If you have ever attempted to open a bank account in a foreign country you’ll know that the process is seldom quick and easy. Proof of residence, local employment, supporting documents, and multiple branch visits are just a few of the hoops you may have to jump through before you are approved.
For this reason, storing wealth offshore or investing in a foreign country has long been considered a difficult endeavor best left to the professionals. Now, modern technology is beginning to change this perception, with digital banks opening up a world of foreign investment to everyday citizens.
The Advantages of Digital Banking
Ease of registration
The key advantage presented by digital banking is online account registration, a process made possible by improvements in cybersecurity and online identification services. Most digital banks no longer require potential customers to visit a physical branch, with identity verification completed simply and easily over the Internet.
Assisting foreign customers
For businessmen looking to deal with foreign clients, many digital banks provide the opportunity to bank in a customer’s local currency. For example, businesses operating outside of the EU may wish to open a Euro-based bank account to better serve their European clients. This can help to make payments, transfers, and settlements faster and more affordable for both parties.
A hedge against economic uncertainty
Maintaining a second bank account overseas can provide a financial hedge against political or economic instability, arbitrary government seizure, capital export restrictions, or other similar complications. However, many lesser-known digital banks in foreign countries are not properly licensed and regulated so always ensure you are dealing with a legitimate entity. Banking with an unlicensed bank means you are essentially giving your money to somebody and have no legal recourse should they disappear with it.
Safe and secure business banking
EQIBank is a fully licensed and regulated digital bank located on the island of Dominica in the Caribbean. It now offers Euro bank accounts to its customers in 180 countries around the world. Unlike many smaller digital banks, EQIBank offers a full range of corporate banking services to match those of any traditional brick-and-mortar bank. Wealth management, alternative asset custody, business loans, financing, and 24-hour online access are just a few of the many services EQIBank customers benefit from.
Fast and affordable international remittance
Nowadays, most digital banks utilize blockchain technology to offer international transfers at a fraction of the cost of traditional banks. Customers can now send money abroad instantly from their mobile phones at the touch of a button – a process that previously took 3-5 days and could cost up to 10% per transaction.
While traditional banks still offer personal service and peace of mind that comes with decades-old institutions, digital banks are quickly catching up and meeting similar expectations. In many ways, digital banks can offer services of equal quality in a more efficient manner and at a lower cost.
For businesses or high-net-worth individuals, maintaining multiple bank accounts in both the digital and traditional sphere will provide the best balance of all services. Digital banking is quickly becoming an integral part of the international business environment and those not getting online will soon be left behind.