This has inevitably led to an increasingly transient population with many people living and working outside their country of birth.

The option to work, live and retire abroad has become an attractive lifestyle choice, but an expatriate existence does throw up some unexpected complications.

Many financial institutions are beginning to recognise the need to provide this growing market with the products they require, and Lloyds TSB Offshore has chosen the Isle of Man as a base to launch a global assault on this 21st century phenomenon.

The company is a wholly owned subsidiary of Lloyds TSB Plc and, although officially registered in Jersey, the expatriate banking division is based in the Island.

The potential for this sector of its business can be graphically illustrated by the recent investment in its Douglas headquarters. Despite having offices as far afield as Hong Kong and Dubai, Lloyds have recently created two very senior roles on the Island. Chris Sutton was appointed the new global expatriate banking director in March and Mark Johnson was recruited from Bank of Ireland to head up the division's strategy and business development.

Lloyds has also created 50 jobs in its expat business since the start of the year and expects to have 500 in the Island by 2005.

Mr Sutton said: 'We have always had a significant presence on the Island. We had a choice of other offshore environments but there are many things which are more beneficial in the Isle of Man. It is cheaper than other locations, the local job market is better for the type of staff that we want, and we have a good presence in terms of property. The residential restrictions are also less onerous than places such as Jersey although the vast majority of staff recruited will be already Island based due to the potential expense of relocation packages.'

Lloyds has responded to an opportunity in the banking market by focusing resources into flexible solutions for the international resident. Its products are aimed at a core market of UK ex-pats, but they have a strong presence among foreign nationals as well.

Mr Johnson said: 'From a global perspective the British banks are probably the biggest and strongest players in expatriate banking, we are one of the only triple A-rated banks in the market. Japanese expats are more confident with a British-linked bank and there is an element of safety and security. Foreign nationals are seeing that the underlying core products and services that we offer are attractive.'

Mr Johnson said the expatriate profile was changing and offshore banking was becoming a normal process for more people rather than synonymous with the stereotypical image of a tax haven.

'Historically the offshore financial industry was predicated on people's tax positions; what we now see is that it is actually being focused on products and services and the demand is growing significantly. When people move around a lot more, that tends to break down into different segments such as the retirement market.

'The challenge is how you respond to the opportunity since we want to become the "Lloyds TSB international personal banking service". This involves tailoring our service a lot more to people who are living and working internationally. They may spend their working life in Africa and the Middle East and end up retiring to Spain,' he said.

The business is based around providing the services and expert support that becomes necessary in a foreign environment. One of its selling points, is the ability to provide currency accounts to individuals in euros, dollars, sterling and several other currencies. Access to a network of global contacts and tax advice is another benefit.

Mr Sutton said: 'We have a very strong technical banking arm which is au fait with people transferring money across borders. We also have expertise in dealing with people in other parts of the world. If you are getting paid in dollars or euros you can draw off accounts in that currency and get a cash card for each. With the development of Europe we will expect to see customers holding a euro account all the time as a matter of course.'

The recent takeover bid by Banco Santander Central Hispano for Abbey National is an example of European influence. Investors who may find themselves with shares valued in euros on the Spanish stock market will find a euro account useful to negate currency exchange risks.

Exponential growth in the expatriate market should secure a significant success story for Lloyds and reward its bold investment policy. The Island should also benefit as the headquarters of a global operation. Mr Sutton is confident that the partnership will continue to flourish and not just for financial reasons.

'As I am from Barnsley, my colleagues over in the UK assured me I would prefer the Isle of Man to Jersey as it has a more northern feel to it.'