For the first time in almost 30 years, Guernsey will have a locally licensed bank as Bank Aston has received a banking licence and been authorised to launch a new offshore bank by the Guernsey Financial Services Commission (GFSC).
Though the licence is subject to conditions during Bank Aston’s launch phase, the bank will serve offshore trustees, investment funds and family offices that form the backbone of the Channel Islands financial services industry. It is being set up to offer a better, faster and simpler banking process. Using a new onboarding process, new technology and a deep knowledge of the offshore market, trustees, investment funds and family offices can be serviced much more quickly and competitively than is currently the case.
James Bennett, co-founder, Bank Aston, says: “Banking is becoming a huge problem for offshore institutions. They face increasingly slow approvals, poor customer services and eye-watering fees with decisions being taken remotely by legacy banks whose risk appetite is steadily declining. This has resulted in more and more institutions being forced onshore which increases inefficiency, adds unnecessary risk and takes revenue away from the islands.”
Guernsey resident, Jay Goss, is Bank Aston’s other co-founder and is well aware of the current banking issues facing many offshore institutions.
He explains: “Few people realise the seriousness of the situation. The difficulties with onboarding and running accounts is starting to impact the whole industry. But there is an opportunity as well. We see Bank Aston as a commitment to Guernsey’s future and to ensuring the island remains relevant, resilient and ambitious on the global financial map.”
Bank Aston appointments
To support the launch, Bank Aston has appointed Kevin Brown as chairman, a senior leader with experience at Royal Bank of Scotland, Bank of England and FCA; and Paul Gorman as CEO, who spent 20 years in senior management roles in corporate and investment banking, including at Barclays and Santander.
Gorman believes that Bank Aston can help re-energise the whole offshore market. He says: “The offshore market is huge. In the Channel Islands alone, there is over £800billion of assets under management and another £250billion in bank deposits. There are also thousands of investment funds and hundreds of family offices. We believe with our new approach we can make a huge difference and actively help the whole offshore sector”.
Having obtained its licence, Bank Aston now moves into the build phase of the bank with the intention of launching in 2026. It will then begin accepting deposits from institutional clients while rolling out its full product offer.
Kevin Brown, Bank Aston’s new chairman, adds: “I don’t think you can over-emphasise how important it is to the offshore financial community to have their own banking champion. We think Bank Aston has the potential to transform the entire offshore financial system”.
