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 £110,000 (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 £110,000 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.
Safeguarding and deposit protection are not the same thing
This distinction runs through the whole comparison above, and it is the single most important thing to understand before deciding how much to hold where.
Under a deposit guarantee scheme, the protection is a compensation arrangement: if the bank fails, the scheme pays eligible depositors up to the applicable limit, and the mechanism exists specifically to return money quickly without depositors having to pursue a claim.
Safeguarding works differently. Customer money is held separately from the firm's own funds, so in principle it is not available to the firm's general creditors and should be returned to customers. But the return happens through an insolvency process rather than through a compensation scheme, which means it can take time, may involve the costs of the administration, and depends on the segregated records being accurate. It is meaningful protection and it is not the same protection.
The practical conclusion is the one implied throughout this guide: an EMI account is a good place for money that is moving and a poor place for money that is sitting.
Where digital accounts commonly cause difficulty for expats
A review can freeze the account without notice. Automated monitoring is a feature of these platforms, and an unusual pattern — a large incoming transfer, a new country, a first payment to an unfamiliar counterparty — can suspend access while it is checked. The exposure is not that this happens but that it happens to the only account you have.
Support is asynchronous when the problem is urgent. In-app chat is efficient for routine matters. It is a poor channel when funds are held, you are in a different time zone, and a completion date is approaching.
Address and residency requirements change. Eligibility often depends on residence in a supported country, and moving can affect the status of an existing account. Notifying a change of country proactively is better than being found to have an out-of-date address on file.
Formal acceptance is inconsistent. As noted above, statements from an EMI are not always accepted as proof of address or of funds for mortgage applications, visa applications, school enrolment or property purchases. This is worth testing before you need it rather than at the point you do.
Why the account is free, and what that tells you
The comparison table shows no minimum balance on the digital side against £25,000–£50,000 on the traditional one. That gap is not generosity, and understanding where the revenue actually comes from explains most of the behaviour described above.
An EMI or app-based bank earns from the flow of money rather than from the stock of it: a margin on currency conversion, interchange on card transactions, subscription fees on the paid tiers, and a return on the aggregate balances it holds. Every one of those revenue lines rewards activity. None of them rewards a customer keeping a large balance sitting still, and none requires the provider to know anything about that customer beyond what compliance demands.
A traditional bank with a minimum balance is monetising the opposite thing. It earns on the balance, on lending against it, and on the products it can sell to someone whose whole financial position it can see. The minimum exists because a relationship costs money to maintain, and the bank is deciding which relationships are worth the cost.
Both models are rational, and neither is a criticism. But they produce exactly the differences that catch expats out. The provider with no relationship revenue has no commercial reason to staff a phone line, no relationship manager who can vouch for you when an automated review fires, and no interest in your mortgage application. It is also the reason a digital account is superb at moving money and indifferent to holding it — the pricing is telling you what the product is for.
Two habits follow from that, and they are worth stating as habits rather than principles. Keep the balance at the working level you actually need and sweep the surplus back to the primary relationship, because the surplus is earning the provider more than it is earning you. And keep your registered address and identity documents current with every provider, since expired identification is the most common reason an account is restricted — a purely administrative failure with disproportionate consequences when it is the only account you can reach.
Related reading: multi-currency banking for expats, our offshore accounts guidance and currency risk management for expats.
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 £110,000 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 £110,000 (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.