Geopolitical uncertainties such as Brexit, Trump and the chaos in Catalonia are driving demand for multi-currency accounts – and within ten years they will be the norm, according to deVere chief executive Nigel Green.
Issues such as the deadlocked Brexit talks and what a post-Brexit landscape in Europe will look like are causing concern for those using international financial services on a regular basis.
Add in the unpredictability of the Trump presidency, and the chaos in Catalonia as the Spanish government takes a hardline stance with the regional pro-independence movement, and a picture emerges of varied geopolitical factors presenting “huge and sobering questions” for international financial and economic commentators.
In particular, Green points out, currency risks will move to the forefront of many investors’ and holidaymakers’ minds when they look to the uncertainty surrounding European and global politics.
“We’re living in an increasingly uncertain world,” says Green, pictured left. “Serious, far-reaching and ongoing geopolitical developments are driving internationally minded people to concentrate on political risk and currency risk.
“This uncertainty is resulting in more and more people beginning to look at the possible impact such issues have on their wealth and how they can mitigate this risk. Understandably, this is spiking huge interest in and demand for accounts in which you can hold money in different currencies.
“Ever since the major and sustained drop in the pound immediately after the Brexit referendum, people have become more focused that they could have currency risk.
As reported, earlier this year, deVere Group launched the deVere Vault a multi-currency app/bank account. And it recently added 22 different ‘currency wallets’, taking the number it offers to 27. This free service allows expats and holidaymakers that move between countries, to be able to move their own money without any currency fees or additional bank charges.
Brexit a ‘wake-up call’
“It was a wake-up call to many across the world; it was a watershed moment.
“Multi-currency accounts will be the norm within 10 years – most people within a decade will have the ability to access, use and manage their money in different currencies – for three main reasons.
“First, people have woken up to the fact that even ‘remote’ political risks can be linked to currency risk.
“Second, each year there are more and more expatriates and internationally-mobile people and businesses.
“Third, holidaymakers are increasingly aware of and unwilling to accept the rip-off charges their traditional banks impose on them for using their own money overseas,” added Green.