education system (which I agree is outdated) they’re a Caribbean variant of the old British system back in the 70s. They do no favors to someone looking to get out in the world as (unlike British qualifications) barely anyone recognises them.
Do you think the Brits, Americans and Canadians in the financial services industry had finance or economics as a mandatory subject? Nope. And much of what you learn at the school level is irrelevant to actually doing the job. The issue is not the curriculum – its the appalling standard of performance in the basic skills of English, Maths and Science that are a foundation for tertiary education and on the job training in the finance industry. Look at the results – arguing that Caymanian kids should be taught finance and economics when they cant reach a basic level in the core subjects is not going to help.
Most of the younger Canadians and private school educated Americans
In their 20’s and 30’s today had some exposure to economics / personal finance in high school, especially if they went on to university.
10:21, It is very useful to graduate from high school and know what is a debit and a credit and what debt and interest rates mean.
Most Caymanians, especially young ones, don’t understand debt and its implications.
The British education system seems to produce plenty of kids/adults for the financial services industries in London, New York and Asia. Maybe we could start with getting more than half our 16 year olds passing math and English first.
I worked I private banking for a good portion of my work life and it takes a lot of tact , a zest of diplomacy and a strong sense of discipline to work with high net worth clients or ultra high net worth clients .
First and foremost, they don’t need you or want you unless your services are competitive, your fees modest and your management of the highest caliber .
Client satisfaction and relationship is key , you are not the only financial institution they daily do business with .
Their financial needs often require capacity to deal with multiple financial instruments and settlement mechanisms (SWIFT, IBAN) timely delivery of confirmations of execution of transactions.
You will also be able to access financial information services since your clients may plan to actively manage their trades and transactions through your services and I would advice you keep your commissions and fees as low as your management will accept lest the client moves their business elsewhere!
Privacy is also key to instill confidence into your relationships with the clients.
Moreover, you need strong organizational skills and strong communication skills and if you aren’t available your N+1 can take over the client at a glance to his file , reach back to the client and carry the same work as you handle daily, keeping the relationship smooth and secure.
Capacity to address the client both in English and his native language is always a plus but not entirely necessary.
The work you deliver has to be timely as well , your systems never ever go down and the support and attention has to be top notch as you will be directly competing with illustrious financial professionals and institutions sometimes at the institutional level !
A solid address book is a plus especially if it is constantly updated !
Don’t rely on Linkedin to get in touch, you have to be familiar with the position your counterparty!
You maybe competitors but you share the same client, just different aspects of their business models across multiple platforms , continents and cultures.
Any breach or disruption and you might lose their business and take a hit in terms of reputation either as an an individual or as an organization and word of mouth can spread like wildfire, especially at that level , if you make a mistake, don’t compound it , apologize, take a step back and OWN it ! This might be just what you need to repair confidence!
How come I didn’t stay in the field ? Well I chose to go and stop to take a break and manage my own assets, the paycheck was nice and so were the bonuses by bringing ever more business to either myself or my colleagues as I always kept my limitations in check to provide my best performance and quality of service.
If you can find that with the local talent pool ! Bless you !
@ 22/01/2025 at 2:21 pm -Yes, you are exactly right. We do not prepare young Caymanians to provide that level of service and that is exactly what we need to fix. Prepare young Caymanians to provide operational excellence in the global (NOT just Cayman!) financial industry. We should be putting ourselves in a position to EXPORT Caymanians to provide financial industry excellence on a global scale in the same sense that Caymanians were once known as great seamen. We have the financial resources and a relatively small number of citizens to educate with those resources. We have ALL of the big 4 accounting firms as well as global law firms represented here and they should be helping to educate their own workforce from the LOCAL talent pool. You want your work permits approved? Well you have to help us prepare local citizens so that you don’t need those permits. And no, I’m not talking about giving jobs to unprepared and under educated Caymanians. I’m talking about preparing Caymanians for those jobs. Merit based. Not handouts!
“…you have to help us prepare local citizens so that you don’t need those permits. And no, I’m not talking about giving jobs to unprepared and under educated Caymanians. I’m talking about preparing Caymanians for those jobs.”
We can’t do it. No one can. Only a tiny % of American, Canadian, Aussie, Kiwi or British kids have the aptitude and inclination to succeed in these careers: the overwhelming majority fall by the wayside back in their home countries.
It’s no different here, except that you’re demanding that we somehow extract candidates from a vanishingly tiny talent pool, the majority of whom have an abysmal level of educational achievement.
We’re not miracle workers. If you want to shut down expat recruiting, and force us to rely on locals, please just tell us that, so over the course of the next 5-10 years we can simply relocate to e.g. Dubai or Singapore, and e.g. similarly redomicile the funds we service. Cayman wouldn’t be the first Caribbean island to commit economic suicide, and it’s a risk we’ve all been conscious of for a long time.
Sad but true. It’s simply a numbers game. The financial sector workers of NY, London and Asia are chosen from an annual graduate pool of millions. Cayman has a higher education graduation rate of what a year? Several hundred? How many from Ivy League/Oxbridge/Etc? Single digits?