Cook Islands trust boom opens fintech & regtech market

Record growth in the Cook Islands financial services sector is opening a market for fintech, regtech and cybersecurity providers. A government report shows international trust registrations rose to a record 433.

The figure is up 42% on the past year and almost 90% over two years. Financial and insurance services contributed more than NZ$48 million to the Cook Islands economy in 2024/25, up about 27% from NZ$38 million in 2019/20, and now account for 8.5% of real GDP.

The expansion is linked to rising international demand for Cook Islands asset protection trusts, an area in which the jurisdiction has a long track record. Much of the work is tied to overseas clients, especially in the United States.

The report says about 85% of licensed trustee company revenue comes from US clients, mainly through asset protection structures. That concentration is shaping the systems firms need to manage cross-border structures and meet overseas regulatory expectations.

Industry participants say demand is rising for trust administration systems, compliance tools, identity verification technology, cybersecurity services, international payments infrastructure and digital client servicing.

Tauranga-based Southpac Group, which says it has about USD $4 billion under administration across its international operations, argues New Zealand technology firms are well placed to serve that market. It points to the close relationship between New Zealand and the Cook Islands, as well as similar legal and regulatory traditions.

Technology demand

Mike Arand, Chief Executive Officer of Southpac Group, said the sector's next stage will depend heavily on the systems that support international financial services.

"As the Cook Islands industry expands, it will require more sophisticated systems for trust administration, regulatory compliance, identity verification, cybersecurity, payments and international client servicing. This creates opportunities for fintech and regtech providers internationally that can help financial services firms operate securely and efficiently across multiple jurisdictions," Arand said.

He said the issue is no longer simply the number of new trusts being created, but whether firms have the systems and specialist support needed to serve clients across borders.

"The next phase of growth is not simply about registering more trusts. The industry needs the digital infrastructure, specialist expertise and compliance capability to service clients across multiple jurisdictions securely and efficiently. The Cook Islands is a relatively small market in its own right, but the financial services businesses operating there have an international client base. That means the technology supporting them also needs to meet global standards," he said.

The report also points to broader economic effects. The Cook Islands has long depended on tourism, and growth in financial and insurance services offers a source of income that can be delivered remotely and is less exposed to disruptions in international travel.

Jobs pressure

Employment data show the strain growth is placing on the local labour market. The number of established roles across the wider financial sector rose from 257 in 2020 to 325 in 2025, an increase of 68 positions, or about 26%.

Even so, only 299 of those roles are currently filled, leaving vacancies across legal, accounting, trust administration, compliance and technology functions. That gap suggests firms will need both imported expertise and more digital tools if the sector is to keep expanding.

Arand said continued development will depend on attracting skilled people and investing in systems.

"The jurisdiction has developed a global reputation for its asset protection trust legislation and is now administering billions of dollars in assets for international clients. Financial services contribute more than twice as much to the Cook Islands economy as agriculture, fishing and construction combined. Continued growth will depend on attracting the people, technology and investment required to support a sophisticated international financial services sector," he said.

Matthew Smith, Lawyer and Director of Business Development at Southpac Group, said the rise in registrations reflects a shift in how clients approach risk and wealth planning.

"We are seeing more business owners and professionals consider asset protection as part of their broader risk-management and succession planning rather than waiting until a legal claim emerges. The Cook Islands has a long-established legal framework, but the industry supporting it must continue investing in specialist people, compliance systems and technology as the number and complexity of international structures grow," Smith said.

The Cook Islands is self-governing in free association with New Zealand, uses the New Zealand dollar and its people hold New Zealand citizenship. Despite those ties, its financial services industry is largely international in its customer base and revenue sources.

Smith said US demand remains central to that picture.

"The United States has driven much of the sector's recent growth and will remain its most important market. As demand increases, the Cook Islands will need to ensure its legal, regulatory and technology infrastructure continues to meet the expectations of increasingly sophisticated international clients," he said.