Despite being around for a very long time, traditional banks have fallen out of favour with freelancers, and you cannot even blame them. Freelancing has moved beyond working with local clients to a global talent market where people now work for clients thousands of miles away, managing different currencies. Global freelancing has brought global needs, and traditional banking has, so far, not evolved to meet them. Here is why this shift from traditional banks to global accounts is happening.
Also read: Global accounts vs traditional banks: What remote workers should know
The truth is, traditional banks are more familiar with managing local transactions in their local currency and less often deal with international payments. Cross-border payments go through the SWIFT network and, sometimes, intermediary banks. Unlike local payments, international transactions are processed over several business days. For freelancers who receive frequent international payments, this traditional system can be inefficient, slow, and frustrating.
One of the biggest pain points for freelancers is the lack of control over currency conversion. Traditional banks usually convert foreign currency to local currency immediately at exchange rates that are less favourable than market rates. The freelancer doesn’t get a say in when or how the conversion happens. This essentially means that every time money comes in, it immediately loses some value. For freelancers who want to keep USD, EUR, or GBP as a hedge against inflation or wait for better exchange rates, this traditional setup just doesn’t cut it.
International payments through traditional banks usually involve several types of fees charged at different stages of the transaction. There may be incoming wire fees, intermediary bank deductions, and foreign exchange mark-ups applied. It gets even more frustrating that freelancers often cannot even predict how much they will actually receive. A client may send a fixed amount, but the final figure that arrives can be noticeably lower without a clear explanation.
Freelancing income is often unstable. This can make financial planning for many freelancers difficult. Waiting several days for an international payment makes this worse and can affect scheduled payments like rent, subscriptions, and business expenses. Unlike traditional banks, global accounts are designed to settle international payments faster. This helps freelancers access their income earlier and better manage their cash flow.
Many foreign clients, especially those based in the US or Europe, prefer to pay into local bank accounts (accounts in their own currency). Asking them to initiate international wire transfers to your local bank can feel inconvenient and, in some cases, unprofessional. Global accounts solve this problem by providing freelancers with banking details in major currencies, making it appear as if clients are making local transactions. This allows freelancers to receive payments as if they were based in the same country as their client, even while working remotely.
Freelancers often earn through platforms built with global payments in mind. Global account providers integrate more easily with these systems, ensuring you can withdraw your payout with ease. Payment solutions like Wise, Payoneer, and Grey are commonly supported by global freelancing platforms. On the other hand, traditional banks often struggle with integrating with these platforms.
Also read: How to switch from traditional banking to Grey for remote work payments
For freelancers in countries with volatile currencies or rising inflation, holding foreign currency is now more relevant than ever. Before now, holding foreign currency seemed exclusively for wealthy people. But with global accounts, you can easily keep EUR, GBP, and USD. It is a form of financial protection. Traditional banks often restrict this flexibility or impose stringent conditions on foreign currency accounts. Global accounts make it easier for freelancers to hold, manage, and use USD or EUR without unnecessary barriers.
Visiting a banking hall can be rather uncomfortable. Traditional banking still relies heavily on in-person visits, physical documents, and long verification processes. This feels out of place for freelancers who work entirely online and from their comfort spaces. Meanwhile, you can access global account services online with remote onboarding and verifications that can be completed in minutes rather than weeks. Avoiding repeated trips to a banking hall is not just convenient; it saves time that can be spent earning.
Also read: The best international bank accounts for freelancers and remote workers
Freelancers are not abandoning traditional banks because they are unsafe or irrelevant. They are leaving because the evolving global work environment requires financial tools that better meet their needs. Managing cross-border payments requires payment systems that are fast, flexible, affordable, and optimised for cross-border income. This is why Grey offers multi-currency accounts supporting USD, EUR, and GBP payments. This way, freelancers can receive their income at low and transparent fees, competitive rates, and swift payment processing. Grey also simplifies international payments with virtual cards that support direct payment in foreign currencies.
Get started on Grey today and download the app to manage your freelancing income with ease.
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