e-Wallet vs Retail Banking

If you are setting up an online business you will need to open a bank account. However, opening a bank account for your e-business may be very frustrating experience. 

Opening an account with a retail (high street) bank for my e-Business 

All retail banks nowadays are under pressure to check their potential clients thoroughly before they become clients.

For example:
Most Singaporean banks will open a bank account for a Singapore company relatively easily, provided the client comes to Singapore. There are some banks however, that will open a bank account remotely due to current travel restrictions. Our sister company can assist you with this.

When it comes to non-Singapore companies, the situation is quite different and requires more paperwork and preparation as some banks will need to see that the company has already started business. Some will also put more importance on who the beneficial owners are and will need very detailed personal documentation. Some will put more importance on the links to Singapore e.g. trade in Singapore or physic presence in Singapore.

In other countries, banks will ask for a lot of personal information even if you are setting up a corporate bank account. For example they will want your personal bank statements going back 6 months and some banks want to know exactly who you are going to be doing business with (with names and addresses) even if the company is completely new. Clearly, this is a nonsense in the case of online sales where you have absolutely no idea who your customers will be until they press 'Buy Now' button.

Opening an e-Wallet for my e-Business

An easier option is an e-wallet account as the process tends to be faster and less bureaucratic however the frustration element may come afterwards if you choose a wrong e-wallet for your type of business e.g. some do not accept certain activities and/or transfers from certain countries and we are not talking about sanctioned countries. Some will open a bank account but will not issue you with a debit card due to your residency.

For example:
Many people may have heard of Revolut (a UK based e-Wallet). They way they present themselves it seems that nothing could be easier than opening a bank account with them. However, when it comes to details and especially the corporate accounts, they have a list of incorporation countries they do not accept, as well as the list of countries where the beneficial owner/director must reside - otherwise they are unable to open an account. When do you find this out? The answer is "too late" i.e. after you have started the application, completed it on-line only to be told that your company or your residency is in the wrong country resulting in a complete waste of your time. You should also be aware that e-Wallet / FinTech companies are highly automated with 'bots' replying to most emails. A personal reply is rare with a few honourable exceptions (will will tell you about these).

Once we know your business, the countries you are dealing with and some other details, we will be able to recommend the most suitable bank or e-wallet or both.

Important note. TMS Consultants provides a consultancy service to recommend the most suitable banking service, it does not assist with opening accounts. For account opening service please visit international-formations.com