Offshore Financial Services In The British Isles 2006

Published by: Datamonitor

Published: Oct. 27, 2006 - 73 Pages

Table of Contents

CHAPTER 1 INTRODUCTION

What is this report about?

Who is the target reader?

How to use this report

CHAPTER 2 MARKET CONTEXT

Introduction

Key findings

The offshore deposits, mutual funds and insurance markets have remained steady

Jersey dominates the British Isles offshore deposits market in 2005

Retail assets continue to exceed institutional assets in 2005

The Isle of Man insurance market is dominated by life insurance

Data tables

CHAPTER 3 COMPETITIVE LANDSCAPE

Introduction

Key findings

A large proportion of the deposits in Guernsey in 2005 came from outside Europe

Deposits in Jersey originated from a broad range of sources in 2005

The Isle of Man was relatively reliant on the UK as a source of deposits in 2005

There are 13 main competitors in British Isles offshore financial services

Anglo Irish is developing into a formidable force in the offshore deposits market in the British Isles

Bank of Scotland's success is built on the introduction of innovative services, while HSBC's use of online technology stands out

Size and location are seen as major factors in a provider's success

Pricing, rates, and product range are the most common features of successful offerings

Data Tables

CHAPTER 4 OPPORTUNITIES AND THREATS FOR OFFSHORE BANKS IN THE BRITISH ISLES

Introduction

Key findings

Offshore banks' expansion plans may be dented by a rising cost base

A strong product range driven by successful client acquisition will do the most to drive revenue growth in the next two years

Increasing use of intermediaries will be a key driver of revenue growth

Cost of compliance is the biggest threat to cost base control at present

Fears over IT and CRM costs suggest that these are areas for development in offshore banks

Increasing competition and a shortage of quality staff threaten offshore banks in the British Isles

Increasing competition is seen as a serious threat to business growth in the offshore British Isles

Competition is only slightly more significant than the EUSTD as an obstacle to growth

Tax amnesties and their implications are not seen as problematic areas

Data tables

CHAPTER 5 CLIENT FOCUS

Introduction

Key findings

Traditional sources remain the main channels for client acquisition

A personal or professional relationship outside the bank is important in the initial acquisition of clients

Qualitative factors are most important in influencing a new client's choice of offshore bank

Brand strength and customer service is key to attracting clients initially

Both offshore and expatriate clients of offshore banks in the British Isles prioritize similar aspects of the bank's performance

A significant threat to client acquisition is posed by competing offshore players

Existing clients are more likely to judge their bank's performance on a qualitative basis

There is a fine line between profit and popularity

Clients are focused on optimizing their current position

Protecting their current asset base is the main focus for clients today

Data tables

CHAPTER 6 THE FUTURE DECODED

Introduction

Key findings

Growth will be driven by strong product ranges and effective client acquisition in the future

A number of strategic initiatives will be implemented in the coming years

Competition will threaten revenues & client acqusition

However, the very fact that the majority of offshore bankers were only concerned about an economic slowdown, or external factors such as political developments, suggests that the industry is still continuing to develop and grow, and the potential threats are more of an early warning than a current concern. The offshore banking industry looks to remain healthy and competitive both now and in the near future. Data tables

Data tables

CHAPTER 7 APPENDIX

Research methodology

Offshore Fund Managers Survey 2006

Further Reading

Saving, Investments and Protection Portfolio

Global Wealth Management SPP

Analyst writing team

List of Tables

Table 1: Total offshore deposits held in the British isles, 2005

Table 2: Total offshore deposits held in the British Isles, 2005

Table 3: Total mutual funds held in the British Isles, 2005

Table 4: Total mutual funds held by Guernsey/Isle of Man, 2004-05

Table 5: Isle of Man insurance market, 2005

Table 6: Source of offshore deposits in the British Isles, 2005

Table 7: Who are the biggest competitors in offshore deposits in your jurisdiction in 2005?

Table 8: Who are the biggest competitors in offshore deposits in your jurisdiction in 2004?

Table 9: Which competitor has the most innovative product offering in deposits in your jurisdiction?

Table 10: What makes this/these deposit offerings so innovative?

Table 11: What will be the biggest threat to offshore revenues in the next two years?

Table 12: What will most drive revenue growth in the next two years?

Table 13: What strategic initiatives are you considering or implementing with regard to your offshore business in the next two years?

Table 14: What are the most pressing concerns for your offshore business at present?

Table 15: What are your main areas of concern in controlling the cost base of your offshore business?

Table 16: What will make it hardest for banks in your jurisdiction to gain more offshore clients in the next two years?

Table 17: In your experience, what are the best ways to gain new offshore clients?

Table 18: In your experience, what are main reasons your clients choose to bank with you?

Table 19: What do your expatriate customers look for when choosing their financial services provider?

Table 20: What do your offshore (non-expatriate) customers look for when choosing their financial services provider?

Table 21: In your experience, what are the most likely reasons for clients to switch offshore banks?

Table 22: What will make it hardest for banks in your jurisdiction to gain more offshore clients in the next two years?

Table 23: What are your clients most interested in today?

Table 24: What will most drive revenue growth in the next two years?

Table 25: What will be the biggest threat to offshore revenues in the next two years?

Table 26: What strategic initiatives are you considering or implementing with regard to your offshore business in the next two years?

List of Figures

Figure 1: Jersey continues to dominate offshore deposits in the British Isles in 2005

Figure 2: Retail deposits dominate the offshore market in 2005

Figure 3: Jersey has experienced the strongest growth in the last 4 years

Figure 4: Guernsey is catching up to Jersey in the mutual fund market

Figure 5: Life products dominate the Isle of Man insurance market in 2005

Figure 6: Offshore deposits held in the British Isles originate from a wide variety of sources

Figure 7: Alliance & Leicester has grown to be the biggest competitor in the British Isles offshore deposits market

Figure 8: The competitive landscape has changed significantly since 2004

Figure 9: RBS leads the way for innovative offshore deposit offerings in the British Isles

Figure 10: Technology is the key to product innovation in the 2005 British Isles offshore deposits market

Figure 11: Strengthening the product range will be the key means of increasing revenue in offshore banking over the next two years

Figure 12: Compliance is the biggest threat to the management of cost bases

Figure 13: Attracting quality employees is a major concern for offshore banks in 2006

Figure 14: Macroeconomic issues are the biggest threat to offshore revenues in the next two years

Figure 15: Competition may present a significant impediment to further business growth in the offshore market

Figure 16: Referrals from existing clients are the best way for offshore bankers in the British Isles to acquire new customers

Figure 2: Service and reputation are most important to clients when choosing an offshore bank

Figure 3: Customer service is the most important factor for all segments of the offshore banking client base

Figure 19: Priorities are the same across all client segments when choosing financial services

Figure 20: High fees will be the most likely incentive for clients to switch offshore banks

Figure 21: Offshore competition is likely to be the highest barrier to client acquisition over the next 2 years

Figure 22: High fees are the most likely reason for clients to switch banks

Figure 23: Protecting their asset base is the current priority for offshore clients in 2006

Figure 24: A strong product range is key to future growth

Figure 25: Marketing and Distribution will be primary strategies between 2006-2008

Figure 26: An economic slowdown will have a serious effect on offshore banking in the British Isles

Abstract

• Sizes, segments and forecasts the offshore deposits and mutual funds markets in Jersey, Guernsey and Isle of Man.
• Provides key competitor insight on customer preferences, issues, trends and competitive dynamics.
• Combines industry opinion with Datamonitor's proprietary databases to analyze and forecast the offshore financial services markets up to 2008

• Obtain vital market statistics and trends to clarify and explore the provision of offshore services in the British Isles
• Quantify the potential of the sector using Datamonitor's offshore deposits and funds market sizing and segmentation
• Assess the future of the market with forecasts up to 2008

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