The GFSC Issues Its First Banking License In Almost 30 Years
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Guernsey, the second-largest island in the Channel Islands, located in the English Channel, has just seen the first banking license to be issued there in nearly 30 years.
While technically a part of the UK, Guernsey is a self-governing British Crown dependency which saw its last locally-based bank shut down in 1996. However, its financial regulator, the Guernsey Financial Services Commission (GFSC), just issued a new banking license to an offshore Bank Aston.
Bank Aston will provide services to offshore trustees, family offices, and investment funds across the Channel Islands’ financial market. It was established to provide a more efficient banking process for the local residents.
Now that it has obtained a license, Bank Aston will move into the next phase, which is the build phase. It intends to launch its services in 2026, when it will start accepting deposits from institutional clients as it continues to roll out its full product offer.
The Bank Is Seeing Strong New Management To Get Things Rolling
The bank has appointed Kevin Brown as chairman to support the launch. Brown is a senior leader with years of experience in the banking industry, having served at Royal Bank of Scotland, the Bank of England, and even the UK’s financial regulator, the FCA.
Joining him is Paul Gorman, who will take on the role of the bank’s CEO. Gorman has held senior management roles for the past 20 years, encompassing both corporate and investment banking. He worked at Barclays and Santander, so he also has more than enough experience to help Bank Aston establish itself in the new region.
The bank’s co-founder, James Bennett, stated that banking is becoming a significant issue for offshore institutions, as they face increasingly slow approvals, poor customer service, and exorbitant fees, with decisions being made remotely by legacy banks whose risk appetite is 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,” he said.
Bank Aston’s other co-founder, Jay Goss, who is also a Guernsey resident, stated that very few people realize how serious the situation is. He listed things like onboarding difficulties and issues with running accounts as something that is starting to impact the entire industry. However, he also sees an opportunity. “ 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,” he said.
