According to a London Stock Exchange report, Alliance and Leicester, which is a leading British onshore banking provider less well known for their offshore and international banking facilities and services, has commissioned an in depth survey of expatriate offshore banking behaviour so that they can understand their potential client-base better.
The survey reveals what we at Degtev really already suspected – although there is one rather surprising finding! So, let’s take a look at the expatriate offshore banking survey from Alliance and Leicester and see what they discovered about expat banking patterns and behaviour.
The first thing the survey reveals is that the vast majority of expatriates questioned bank online. This of course makes a lot of sense because of the ease of banking over the internet nowadays, the level of security that banks have in place and the fact that expats live in many different time zones and therefore possibly find it difficult to manage their transactions during their chosen bank’s normal office hours.
However, what was interesting was the fact that many expats choose to stay with their original bank back in their country of original domicile and former residence even when they move abroad. If at all possible and as long as you are legally able to do so, it makes sense to maintain a bank account back home…however, it may not make sense to keep all your money in that account and it may not make sense to manage all your financial affairs through banks and advisories, brokers and institutions back in your home country.
Some expatriates do open bank accounts locally in their new country of residence – again this makes sense for managing day to day living costs and related expenses – but it may not be financially beneficial or make total sense from a taxation saving point of view to bring all your money onshore into your new country of residence either.
As Alliance and Leicester are keen to inform their potential expatriate client-base, many expats can utilise the benefits of banking and saving offshore as soon as they have relocated abroad. However, according to the findings of their expatriate offshore banking survey only around 30% of international citizens take their offshore advantage. If you fall into the 70% bracket of people who have not yet explored the option of arranging finances offshore and thereby potentially saving tax and earning better rates of interest – it’s time you did!
Finally, the really only surprising finding of the expatriate offshore banking survey was that a whopping 53% of all those with online banking access actually log on at least every other day – oh God – how sad! You’d think people had better things to do with their time abroad!