COVID-19 Pushed Offshore Banks to Go Digital

The COVID-19 pandemic has served as a reality check for many. Banks are seeing an urgent need to switch over to digital banking, and if they hadn’t already started the process, banks are now working to create seamless digital banking for their customers. Not only are onshore banks making the change, but offshore banks are ramping up their digital offerings. This is promising for asset holders and anyone wanting to use overseas banks as a tactic in their asset protection planning.

Let’s first consider the changes that have already been happening in the banking sector, specifically offshore. In offshore banking, FATCA and CRS have changed the ways things are done, and they’ve changed the reasons why someone might choose offshore banking. Still, offshore has long been a promising means of asset diversification. With offshore banking, individuals can enjoy lower taxes, privacy, and more options in investments.

Offshore Banks: Well-sought-after by Asset Holders

Now, perhaps more than ever in recent history, offshore banking is a major contention on the radars of many. The COVID-19 pandemic has caused investors to consider pulling assets out of domestic markets and investing elsewhere where things are more stable. This isn’t the first time in history investors have used such tactics. In fact, most catastrophic events that impact domestic markets will cause investors to look for alternatives.

Perhaps most worrisome are the trends history shows us. Investors are aware of what history has shown us. In times of catastrophic events, such as the COVID-19 pandemic, defaults, financial restrictions, bailouts, restrictions on withdrawals, currency controls, and forced restructuring are just some of the things that make domestic banking dangerous for investors.

This is where offshore banking and technology have met to create the perfect environment for investors. COVID-19 has created a push for digital banking.

The Pandemic: The Best Time for Going Offshore?

Fortunately, for the past decade or so, central banks and others involved in the sector, including policy makers, have worked to increase banking regulations and increase the amount of bank liquidity and capital. This makes for a better banking environment.

It also allows for a number of digital offshore opportunities. With the inclusion of virtual banking, offshore banks can more effectively deliver exactly what consumers want. They see that their customers are looking for convenience. International investors don’t want to travel abroad unless it’s imperative. That’s just one reason why virtual offshore banking is so desirable. You can go online and set up an account within minutes without ever setting foot on foreign soil.

Digital offshore banking also makes it easy for investors to manage their offshore financial holdings and investments. Transferring funds can be done easily at the touch of your fingertips, thanks to digital banking. Virtual offshore banking also opens up offshore to pretty much anyone who’s interested. Anyone from millennials to retirees can enjoy the perks of offshore banking because digital makes it so easy and accessible. When banks take away their branches and only offer digital banking, you also tend to see higher returns on your deposits. At the end of the day, digital banking can put more money in your hands.

More to Come in the (Near) Future

As technology continues to evolve, there’s even more on the horizon in terms of what virtual offshore can do for you. With the advent of blockchain, you can expect an even more safe virtual offshore banking experience. Chatbots and artificial intelligence (AI) are already being employed and are helping make virtual offshore banking an even more comfortable place for investors, giving them more effective, faster customer service.

Offshore banks are known to be ahead of the pack in terms of digital banking. Since they’ve already had to adapt to working with customers who couldn’t just step into their branch, they were rolling out digital banking before many onshore banks. So, while domestic banks might be struggling to accommodate investors right now due to shelter in place orders, offshore banks are continuing business largely as usual.

So, if you’ve been looking for a way to diversify your assets that’s also extremely accessible right now, during the pandemic, offshore offers a wealth of benefits.

How to Get Started?

When it comes to getting started with offshore banking, it all starts with choosing the right jurisdiction.

No two offshore jurisdictions are created equally. You’ll want to consider your goals. Do you want to lower your tax burden? Bank with anonymity? Enjoy better access to foreign markets and currency? What about the global reputation? These are things you’ll need to keep in mind, as various offshore jurisdictions have different regulations in place.

You can DIY the whole process, but it's recommended to contact a trusted service provider to guide you through the process.

To Conclude...

There is no better time to go offshore than today. The pandemic has pushed the banking sector to rush the adoption of digital/online banking to accommodate clients. The adoption means more opportunities and better services for both the banks and banking clients.