Online banking is advancing really fast. If we take a look at the past couple of years, we can see a transition from traditional banking, when everyone was required to go physically to online banking opened on a global scale.
Thanks to the internet, people now enjoy more freedom. In other words, international businesses started to thrive, people are traveling more, enjoying services, or buying products internationally.
Since we spend money all over the world without even thinking about it, having a multi-currency account makes the process much easier.
Online banking has also advanced over the years. When it first came out, it had limited features, but nowadays you can make international payments, manage multiple currencies from the same account, schedule payments, get detailed financial history, and much more.
This brings us to the question of how online banking makes managing multi-currency accounts effortlessly.
Let’s find out.
What is a Multi-Currency Account?
Financial service organizations sometimes come up with odd names for products and services, but not this time. Multicurrency accounts are precisely what you’d expect.
They let people and organizations keep, receive, and transmit funds in several currencies from the same account, providing complete visibility of their cash balances in one spot. They also have built-in capabilities for transferring currencies.
There are also online banks like Genome, that offer these services even for businesses, making their operations far less complicated.
If you want to learn more about Genome, click the link below: genome.eu/multi-currency-account/
It’s a lot easier and neater approach for individuals who utilize many currencies. Instead of moving all payments into one central single-currency account (and paying significant FX charges) or creating several bank accounts with multiple local banks (which can be difficult to maintain), multi-currency accounts keep everything in one location.
Seamless Exchanges
Just because we live in a digital world, we are making international transactions more than ever before. On top of that, traveling is much cheaper, and going to other places is now the new normal.
But traveling abroad means that you need to convert your money to a different currency, or let the bank do the process (which usually will cost you more money).
This is where multi-currency accounts come in handy. The process of being able to convert your money to different foreign currencies is simplified to a point where you only make a couple of clicks.
The days of calling the bank, that will put you on hold for eternity or going physically to a bank just to exchange some money are gone. Now you can swap between currencies through your phone, and get all the benefits from lower fees and better exchange rates.
Did you know that some online banking platforms offer exchange rates closer to the mid-market rate? That’s the rate banks use to trade among themselves, and it’s usually a lot better than what you’d get at a physical bank or airport exchange booth.
Cost Efficiency
The reason why many people choose a multi-currency account is because of the cost efficiency. Being able to swap between currencies at any time you want comes with a couple of benefits that will save you money.
First of all, you can choose the time when you do the exchange. This means that you can exchange currencies when you think they’ve reached a higher value. Additionally, most online banks that allow multi-currency accounts have favorable rates for exchanging large sums.
Seamless Integration
Another important factor to consider that will make the process even easier is the integration of your multi-currency account with accounting software. Some banks offer really advanced accounting software that will track all your exchanges, deposits, or withdrawals making the process even easier.
On top of that, you’ll be able to know everything that is happening with your money, all the fees you paid, the average exchange rate, and much more.
And as we know, budgeting is really important, and you cannot plan your expenses without the proper data.
Being able to know all of this data through your mobile phone will allow you to make better financial decisions.
Financial Freedom
Lastly, the ability to access your funds, exchange them, and do international transactions from every corner of the world without the fear of being gouged by fees is priceless! Banks offer 24/7 multi-currency accounts where you can manage your funds at any time.
So, if you are abroad and you like something to eat after a party, you don’t need to wait for an exchange office or bank to open. You can do that all through your phone, and that is financial freedom!
Final Words
The way we manage our funds has come a long way. Banks introduced new solutions that made our financial life simpler, and more efficient.
Now, it is worth mentioning that all of these advancements came in the last couple of years. This proves that the banking sector is heavily focused on technological advancements and who knows where will be in the next 5 years.