With the annual quality of life survey indicating that nearly all British expats regard online and telephone banking as “essential,” the chief executive of the financial planning company said in the last seven years he has witnessed a rise of clients using online banking methods, with many now insisting on using technologies to move their money.
“But it’s not just about banking,” said Lodhi. “It’s general financial matters, like clients keeping track of their investment portfolio online.”
The Spectrum co-founder also said there has been a surge of interest in clients using services like Currencies Direct, which offer competitive rates for currency transfers.
He said: “The savings using that online service are so great; once we transferred £600,000 into euros and – when compared with the rates the banks could offer – we managed to save about €1,800.
“That encourages people to use online services more because they can save money.”
The report from NatWest International Personal Banking (IPB) suggests that a high proportion (89%) of expats trust the security of online services, which Lodhi proposes is down to the “huge security checks” and the free insurance provided by some banks.
The seventh quality of life index also demonstrates a decline in the number of expats seeing human contact as an important feature for fulfilling their banking needs.
"Efficiency and convenience"
Despite admitting that online banking is still a new service for some clients, he said it has almost caused traditional banking methods – such as visiting the local branch – to “die out”.
“People use online banking for efficiency because they don’t have to walk to the bank or post a letter.
“Our clients are in countries like France, Spain and Italy, so for some expats, there can be language issues when visiting the bank."
He added: “Online banking is all about efficiency and convenience.”
Although there has been a rise in clients using online services, Lodhi suggests some banks are considering going back to the older personalised style of banking for wealthy customers.
However, the head of international wealth & immigration at London & Capital, Mark Estcourt, argues that traditional methods of banking will never die out because “there are some transactions that will always need face to face contact”.
Good grasp
He said many of his clients, who are mostly expats from Asia, Russia and the Middle East, have a good grasp of technology and would find it frustrating not to have access to financial services online.
“The tendency to use technology is getting stronger and stronger, and the younger they are the more they want access,” he said.
“It’s all about transparency and communication, and for most of our entrepreneurial clients who are spending a lot of time building their businesses, it’s also about timing.”
