Falkland Islands Business Community Plays Key Role in Banking Services Review
A comprehensive review of banking services in the Falkland Islands has been completed, with input from the business community across the islands, including those based in Camp. The benchmarking exercise aimed to identify the differing needs of various types of businesses and facilitate the development of a series of profiles.
Methodology
To achieve this, a peer group of comparable jurisdictions was assembled through a filtering process to ensure that the final group had a broad range of characteristics. The benchmarking exercise was completed using a comparative study approach, with desktop research supplemented by interviews with businesses across a breadth of sectors based in both Camp and Stanley.
Stakeholder Engagement
The project team would like to express their gratitude to the following businesses and organizations for generously sharing their time:
- Coast Ridge Farm
- Wild Falklands
- 60 South
- Beauchene Fishing
- Falklands Legal
- Government of South Georgia & South Sandwich Islands
- SG Accounts
- Waverley Law
- Seafish
- Falkland Islands Company
- Fortuna
- Stanley Services
- Shorty’s Diner
- Others
In addition to business representatives, the project team met with key stakeholders, including:
- Falkland Islands Government
- Falkland Islands Development Corporation
- Standard Chartered Bank
Key Findings
The review highlights the extent to which small island territories are integrated with their “metropolis” country, influencing the plurality of banking providers and breadth of services available. Smaller, non-sovereign territories tend to have an advantage due to greater resources and political influence, but sovereign countries with more limited autonomy may face challenges in attracting and retaining banking providers.
The review also notes that:
- The size and lack of scale of the market constrains the breadth of products and services available.
- Stakeholders should focus on securing and sustaining access to a core range of essential services.
- Banks need to operate in scaled markets to generate acceptable returns on equity, which can be challenging in today’s environment of prolonged ultra-low interest rates and stiff competition from fintech firms.
Implications for the Falkland Islands Business Community
The report’s findings have significant implications for the Falkland Islands business community, highlighting the need to acknowledge that:
- Not all banking products can be offered sustainably or cost-effectively.
- Those with limited utility for small portions of the local market may not be viable.
These findings emphasize the importance of prioritizing access to essential services and collaborating with stakeholders to address the unique challenges faced by businesses in the Falkland Islands.