What’s happening with offshore banking this year?
Offshore banking has been one of the easiest ways for many investors to protect their assets, lighten their tax load, or take advantage of higher security and privacy. In 2019, as financial business is seeing a huge shift in the direction of fintech, it only makes sense that offshore banking would follow the trend.
Before diving into what we will see this year with offshore banking, let’s take a look at why investors are banking offshore in the first place. One of the biggest draws to offshore banking is security. For some, depositing money into a bank in their home country is not safe. Do you trust your bank? Do you think that your money could be safer or that your bank could be doing more with your money? Maybe it’s time to try offshore banking.
Luckily, you can choose a country that has historically had higher regulations, transparent jurisdictions, and an all-around more secure banking system. This is also beneficial for those who have chosen to expatriate. Many expat destinations don’t have the safest banks.
For those feeling the restriction of the investment opportunities at home, offshore banks offer a wide choice of funds and investments that aren’t available in your home country. It’s an easy and great way to diversify your portfolio.
Confidentiality is another leading advantage of banking overseas. Many countries have laws that hold banks to strict confidentiality with serious consequences if it is broken.
In terms of investment, banking offshore can help diversify your portfolio, protect your assets, and is the first step in moving your assets out of your country. Opening a bank account offshore also plays a key role in forming an offshore corporation, offshore SD IRA, or international trust. Many offshore banks offer investment opportunities, managed investment accounts, and foreign exchange services.
Holding money abroad has also proven to be a smart asset protection technique. In the event in which it’s needed, having money in an offshore account can assure you don’t lose everything.
Not only is it advantageous to have an offshore account, it’s not difficult. Opening a bank account in a different country can be easy, usually completed from home via the internet and courier. Very rarely do banks require applicants to participate in a one-on-one meeting in person.
There has been a recent shift for those looking to manage their finances that has drawn people to using technology to help them with this task. With this push, fintech startup companies directly help with traditional banking and financial institutions. In several countries around the globe, fintech companies are slowly taking over, providing services and products that were once found only through financial institutions.
The shift we are seeing is that of a digital age. Tech-savvy individuals are seeking easy access, convenience, efficiency, and speed in every part of their lives, including their finances. Having the ability to make transactions from the convenience of a phone or other electronic platform is what is creating this strong push towards fintech. Roughly 1 in 3 apps today are used by people to manage their finances.
Fintech advances in banking include mobile banking, blockchain development, and growth in artificial intelligence.
Experts are saying that more and more e-commerce companies are establishing themselves around the world and want to have their business streamlined by offshore banking and leveraging fintech. This means that these companies will take advantage of the ability to bank anywhere at any time. Where these companies are doing their banking will now begin to spread into many of the jurisdictions that are favorable for finances.
The number of products we see being sold on the internet will increase as we see a shift in how we do our business.
Corporate banking is not expected to be affected by this change.
Investment and banking teams pick up on the trend
As more and more individuals and corporations pick up on the offshore banking trend, so are many financial experts. Banks and investment teams are beginning to focus on offshore banking. Specialized teams are developing to handle offshore investing and banking.
Beyond the day-to-day rolls a financial team assumes, these specialized teams will also oversee laws and regulations pertaining to compliance and offer clients ways to structure their finances for banks and clients.
One of the biggest trends that is popping up for this year is heightened interest in offshore investing in oil and natural gas. After offshore investment hit a decline over the past few years, prices have somewhat stabilized, sparking the interest of many investors.
Where We Come In
Fintech is a fairly new area of investment and combines two of the most promising sectors in today’s world: finance and technology. It is highly popular among small businesses and startups.
There has been a recent shift for those looking to manage their finances that has drawn people to using technology to help them with the task. With this push, fintech startup companies directly help with traditional banking and financial institutions. In several countries around the globe, fintech companies are slowly taking over, providing services and products that were once found only through financial institutions.
Alpen Partners partners with many banks around the world, the most significant and prestigious being in Switzerland and Monaco. Building on many years of experience in private banking in Switzerland, Alpen Partners Wealth Management International AG provides investment advisory services to U.S. clients. Swiss banking is highly regarded around the world, well known for being sophisticated and discreet.