Ask Onix
Finance hubs at a crossroads
Guernsey and Jersey's financial industries are confronting existential questions as global shifts and digital disruption reshape offshore finance, experts warn. A new report paints a stark picture for Guernsey, while Jersey's government rolls out a strategy to regain lost momentum.
Guernsey's 'burning platform'
A think tank report, compiled with input from 45 industry leaders, describes Guernsey as standing on a "burning platform," urging immediate action to avoid decline. Co-authors Dan Wood and Alex Bezuidenhout of INSO warn the island risks becoming a "wealthy retirement place" unless it adopts a "proactive stance" toward innovation.
Wood acknowledged Guernsey's history of reinvention but stressed the current moment is an "inflection point." The report highlights AI adoption, geopolitical tensions, and an outdated financial system as critical challenges. It also calls for reforms to housing and residency rules to attract talent.
"We should use the worry as the fire under us to get started and actually start doing things."
Katie Inder, Innovate Guernsey board member
Digital finance as lifeline
The Guernsey Financial Services Commission (GFSC) says it is working to position the island as a "trusted, agile, and forward-thinking jurisdiction" for digital finance. Paul Gorman, CEO of Bank Aston, noted that embracing fintech-such as digital asset trading-could attract new business without disrupting daily life for residents.
Inder echoed the need for transformation, urging Guernsey to "evolve, upskill, and become an exciting place to live and work."
Jersey's battle to stay relevant
Jersey's government has unveiled Time to Win, an action plan to revitalize its finance sector, which Chief Minister Lyndon Farnham calls "a cornerstone of our island's prosperity." The strategy follows warnings from an independent panel led by Sir Howard Davies, former NatWest chair, who said Jersey is now "slugging it out" with emerging competitors.
Davies pointed to Jersey's slide in international rankings, attributing it to slow adaptation to digital finance and AI. While he acknowledged Jersey remains in the "top division" of offshore centers, he described its approach to foreign firms as "confused and confusing."
Defending the status quo
Jersey Finance CEO Joe Moynihan dismissed the rankings' significance, arguing they lack practical impact. "I have never had anybody say they're not doing business with us because we dropped in the rankings," he said. However, he conceded the island faces fierce competition and must accelerate digital adoption.
Lee Birkett, CEO of Moneybrain, was blunter: "A paper dollar no longer washes, and certainly not a Jersey pound." He criticized the island's "choice" to lag in fintech, warning that wealth management now hinges on mobile-first solutions. "It's laughable if you don't believe a fintech app is important for your economy," he added.
Regulators respond
Jersey's financial regulator, the JFSC, said it views digital assets as a "key growth opportunity" but stressed that "strong regulation" remains essential to access global markets. The Time to Win report similarly acknowledges the need for "digital-first processes" to meet client expectations.
Both islands' governments now face pressure to act swiftly, with industry voices demanding urgent reforms to secure their financial futures.
