Falkland Islands Business Community Plays Pivotal Role in Banking Services Review
A comprehensive review of banking services in the Falkland Islands has been completed, highlighting the crucial role played by local businesses and key stakeholders in facilitating the development of profiles showcasing the differing needs of various types of enterprises.
Methodology
The peer group of comparable jurisdictions was assembled using a filtering process to ensure that the final cohort had a broadly similar range of characteristics. The benchmarking exercise was conducted through a comparative study approach, with desktop research validated where possible by sources on the ground in each peer country.
Stakeholder Engagement
A team from the project visited the Falkland Islands in early January, holding interviews with a range of businesses across various sectors based in both Camp and Stanley. Some of the key local businesses that were engaged include:
- Coast Ridge Farm
- Wild Falklands
- 60 South
- Beauchene Fishing
- Others
The insights provided by these local businesses have undoubtedly added significant depth to the research.
Key Findings
The review found that the extent of integration between small island territories and their “metropolis” country heavily influences the plurality of banking providers and breadth of services available. Specifically:
- Integration: Integration between small island territories and their “metropolis” country heavily influences the plurality of banking providers and breadth of services available.
- Advantages of non-sovereign territories: Smaller, non-sovereign territories tend to have an advantage in leveraging greater resources and political influence.
- Countries with greater constitutional integration: Countries with greater constitutional integration (e.g., Easter Island, St Pierre & Miquelon) tend to have a greater number of banking providers present and a broader range of products available.
- Challenges faced by banks operating in smaller markets: The review highlights the challenges faced by banks operating in smaller markets, where scale and lack of competition constrain the breadth of products and services available. Stakeholders are advised to focus on securing and sustaining access to a core range of essential services, rather than attempting to offer a full range of products.
- Investment budgets and product commoditization: Investment budgets have been squeezed, leading to greater levels of product commoditization with less scope for customization in smaller markets.
Conclusion
The article concludes that the Falkland Islands context demands an acknowledgment that not all banking products can be offered sustainably or cost-effectively, particularly those with limited utility for small portions of the local population.