Transferring and managing money can be tricky for expats given the fact that many countries differ in their banking systems, means of account identification, levels of technology and convenience, and other red tape. Below are three ways of combating financial bureaucracy abroad.
In many European countries, for instance, you would need to open a bank account with an IBAN (International Bank Account Number) in order to pay bills, load cards for public transport, do online shopping, and much besides. To ease much of this kind of red tape and headache, there are three useful platforms.
TransferWise
Especially popular among American expats who wish to transfer money from their US bank account to their host country account, TransferWise enables users to send money to around 60 countries.
As per Forbes Advisor, each country in the world has a unique bank account identification system. Accounts in Europe use the aforementioned IBAN, the US makes use of routing and account numbers, Australia uses a BSB (Bank State Branch) code and account number, and so forth. This complicates international banking.
What TransferWise does is facilitate ‘borderless banking’ by allowing expats to manage their money in different currencies and obtain bank accounts no matter the country-specific codes. Expats with these multi-currency accounts are then able to get local bank details – which includes the various codes unique to each country – for eight different countries/regions: the US, Australia, the UK, Europe, Hungary, New Zealand, Romania and Singapore. Customers can then also opt for a debit card attached to their multi-currency account, which will allow them to withdraw money in the currency of their current location. TransferWise also allows for affordable transfers of money from one country to another.
N26
A great online banking solution, N26 was listed on Forbes’s The World’s Best Banks in 2020. Unlike TransferWise, which is more of a money transfer service, N26 offers more traditional banking services such as a cheque account and an online app with a bouquet of utilities.
Exceedingly easier to open than a traditional bank account in a new country, N26 is ideal for expats in the US or Europe and offers several tiers to choose from.
The first or standard N26 account is free of charge, comes with a debit card and allows three free withdrawals per month. The next tier, N26 You, demands a fee of around EUR 10 and includes five free withdrawals in the expat’s region, unlimited ATM withdrawals worldwide and other benefits such as travel insurance. The third tier is called the N26 Metal account, costs around EUR 17 and offers perks typical of a travel rewards credit card, including eight free withdrawals in the expat’s region be it the US or Eurozone, unlimited ATM withdrawals globally, travel insurance, exclusive partner offers, car rentals, phone insurance and more.
Usefully, if you’re a TransferWise customer, you can make foreign currency transfers directly from your N26 account.
Revolut
For those who need their money management tools to work a bit harder and go the extra distance, Revolut bridges the gap between TransferWise and N26 and comes with add-ons such as management of investments and cryptocurrencies.
Revolut has expanded massively over the last six years and now covers more than 35 countries, with more than 12 million customers, supporting over 30 currencies.
It also works according to a tier system. Standard accounts include a free account in the expat’s destination with the required national identification code, exchanges into other currencies, free ATM withdrawals up to a certain amount, instant access to five cryptocurrencies, and one free cross-border transfer. The Premium membership gets you the standard account’s benefits, plus more free ATM withdrawals, overseas medical insurance, flight insurance and unlimited cross-border transfers, for around EUR 8. The Metal tier gives customers all the Premium benefits, plus cash-back rewards and more free withdrawals, for around EUR 14. All tiers come with different investment features.
Expats have enough stress with relocation, new environments, job searches, language barriers and more, to have to stress about their finances too. These platforms, according to Forbes, are the three must-have financial solutions for any expat.
