Over the past decade, digital banks and electronic money institutions have transformed the options available to internationally mobile individuals. Products that would have required a relationship with a major private bank — multi-currency accounts, real-time currency conversion, international debit cards — are now available to anyone via a smartphone app, often for free or a small monthly fee.
Digital banks are genuinely useful for expats. But they are best understood as powerful supplementary tools, not replacements for traditional offshore or international banking. Understanding what they do well — and what they do not do — helps you use them appropriately.
Wise (formerly TransferWise)
What it is: Wise is an FCA-regulated Electronic Money Institution founded in 2011, initially focused on international money transfers and now offering a broad multi-currency account product. It operates in the UK, EU, US, Singapore, Australia, and other markets.
Multi-currency account. Wise's multi-currency account (the "Wise Account") holds balances in 40+ currencies, with local account details in GBP (UK sort code and account number), EUR (IBAN), USD (US routing and account numbers), AUD, CAD, and others. This means you can receive local payments in multiple currencies as if you have a local bank account in those countries.
FX rates. Wise charges the mid-market exchange rate plus a small transparent fee — typically 0.3–0.8% depending on the currency pair. This is significantly better than banks and one of the main reasons Wise is so widely used for international transfers.
Limits. Wise does not charge for holding currency balances, but there are limits on certain features depending on account verification level. Large transfers may trigger additional verification. Wise is not suitable as a vehicle for holding large savings balances.
Protection. Wise is an EMI, not a bank. Customer funds are safeguarded (held separately from Wise's own operational funds), but are not FSCS-protected. This is the key limitation for anyone considering Wise as a primary account.
Best for: Day-to-day multi-currency spending; international transfers of £1,000–£50,000; receiving salary or income in multiple currencies; expats who need local account details in multiple countries.
Revolut
What it is: Revolut launched in 2015 as a multi-currency prepaid card and has grown into one of Europe's most prominent fintech platforms. It now holds a UK banking licence (granted 2024) and operates banking licences in Lithuania (covering EU), the US, and several other jurisdictions.
Features. Revolut offers multi-currency accounts, international transfers, foreign exchange at or near the mid-market rate (with some daily limits on the free tier), a multi-currency debit card, cryptocurrency exchange, stock trading, and various other features. The depth of functionality is greater than most alternatives.
Tiers. Revolut operates on a freemium model — the free tier includes basic multi-currency functionality with limits; paid tiers (Revolut Plus, Premium, Metal) offer better rates, higher limits, and additional features including travel insurance and airport lounge access.
FX limits. On the free plan, mid-market rate FX is available up to a monthly limit (typically £1,000 per month as of 2026); above that, a small markup applies. Paid plans have higher or unlimited mid-market FX.
Regulation. UK deposits with Revolut Bank Ltd (the UK banking entity) should be FSCS-protected up to £120,000 (the limit since 1 December 2025). However, not all Revolut accounts are held with the banking entity — it is important to understand which entity holds your account. In the EU, deposits with Revolut Bank UAB are protected under the Lithuanian DGS up to €100,000.
Best for: Day-to-day multi-currency spending abroad; crypto and investment access from a single app; clients who want more features than Wise within a single platform.
N26
What it is: N26 is a German digital bank (licensed in Germany and operating across the EU) that offers mobile-first current accounts. It is primarily EU-focused. N26 operates under a full German banking licence, with deposits protected by the German deposit guarantee scheme up to €100,000.
Features. N26 offers a euro-denominated current account, a debit card (with free foreign spending in many countries), and basic savings products. Multi-currency account functionality is more limited than Wise or Revolut — N26 is essentially a European current account with good foreign spending features rather than a true multi-currency product.
Geographic limitations. N26 is available in EEA countries but is not available to UK residents (following Brexit, N26 withdrew from the UK market). US residents can access N26 through a separate US entity.
Best for: EU-resident expats who want a modern, mobile-first euro current account; clients who have relocated to an EU country and need a local euro account.
Monzo
What it is: Monzo is a UK-licensed bank (FCA-regulated, FSCS-protected up to £120,000 since 1 December 2025) that offers a current account via a mobile app. It is primarily a UK domestic product.
International functionality. Monzo does allow foreign spending on its debit card without foreign transaction fees (via Mastercard's exchange rate, which is near mid-market), and allows international transfers via an integration with Wise. However, it does not offer multi-currency balances, is not designed for non-UK residents, and has limited functionality for genuine cross-border banking needs.
Who it suits. Monzo is useful for UK residents or those who recently left the UK and want to maintain a UK current account. It is not suitable as the primary banking solution for an expat who has relocated and needs genuine multi-currency and international banking capabilities.
Digital banks vs traditional offshore banks — key differences
| Feature | Digital Banks (Wise/Revolut) | Traditional Offshore Banks |
|---|---|---|
| FSCS/deposit protection | Limited / varies | Yes (up to £50k–€100k) |
| Multi-currency accounts | Yes — extensive | Yes — major currencies |
| FX rates | Near mid-market | Better than high-street, below mid-market |
| Credit products | Very limited | Yes — mortgages, loans available |
| Minimum balance | None | Often £25,000–£50,000 |
| Relationship banking | No | Yes |
| Customer service | App chat | Phone / dedicated relationship manager |
| Accepted for formal purposes | Sometimes | Typically yes |
| Large transfer limits | Moderate (may require manual process) | High |
Recommended approach for expats
The most practical approach for internationally mobile individuals is a layered banking structure:
- Primary banking relationship — offshore or international bank (Isle of Man, Channel Islands, Cyprus) for savings, large transfers, and formal banking needs
- Multi-currency day-to-day account — Wise or Revolut for daily spending in multiple currencies, small transfers, and receiving income in various currencies
- Specialist FX broker — for large one-off transfers (property purchases, large investment moves)
Digital banks work best as the second layer — accessible, low-cost, feature-rich for daily use — not as a replacement for the first layer.
How Global Investments can help
We work with clients to structure their banking appropriately across these layers, advising on which offshore or international banks are most suitable for their situation and introducing clients to specialist FX brokers for large transactions. Digital banking products change rapidly — we stay current with the regulatory and product landscape to give clients up-to-date guidance.
Frequently Asked Questions
Is Wise a bank?
Wise is not a bank in the traditional sense — it is an Electronic Money Institution (EMI) regulated by the FCA in the UK and equivalent regulators in other jurisdictions. This means customer funds are safeguarded (held separately from Wise's own funds) but are not covered by the Financial Services Compensation Scheme (FSCS). In practice, safeguarding provides a degree of protection, but it is not the same as FSCS deposit protection (up to £120,000 since 1 December 2025). Wise is best used for transfers and day-to-day multi-currency spending rather than as a savings vehicle.
Is Revolut regulated?
Revolut has a UK banking licence (granted 2024) through Revolut Bank Ltd, which means UK deposits up to £120,000 (the FSCS limit since 1 December 2025) may be FSCS-protected. However, Revolut operates multiple entities in different jurisdictions — in the EU it operates through Revolut Bank UAB (Lithuania), where deposits are protected by the Lithuanian deposit guarantee scheme up to €100,000. Regulation status varies by country of residence. It is worth checking the specific entity you hold your account with and what protection applies.
Can I use digital banks as my only bank account as an expat?
Digital banks are best used as supplementary accounts, not primary banking. Their limitations for expats include: transaction and balance limits that may not suit significant sums; limited or no access to credit products; customer service that relies primarily on in-app chat (unreliable for complex issues); not always accepted for formal purposes such as mortgage applications or proof of address; and protection that differs from regulated bank accounts. For your primary banking relationship, a traditional offshore bank or international bank remains more appropriate.
Does Monzo work abroad?
Monzo works for spending abroad and can be used internationally, but it is primarily a UK current account and not designed as an offshore or multi-currency account for expats. It does not support multiple currency balances (though it has foreign spending in some currencies), has limited international payment functionality, and cannot generally be opened or maintained by non-UK residents. For expats who have left the UK, Monzo is typically not a practical option.
This guide is for general information only and does not constitute financial advice or a personal recommendation. Banking regulations, tax rules, and product availability change — always verify current rules and seek advice from a qualified independent financial adviser or regulated banking specialist before making any decisions. The value of investments can fall as well as rise and you may get back less than you invest.