Catalysing finance industry competitiveness in the Channel Islands: What you need to know and actions to stay ahead

In addition, last month we published our second annual PwC Channel Islands CEO Survey, which provides further insight on how the industry is dealing with geopolitical change and making progress on AI adoption, both of which will be crucial for future success.

Together, these set out an urgent case for change and a compelling direction of travel. In this blog we look at the common themes arising and set out no-regrets next moves that we can all take as business leaders vested in the future economic prosperity of our islands.

The finance industries of Guernsey, Jersey and the UK face a shared inflection point. Without action, erosion of respective market share and influence in the face of shifting client demand and increasing international competitiveness, is framed as a central threat. The responses have much in common, namely: move faster on digital and data, streamline the operating environment, invest in talent, sharpen international positioning and execute with discipline.

The case for coordination between the islands, and with the UK, is made clear. Indeed, TheCityUK explicitly recognises the Crown Dependencies as part of the broader UK financial ecosystem, noting the mutually beneficial relationships, and the key roles the islands play as conduits of international capital and facilitators of UK economic activity. If you’d like to learn more, TheCityUK with Guernsey Finance and Jersey Finance recently published this overview. Going forward, collaborating as part of the British family of financial centres will be ever more important.

The strategies all require a fundamental cultural shift and a need to strengthen their respective jurisdictional brand narratives. Jersey frames this as the recognition that "the privilege has shifted" — it is now Jersey's privilege to host and serve global businesses, not a privilege for clients to operate there. Guernsey calls for sharper brand positioning as a specialist international finance centre (IFC), whereas the UK calls for greater clarity, confidence and pride.

All three acknowledge that public sentiment towards, and understanding of, the sector is mixed, despite the significant contributions to our local economies. These strategies represent an opportunity to reconnect with wider society.

All three jurisdictional strategies are framed around clear imperatives for action — and there is much commonality. With the right positioning, we think there could be potential opportunities for collaboration between the Channel Islands and also with the UK. Some potential examples provided here as food for thought include:

• Digitalisation and tokenisation are urgent, front-line competitiveness levers. All three strategies emphasise leading at the frontier of financial technology – AI adoption, tokenised assets and end‑to‑end digital processes – moving from sandbox pilots to scaled deployment. Could the Channel Islands share expertise, build use cases aligned with each island’s respective strengths and collaborate on enablers such as interoperable standards?
• A simpler, faster, more predictable regulatory regime. Jersey stresses reducing regulatory “gold‑plating” and friction, Guernsey focuses on harmonising legal frameworks and the “ability to do business”; while the UK report calls for proportionality, streamlined approvals and predictable tax. Could a shared Channel Islands regulator-endorsed e-KYC utility, together with common onboarding standards, further reduce friction for clients in the industry?
• Talent, skills and mindset. Each report links competitiveness to a tech‑fluent workforce and to cultural shifts that prioritise both growth and customer experience. Could the Channel Islands invest in joint AI skills initiatives?
• Connectivity and infrastructure. Both islands flag flexible and reliable travel connectivity as critical to competitiveness, as we would no doubt all recognise. The UK focuses on digital infrastructure connectivity and securing trusted cross-border data flows which will be essential for tokenised markets. What more could the Channel Islands do to ensure that cross-border data flows are seamless and trusted, and could the islands’ data trust products also present opportunities?
• Sharper international positioning and promotion. Guernsey prioritises targeted roadshows and its brand as a specialist IFC; Jersey seeks a reset in external promotion; while the UK report pushes for “Team UK” joined-up propositions that leverage collective expertise, with deeper ties to growth markets. Could coordinated roadshows be arranged in priority markets, including harmonised and complementary messages about stability, speed and specialisms?
• Capital mobilisation for priority growth sectors. All three strategies identify growth opportunities in sectors such as private wealth and family office; defence and energy infrastructure; and (relevant in particular to Guernsey), insurance, driven by cyber and climate risks. How can the Channel Islands leverage their collective agility, innovative structures, and trusted relationships to strengthen their role as specialist extensions of the UK financial services ecosystem – seizing high-value opportunities like these?

Our Channel Islands CEO Survey points to insights which take on increased significance given these imperatives for action. For example:

• Business outlook: Nine out of 10 Channel Islands CEOs are confident about the next three years’ revenue growth, but less so about our local island economies.
• Moving into new markets: 62% of Channel Islands CEOs have already begun competing beyond their core sectors. The UK, US, UAE and Luxembourg are the top destinations for planned future overseas investments.
• Geopolitics: Local CEOs are concerned about geopolitical risk and all plan to strengthen enterprise-wide cybersecurity in response.
• Technology and AI: 58% of Channel Islands CEOs are concerned about whether their companies are transforming fast enough to keep up with technology and AI. Only 8% have realised both cost savings and revenue growth so far. Only 15% of local CEOs are confident they have well-established AI foundations, with only 41% having an AI roadmap.
• Skills and talent: Lack of availability of skills is a near-term threat cited by 58% of local CEOs. 33% are concerned if they have the right leadership team, and only 15% agree they can attract high-quality AI talent.
• Long-term activities: Local CEOs are currently spending only 7% of their time on activities with a 5+ year outlook. Focusing too much time on the short-term could mean they miss threats and opportunities.

We have much to be proud of about how local businesses are evolving to capture value, but at the same time, these findings further strengthen the case for doubling down on actions to boost our islands’ long-term competitiveness.

The strategies point to a range of opportunities and suite of actions, many of which are sector or function specific as a springboard for growth. We urge you to review the full documents, consider how they intersect with your business strategy, and if you are not already doing so, engage with the various relevant policymakers, finance bodies, industry leads and trade associations to spearhead innovation and implementation.

More generally, our Channel Islands CEO Survey set out six practical next steps in 2026 for local business leaders that apply across all parts of the industry. These are:

By building on progress to date, focusing where we have credible expertise and the right to play; moving faster on AI, radically reviewing our talent and skills propositions, and taking a collaborative approach as part of a British family of financial centres, Guernsey and Jersey can set the conditions for thriving finance industries and economies for years to come.

But to do so requires action from all of us as business leaders vested in the future economic prosperity of our islands. Please reach out if you would like to discuss any of the issues arising and how we can help.