Bank Aston has received authorisation from the Guernsey Financial Services Commission (GFSC) to launch a new offshore bank.

The granting of the banking licence, which is subject to conditions during Bank Aston’s launch phase, marks Guernsey’s first locally licensed bank for nearly 30 years.

Bank Aston will serve offshore trustees, investment funds, and family offices in the Channel Islands financial services industry.

“Banking is becoming a huge problem for offshore institutions,” said Bank Aston co-founder, James Bennett.

“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.”

Bank Aston said it would be using a new onboarding process, technology, and an understanding of the offshore market to provide a quicker and more competitive service to trustees, investment funds, and family offices.

To support the launch, Bank Aston has appointed Kevin Brown as chair, who previously worked at Royal Bank of Scotland, Bank of England, and the Financial Conduct Authority, and Paul Gorman as CEO, who has spent 20 years in senior management roles at banks such as Barclays and Santander.

“The offshore market is huge,” stated Gorman. “In the Channel Islands alone, there is over £800bn of assets under management and another £250bn 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.”

Bank Aston co-founder, Jay Goss, added: “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.”

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