Brexit problems could lead to some people finding themselves without a bank account according to deVere Group. According to their analysis, there are around 1.8 million British expats living in Europe and these people could have their UK based bank accounts closed imminently if new rules aren’t agreed soon.
Affected customers were urged to seek alternative option with providers who already operate under “pan-European” rules to sidestep these avoidable issues.
Fortunately, it was highlighted that challenger banks, digital companies and fintech firms can help with this problem where traditional firms may not.
There is some evidence consumers are already wising up to this in areas with deVere Group highlighting that throughout Q3, “Vault”, their own global money app and card service, saw a jump in enquiries of 67 percent.
Nigel concluded: “There’s a growing need for clients to have borderless access to, and management and use of their money.
Shon Alam, the CEO of Bidwedge, commented on these findings, highlighting the importance of keeping traditional cash access secure: “Despite all the calls from people to use cards, cash is still incredibly important to millions of Brits across the country.
“Communities rely on cash and for businesses, it is cheaper for them to process cash rather than card payments, so it actually can help thousands of firms that are struggling right now.”
Despite the warnings from industry insiders, it should be noted the UKs financial regulator, the FCA, recently expressed a certain amount of optimism for relations with the EU going forward.
Yesterday, Nikhil Rathi, the CEO of the FCA gave a “Facing the future” speech which addressed the challenges and priorities for the regulator as 2021 approaches.
Within this speech, Nikhil outlined the continued focus on ensuring the EU departure runs as smoothly as possible: “As we responded to the Covid crisis, we have also kept our focus on readiness for the end of the transition period after the UK’s departure from the European Union.
“First, we’ve continued to work to minimise disruption. We now have temporary regimes that will allow approximately 1,500 non-UK firms to continue operating in the UK. We are also ready to take on a new set of responsibilities onshored into the UK regulatory framework.
“Secondly, we continue to operate in an open, co-operative way, providing technical support to the Government in negotiations and deepening our relationships with international regulators, and adapting to our new relationship with EU counterparts.”