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How is Your Mobile Bank Preparing for Brexit?

Brexit negotiations are currently underway, but the outcomes are far from certain. Goalposts are shifting, and MPs are sharply divided on how best to navigate a Brexit. It is imperative that your finances are in order well ahead of time, to ensure that financial disruptions don’t occur. Let’s take a look at three popular mobile banks and how they are preparing for Brexit:

How Monese is preparing for Brexit

Things are still up in the air regarding the UKs exit from the EU. Even if the UK fails to reach a negotiated settlement a.k.a. a no Brexit deal, clients of Monese will not be adversely affected. This mobile bank has established a newly regulated operation in Belgium, for customers outside the UK. For UK-based customers with GBP-denominated accounts and/or EUR-denominated accounts, all operations will fall under the jurisdiction of the FCA (Financial Conduct Authority) of the United Kingdom.

If localised services are provided vis-a-vis an EU entity, EU account numbers will be offered to Monese clients and direct debit payments will be available through the EUR account. For further information, clients are advised to consult the updated T&C of Monese regarding the implications of a Brexit and licensing and regulatory changes.

How Revolut is preparing for Brexit

The big question remains – will the UK negotiate a settlement before the Brexit deadline? In any event, Revolut is fully prepared for a no deal scenario. In 2018, Revolut established Revolut Payments UAB in Europe. This has full passporting permissions across the European Economic Area (EEA), regardless of the Brexit outcome. If a no deal Brexit occurs, EEA-based clients will be switched over to the European entity.

ID verification may need to be resubmitted for verification purposes. Acceptable documents include ID cards, passports, or drivers licenses. Customers will automatically be contacted by Revolut customer support agents, informing them of the need to resubmit verification. As noted, Brexit will impact UK-based businesses through the effect it will have on passporting permissions across EEA countries.

UK-based mobile banks may not be able to offer financial services to European customers. Regardless, all funds currently deposited with Revolut are safeguarded by European law. At the moment, it’s a wait-and-see game to determine what transitions may be taking place. Revolut has customers’ best interests at heart at all times, regardless of the track that Brexit negotiations take.

How N26 is preparing for Brexit

N26 has taken all necessary safeguards to protect the interests of its clients. UK-based customers of N26 will not be disrupted by Brexit proceedings, since this mobile bank remains fully licensed in the UK. Brexit deadline extensions, or deals will not affect the status of client accounts. The only notable difference will be how your money is protected by N26. If the UK leaves the EU with no deal in place, the Financial Services Compensation Scheme (FSCS) in the UK will protect your funds, as opposed to the German financial regulator, BaFin.

The Bank of England guarantees funds up to Β£85,000, while the German regulator protects funds up to €100,000, or GBP equivalent. UK citizens living in the EU will retain control over their N26 mobile bank account post Brexit, and clients will retain full use of their cards while abroad. For now, negotiations between the European Union and the UK continue in earnest, and N26 promises minimal disruption for its clients.

All in all, whether you are a UK citizen or an EU citizen using one of these mobile banks, you can rest assured that your best interests will be prioritised. Your funds are safe and secure, courtesy of UK and EU protections. These respected banks will keep you informed of any regulatory changes that may affect accounts. Minimal disruption and maximum customer satisfaction are guaranteed.

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