A new economic report finds that a focused package of improvements to the financial services sector could unlock around CI$425 million in additional output over the next decade. The proposed reforms would lift the sector’s contribution to the economy from CI$2.5 billion today to CI$3.6 billion by 2035, putting the industry on a stronger, more sustainable long-term growth path.
The independent research by Capital Economics, commissioned by Cayman Finance, confirms the financial services industry’s central role in the national economy and indicates how a focused reform package could contribute to rising living standards among Caymanians by increasing economic output and government revenue.
The report forecasts that innovation in regulation and government services, increased investment in promotion, and better access to talent could unlock 40% growth in the financial services industry over ten years.
Such growth would generate major fiscal and employment benefits. The upside scenario modelled in the report shows government revenues rising by an extra CI$60 million in 2035 – roughly equivalent to the cost of building a new hospital or high school.
Employment in the industry would also expand by around 2,000 jobs over 10 years, bringing the total workforce close to 9,000 people by 2035. Importantly, financial services is already one of the largest employers of Caymanians, with 54% of industry jobs held by Caymanians – a higher share than any major sector outside of government.
Alexandra Dreisin, economist at Capital Economics, said: “Our modelling shows that a targeted package of practical reforms could lift financial services growth from about 1.8% to roughly 3.0% per year over the next decade. That difference compounds to roughly CI$425 million more output by 2035, alongside additional jobs for Caymanians and around CI$60 million in extra government revenue. Importantly, these gains come from doing existing things better, streamlining regulation, digitising key public services, investing in promotion, and improving access to critical skills, while maintaining Cayman’s strong international standards.”
The report forecasts significant benefits to the Cayman economy based on improvements in four areas.
First, it urges more regulatory innovation. Cayman’s high international standards should be maintained while applying a proportionate, risk-based approach with clearer guidance, and pragmatic supervision, so that firms can comply more easily and regulators can focus resources where they matter most.
Second, the report calls for enhanced digital infrastructure for government services. It proposes accelerating digitisation and automation across registries and regulatory systems. Faster, more predictable service would improve the client experience, free up capacity in government, and reduce costs and uncertainty for businesses.
Third, the research recommends increasing investment in promotion. Scaling up the promotion of Cayman’s financial services sector to levels comparable with rival offshore finance centres would enable firms to sustain business development, deepen relationships with global investors and intermediaries, and ensure Cayman’s strengths remain front-of-mind in competitive mandates.
Fourth, the report calls for increased development of Caymanian talent, alongside faster and more efficient immigration processing for highly specialised professionals not available locally. The research suggests improved public-private collaboration on scholarship programmes, apprenticeships and career pathways for Caymanians. It also recommends streamlining and digitising the work permit application process and offering greater residency certainty for critical roles. This would allow firms to meet immediate skills requirements and enable more Caymanians to progress into high-value roles across funds, insurance, banking and professional services.
“Cayman’s financial services industry is the backbone of our economy and our public finances. These findings make a compelling case that investment in the right areas can unlock huge opportunities for the country,” said Cayman Finance CEO Steve McIntosh. “Our vision is a financial services industry that is thriving and supporting the community to its full potential. We look forward to working with Premier Ebanks and his government to achieve it.”
Cayman Finance Chairman Conor O’Dea, added: “Cayman’s financial services industry has always thrived when government and industry work together. This report shows that with the right reforms – modern regulation, investment in technology, efficient government services and access to skilled talent – we can secure another decade of growth. By potentially adding up to CI$60 million to government revenues by 2035, these improvements represent a win for everyone. This is a moment to double down on our partnership and ensure Cayman remains a world leader in financial services.”
