Banking in Crown Dependencies

[alawrence (Anthony 🛩️)]

Following on from this topic: Really disappointed in Customer Service lately - #106 by urban

And acknowledging that Monzo’s stance on Isle of Man banking has previously been addressed:

Crown Dependencies

Just to re-light this one in 2019… Please would someone from the Monzo team explain whether the team are actively pursuing extending into the Channel Islands / IOM? As usual, we are unable to benefit from any of the exciting tech due to not being part of the EEA or the UK I would like to understand what the roadblocks are and what appetite, if any, the team has to enter into a dialogue with the powers that be to overcome them? I assume it is from the card issuers i.e. mastercard but then do n…

I started to look at how UK banks treat Isle of Mann (and other Crown dependencies). There’s a whole world of difference it seems:

• There’s no requirement to be regulated by the FSA
• This means there’s no FSCS, but they do have their own cover (up to £50,000). Interestingly, the scheme specifies a maximum amount of £200,000,000 in any 10 year period - how often do banks fail in the Isle of Mann?!

What other differences are there, and (specifically for anyone who resides there), are there any banks where you’re treated as a domestic customer, or are you always handled by the international arm of UK based banks?

If it’s always the international arm, does that mean you’re subject to specific restrictions on your accounts? I.e. I see that the Lloyds International account requires a minimum salary.

[admdly]

@alawrence

are you always handled by the international arm of UK based banks

Barclays appear to open accounts under Barclays Bank plc, which is the same company as the UK accounts, and offer the same types of account from a brief look. I’m not sure if that means they’re treated exactly the same as domestic customers, but it’s different from the other banks that seem to have a separate ‘international’ company operating in IoM.

[glasgow]

I think it varies by bank. Some UK based banks won’t allow IOM addresses. Some will and some will support them via their international arms. Will very much depend on how the bank is structured etc

NatWest Group run Isle of Man and coutts crown dependencies banks under their international LTD as does Santander

[gt94sss2]

@alawrence

Isle of Mann

A minor point but it’s Isle of Man - just so you don’t accidentally offend anyone

[Chapuys (Kevyn)]

My English based RBS Select Account is run by the private arm of RBS even though it is not a private account in the private arm of RBS.

Anomalies happen.

[alawrence (Anthony 🛩️)]

Thanks! Updated my other replies too - I blame working with someone with the surname Mann, in the past!

[urban]

Monzo appear willing to overlook the fact that some customers actually live outside the UK. Their only requirements are a UK address when opening the account, as that’s where the first card will be sent.

When I lived abroad, First Direct made me change my registered address with them (which I guess Monzo wouldn’t do).

[alawrence (Anthony 🛩️)]

Do you, as a customer, notice anything differ t in the experience you receive with each arm?

[SebH]

@Chapuys

My English based RBS Select Account is run by the private arm of RBS even though it is not a private account in the private arm of RBS.

Anomalies happen.

Was this Child & Co or Drummonds? They are part of RBS (Scotland) due both to historical reasons and legal structure.

The RBS structure is complicated and, technically, there is a Scottish side (RBS and subsidiaries) and an English side (NatWest) which aren’t run in a strictly geographically-limited sense so it’s easy to end up on the “wrong side of the fence” by accident.

You can live in England and open an account with RBS selecting a Scottish branch! It hasn’t mattered since they decided to cancel the Williams & Glyn project, and depends on odd things like which sortcode you use to open your account.

But the IoM operations are definitely all under Isle of Man Bank for ordinary customers. I think this is technically part of NatWest International, but looks to operate like normal RBS. Even the app is just re-skinned.