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
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!
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.
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?
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
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.
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.
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 !