Delivering innovative banking services in a stable jurisdiction, Jersey has been attracting deposits and investments from institutions and private clients across the world for more than 50 years.
Jersey has an evolving and increasingly flexible regulatory approach designed to attract good quality banking business to the island to enhance its existing array of providers.
Bank ownership structures and business propositions are changing and the regulatory regime needs to be suitably adaptable to cater for this, which the Jersey Financial Services Commission (JFSC) fully appreciates in its current licensing approach.
Jersey is therefore aiming to make it increasingly possible, in line with this changing regulatory philosophy, to cater for niche and digital banking providers.
For banks or advisors interested in exploring the opportunities in Jersey they should contact: firstname.lastname@example.org
Jersey’s banking organisations work alongside trust and company administrators, investment managers, stockbrokers, advisers, a range of fund managers and administrators, the ‘Big Four’ and other leading international accountancy firms, together with some of the biggest names in the offshore legal world.
Future of Banking
With the Island’s banks under continuing pressure from low interest rates, we launched the Future of Banking Review in 2016 to analyse the challenges facing the Jersey banking sector. The project involved many stakeholders including banks, professional firms, Digital Jersey, Government and the regulator, participating through interviews and workshops. It analysed the challenges resulting from economic changes, regulatory developments, cost pressures and disruptive technologies. Three were seen as particularly critical:
- The continuing consolidation of operations across IFCs by banking groups – driven by factors such as cost-cutting, increasing regulatory costs and a flight to quality.
- Digitisation and automation of services – creating further pressures on banks’ offshore operations.
- De-leveraging of the global banking system – restricting the long-term profitability and growth of Jersey’s banks by reducing the value and purpose of their traditional deposit-taking business model.
Given these challenges, the review identified three strategic priorities: to ensure that Jersey emerges as a winner from the consolidation of banks; to increase the value realised from its banks’ deposit books through new banking activities; and to maintain employment and competitiveness through digitisation and innovation in banking and the evolution of new business models.
These objectives will be developed into a focused action plan which will require the involvement and close cooperation of many stakeholders across the whole financial services industry. We will be working in partnership with Digital Jersey to explore exciting initiatives that can benefit Jersey’s financial services industry including banking sector.
Read the Future of Banking Report