Emergence of Accounts Supporting Multiple Currencies

In the ever-evolving world of finance, multi-currency accounts are making a significant impact, particularly in Asia where they hold the largest market share. As commerce becomes increasingly globalised, these accounts are poised to become more prevalent.

Major banks in Hong Kong and Singapore, as well as fintech companies like Currencycloud, have already started offering multi-currency accounts. These accounts allow customers to hold and transact in multiple foreign currencies with digital ease, making them particularly popular among expats, frequent travellers, and businesses dealing in multiple currencies.

Digital wallets, such as Skrill and WorldRemit, also enable consumers to hold multiple currencies without linking their bank details. These wallets have been covered in a previous article in relation to cross-border payments.

Europe is also embracing the trend, with banks like Revolut and fintech companies offering multi-currency accounts. These accounts are popular in the UK and among international travellers or businesses dealing in multiple currencies. Countries with high international trade or travel, such as the UK, Germany, and Switzerland, are common users of multi-currency accounts.

The growth of multi-currency accounts is not limited to traditional banks. Neobanks and payment companies are also entering the market, offering accounts that can be set up quickly and at no cost, in contrast to incumbent banks.

ClearBank has recently announced the launch of a service enabling banks to offer multi-currency accounts via an API-based connection to J.P. Morgan. This move is expected to further accelerate the adoption of multi-currency accounts.

As the product area expands, multi-currency products may evolve to be offered as full banking products or wallets in the future. The focus of this article is on multi-currency accounts, which have unique associated bank details.

In conclusion, the trend towards multi-currency accounts is a clear response to the increasing globalisation of commerce. As more and more players outside of the big banks enter the market, it is likely that these accounts will become even more prevalent in the future.