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Issues which are hampering banks and payment platforms from operating in the island remain in the crosshairs of Guernsey’s biggest business lobby.
Guernsey’s Chamber of Commerce said it has met with the Association of Guernsey Banks, the GFSC, politicians and other stakeholders sharing the local business experience of banking as improvements look to be made.
Chamber surveyed its members on banking challenges facing them earlier this year, with nearly all respondents reporting barriers when using banks.
Just 4.9% rated local banking services as “high quality” with over two thirds ranking services as substandard. A combined 81.4% were at least “dissatisfied”, which Chamber said revealed “systemic” and “widespread” issues.
While being concerning, it said there is a “big opportunity” for change.
It was announced in September that Economic Development had engaged Deloitte to review the local banking sector, with findings scheduled to be published at the end of the year. Chamber has also shared its survey results with the firm.
In the meantime, it’s producing a “cheat sheet” to help existing and budding businesses navigate Guernsey banking.
“One of the key blockers is that our system does not allow them to automate their processes and they need to manually process data. But we can make it easier for them, with a few simple changes, enabling them to do business more efficiently and making us a more attractive market,” Chamber said.
It wants to see automation achieved through easier information sharing and API integration through the Guernsey Registry, and an online electoral roll so identities can be quickly verified for credit checks, as they are in the UK.
Chamber accept that these system changes will take longer to implement but hope that some quicker wins, such as improved customer service and open banking, can be achieved in the interim.
“Open banking offers many advantages – from efficient money management for businesses to seamless and integrated financial management solutions. Its adoption in the UK and adherence to GDPR standards shows that its implementation is achievable, dismissing data protection concerns some banks cite,” it said.
Pictured: Chamber launched a campaign on banking issues this summer.
At a Scrutiny hearing in September, Economic Development President Deputy Neil Inder said the issue with retail banks was being felt across the Crown Dependencies and promised action to ensure the “best possible service”.
While Guernsey is only the same size as Maidenhead a world-beating list of options shouldn’t be expected but improvement can be made, he added.
All banks were willing to cooperate with more local credit cards on the way and extension given for switching banks due to pooled account issues, Deputy Inder said.
Deputy Sasha Kazantseva-Miller, also a Committee member, said she was personally keen on open banking to alleviate some of the issues. More competition would provoke a market response and get established banks to “become more innovative”, she added.
Economic Development has assured the States it’s committed to easing banking issues, working in lockstep with the other Crown Dependencies.
IT issues have been identified as issues, with planned upgrades at the Guernsey Registry set to complete by the end of the year which may include an API for data checking, while further measures such as automated due diligence could be implemented next year.
Home Affairs also hope to implement an online electoral roll in 2025 – having been under States direction to do so for a decade – to streamline the credit reference process.
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