Regional drivers of the future offshore market in the British Isles 2006

CHAPTER 1 INTRODUCTION 9
What is this report about? 9
Who is the target reader? 9
How to use this report 9
CHAPTER 2 MARKET CONTEXT 10
Introduction 10
Europe is the major source of business for offshore banks in the British Isles at present 10
Europe's proximity to the offshore centers in the British Isles has made these jurisdictions the natural recipient of European offshore business 12
Data tables 14
CHAPTER 3 THE FUTURE GEOGRAPHY OF OFFSHORE BUSINESS IN THE BRITISH ISLES 15
Introduction 15
A proportion of offshore financial services providers will continue to target Western Europe 15
Many offshore financial service providers in the British Isles will shift their focus further afield over the next five years, primarily to the Middle East 16
Data tables 18
CHAPTER 4 FACTORS DRIVING CHANGES IN REGIONAL SOURCES OF BUSINESS 19
Introduction 19
The changing regulatory landscape of offshore centers around the world has shifted the target client bases for many financial service providers 19
Regulation in the UK onshore market is a key driver of continuing offshore business growth from UK based clients 20
Communications technology has made it easier for offshore firms to attract business internationally 20
The need for financial service in emerging markets offer offshore firms the opportunity to expand their horizons 20
Instability and immaturity in emerging markets makes stable offshore centers an attractive option 21
The growth of expatriate populations in emerging markets places a high value on recognizable brands 22
CHAPTER 5 STRATEGIC RESPONSES TO CHANGING GEOGRAPHICAL SOURCES OF BUSINESS 23
Introduction 23
A range of strategic developments are required if offshore banks are to capitalize on the changing sources of business 23
Develop a profile and an understanding of local needs in emerging markets 23
Local needs must be catered for with a specially developed range of products and services 24
Recruit specialist staff to cater for the specific needs of offshore banking clients in emerging markets 24
Identification of markets that could particularly benefit from international financial services is key 24
In some cases, it will be most profitable to focus on traditional geographies that will continue to be important 25
CHAPTER 6 APPENDIX 26
Further reading 26
Datamonitor Savings & Investments SPP Reports 26
Interactive Databases 26
Reports 26
Briefs 26
Life and Pensions SPP 26
Interactive Databases 26
Reports and Briefs 27
Financial Advice Market SPP 27
Related Global Wealth Service SPP Reports 27
Interactive Databases 27
Market Reports 27
Strategic Insight Reports 28
Wealth Management Competitor Tracker 29
Datamonitor Asia Pacific Wealth Management SPP 29
SPP writing team 31
List of Tables
Table 1: Which country/countries does most of your business come from at present? 14
Table 2: The geographical source of deposits for the offshore centers in the British Isles in 2006 14
Table 3: Which regions do you think you'll see increased business come from over the next five years? 18
List of Figures
Figure 1: Currently offshore financial service providers in the British Isles rely on Europe and the UK for much of their business 11
Figure 2: The proportional source of deposits for each of the British Isles jurisdictions in 2006 shows that Europe currently dominates the deposits business in these offshore centers 12
Figure 3: Western Europe will remain the primary driver of business for offshore centers in the British Isles over the next five years 16