In the world of fintech, there are always new and evolving technologies and tools that are changing the landscape of the financial industry. Online banks have been revolutionary in the way individuals and even businesses handle financial transactions online.
Today, we’ll be taking a closer look at one of those online banks - Wise, previously known as Transferwise. Wise is one of the best-funded fintech in Europe, for one big reason: They disrupt cross-border transfer fees by offering cheaper rates than banks.
But first thing first - how does Wise change the banking industry - including the offshore banking sector?
The Gold Standard in Offshore Asset Protection
When we look to offshore asset protection, we can see a myriad of emerging trends. One such trend can be found in the form of offshore incorporation agencies. These agencies are designed to help clients navigate the sometimes-challenging process of setting up their offshore companies and accounts.
Right now, there is an influx of clients who are requesting to set up offshore companies while also opening a Wise account.
Thanks to the Internet, setting up an offshore company is no longer an obscure process. You can get started by searching for a reputable registered agent online, or seek recommendations from trusted sources. This is important because you need to navigate the jurisdiction’s requirements and be sure that you’re staying in compliance at every turn.
With governmental bodies such as the IRS going after high net worth individuals and the like more fervently than perhaps ever, it’s extremely important to be sure that you’re in compliance to avoid fines, penalties, and even jail time.
So, how to setup an offshore company?
The first step in this process, whether you use an offshore incorporation agency or go it alone, is to choose the right jurisdiction. You’ll want the jurisdiction that will accommodate you the most, especially in terms of taxes, and having a professional in offshore might be a great idea if you feel uneasy at this point.
The next steps involve setting up a bank account, offering any documentation that might be required for your incorporation, and creating an official address for your offshore company. Without ever setting foot in a jurisdiction, you could set up a company there and take advantage of the various benefits. These benefits, such as tax reduction, security, and privacy, are all critical when setting up an offshore company.
For years in the past, this was a gold standard in offshore banking. Now, however, things have changes - partly due to fintech companies like Wise.
Wise Disrupts Offshore Banking
Wise's services change asset holders' perspective and provide more options for offshore asset protection. Instead of signing up for an offshore bank account - which can cost you hundreds, if not thousands of dollars, you can now opt for a Wise account - which cost you virtually nothing.
Indeed, you can now establish your offshore presence by setting up an offshore company with the help of an International Corporation service and sign up for a Wise account online yourself. Of course, since every financial-related legal entity is required to adopt KYC policies, you're required to present personal information, such as your passport/National ID, residency status, and so on.
With an offshore corporation and Wise account, people can more freely transfer money in various currencies between their company accounts and personal accounts.
What can Wise Offer you
A Wise account entitles its holder to holding 50+ currencies in balances in their account, instant conversion of currencies with low fees, setting up direct debits in GBP and EUR, and a Wise debit card.
Wise is registered with a number of financial authorities around the world using real mid-market exchange rates. This offers a better deal than most domestic banks. Wise lets users carry out a variety of transactions online while also offering the height of online security. They use HTTPS encryption and 2-step authentication - both of which are desirable fintech security features in today’s world.
To get a Wise account, users are required to become verified using their identification card, proof of address, and other documentation.
Once this is complete, offshore bank account holders can get the most form having a corporation setup in an offshore jurisdiction.
Takeaway
Right now, there is striking uptick of people who are looking to incorporate offshore and who are also interested in a Wise account. Wise has done a wonderful job of adapting their services to meet market demands, and we think this trend is just another reflection of the times. People everywhere are worried about economical circumstances, new and upcoming tax legislation, and general financial security. In response to these worries, the financial industry is seeing major shifts.
One of these shifts comes in the shape of people looking to offshore, and they’re looking for the best potential possibilities for their finances in light of an unknown financial future. Online banks such as Wise are making it easy for people to bridge the gap between their offshore accounts and what they have fast access to. This is a trend we don’t see going anywhere in the foreseeable future.
MAY
2021
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