The Future of Student Banking in the UK:
Financial Management Tools for
International Students

Life of an international student comes with many challenges, decisions and exciting moments. Besides colleges, student accommodation, food and other basic things, have you ever wondered how you would maintain finances living abroad?

It is not like using the same bank account as you had in your home country. There are various aspects an international student has to figure out for financial management including student banking. Before you move to the UK, you must know about finances, banks, exchange rates and more. So, to reduce your stress, we have compiled all the necessary details about student banking in the UK. So, let’s explore.

Demand for New Financial Tools

As the UK continues to be the chosen one for higher studies, the demand for student banking is increasing. Adjusting to the new culture, education system and student housing, managing finances can be easy. The market is growing by the day and innovating ways for international students to have everything sorted before they move.

Understand Student Banking in the UK

There are plenty of ways to manage finances effectively as an international student. Similar to every country, there are two kinds of bank accounts available for students in the UK.

● Savings Account:  Ideal for long-term students, these accounts are designed to save money and earn good interest.

● Current Account:  This kind of account is ideal for daily transfers that come with debit cards and other bank facilities.

Simply put, the banking industry is witnessing a surge in technology over a few years. From mobile banking to AI-driven budgeting, banks across the world are accepting the change for a better future.

Documentation

The process of opening a bank account remains the same but now you can do it from your couch. If you wish to apply, you can visit the bank’s website or bank with the following necessary documents:

● National ID or Passport:  The original passport and national ID from your home country are necessary as proof of residence.

● University Acceptance Letter:  An acceptance letter is required to prove you will be moving here for studies

● Student Visa

● Proof of Address:  You have to give proof of address of current residence through rent agreement, electricity, heat or water bill.

Process

The process to apply for a bank account is quite simple in the UK. The first thing you should do is to identify which bank to go with. Further, you can either apply online or visit the bank to open the account manually. Then submit all the necessary documents and wait for the bank to activate your account. Once activated, you can use the bank account the same way you used to do back home.

Top UK Banks for International Students

Every bank has its features. Some offer great interest while some have zero charges on facilities. Some of the top UK banks include:

Great for easy banking & Interest-Free overdrafts

Plenty of rewards for opening an account

Smooth mobile banking features

Gives free Totum cards and easy banking

Offer 16-25 Railcards to students for free.

Financial Management Tools for International Students

With rising technology and international students being tech savvy, the new-age financial management tools are really easy to use. So, here are some key financial tools you can use as an international student:

● Bank Accounts and Cards

The process of opening a new bank account is a little time-consuming process in the UK. But many online banks offer fee-free international bank set-up, transactions and more. Some of the popular online banks used by international students are Starling Bank, Kroo, Chase, TransferWise and Monzo.

 

● Budgeting Applications

Being an international student, creating a budget every month is a to-do task. From handling student apartments to daily costs, everything has to be done within a budget. This helps in avoiding unnecessary expenses, tracking spending and monitoring income. Mint, Monzo and YNAB are a few budgeting applications you can explore.

● Currency Conversion Tools

Every country has different currencies. For instance, the UK has the pound sterling or GBP as their currency while India has the Rupee. Once you become an international student, currency conversion tools help in manage daily expenses. There are applications like Revolut or XE Currency Convertor which helps in offering you real-time conversions and exchange rates.

● Credit Building Tools

Every bank assesses the credit history of a person before granting of loan or any other facility. This means establishing a credit history is necessary for international students. You may not have a UK credit history but you can build one for yourself. There are applications such as LOQBOX or Experian Boost that allow students to build credit scores. As a result, these applications track your regular bill payments, savings and more.

● AI Financial Tools

AI and machine learning are everywhere. This means AI can also help you build a financial plan that caters to your income and expenses. Cleo and Plum are the top most used applications by international students for getting real insights on expenses with the least effort.

● Student Accommodation

International students often face difficulties in finding housing. There are websites like Uninist or Student Tenant that offer affordable and flexible student accommodation. Consequently, they focus on helping students to find the right place to live within a budget.

● Student Deals and Discounts

Living abroad as an international student calls for great measures in finances. From student housing to high-end stores, every business offers student discounts in the UK. For instance, UNiDays and Student Beans offer discounts on clothing, student accommodation, electronics and more.  We know managing finance can be overwhelming sometimes but with great finance management tools, you can easily manage finances. As a result, you can focus more on studies than finances with the above-mentioned applications and tools.