Electronic Money Institution (EMI) Bank Accounts
1. What Is EMI?
Electronic Money Institutions (EMIs) is a type of financial institution that provides similar facilities as a bank.
The difference being EMIs do not provide loans and keeps customers’ funds at high street banks.
What is a high street bank?
High Street banks are major global banks, often with international presence and are world renown leaders in the financial sector, such as HSBC, Citibank and Standard Chartered.
Is it safe to keep funds at an Electronic Money Institution?
The regulatory authority in each country responsible for issuing the EMI’s license requires the financial institution to immediately transfer customer deposits into the banking partners’ “safe guarding account”
What is a safe guarding account?
Safeguarding, also known as Safekeeping, is a special type of account offered be high street banks only for financial institutions such as EMIs, for managing customer assets.
Customer funds kept in these type of accounts are separate from those of the EMI’s own funds and are completely safe in the event the EMI is no longer operational.
What happens to customer funds if the Electronic Money Institution closes down?
Client’s funds are not part of the EMI’s balance sheet. Therefore, if the EMI closes their operations, there is no risk of the customer losing their funds.
The safe guarding banks immediately transfers the customers funds back to the customers.
2. Why work with an Electronic Money Institution (EMI)?
Global Recognition
Major EMI industry leaders are often featured in articles on platforms such as Forbes, Yahoo Finance, Bloomberg and more.
Partnerships with major partners
EMIs offers additional features to boost your business, such as Mastercard/Visa debit card, UnionPay, AliPay, GooglePay, ApplePay and more.
Personal and Business Accounts
Most EMIs offer both types of accounts while others only offer one or the other.
Stable operation
When considering which financial institution to partner with for your business transactions, it is important to work with reputable partners.
Market leading EMIs often perform billion dollars worth of transactions annually.
Certain Electronic Money Institutions are also publicly listed on various stock markets and hold licenses in different countries around the globe.
International banking opportunities.
Electronic money institutions welcomes international companies and individuals who are not living in the country where the financial institution is located.
This means there are opportunities for foreign customers, both businesses and individuals to hold a bank account in a country that they did not live in, providing ease of transactions in facilitating international payment.
The number of countries offering bank accounts are expanding every day for non resident private clients as well as foreign comapnies.
Currently, it is possible obtain and iban bank account number in the following countries:
- Australia
- Austria
- Belize
- Canada
- Cyprus
- Finland
- France
- Greece
- Hong Kong
- Iraq
- Ireland
- Lithuania
- Malta
- Netherlands
- Spain
- Switzerland
- United Arab Emirates
- United Kingdom
- United States
3. Are all EMIs the same?
There are many factors to consider when it comes to selecting an EMI.
For example:
- Available of particular currencies. Most EMIs offer USD, GBP, EUR with the possibility of other major and minor currencies.
- Opportunity for bank account in different countries.
- Nationality/Jurisdiction/Business activity restrictions.
Availability of debit card (credit cards are not offered as EMIs do not loan funds and therefore, credit facilities are not available)
4. Where can I open an EMI account?
The concept of EMI was introduced in European countries, Asia, UK, US and Canada.
EMIs registered in these countries are often considered more stable, trust worthy and are preferred by customers compared to newly established EMIs.
Established EMIs at times expand their operations to new international jurisdictions and offers a level of familiarity and comfort for clients looking to work with a stable brand.
When considering which EMI is the best for opening an international corporate bank account for your company, It is important to understand that jurisdiction where the EMI is located, as certain jurisdictions are more reputable than others, due to strict regulations set by the country’s financial regulatory authority responsible for overseeing financial institutions being more stringent.
As the concept of electronic money institution. and Fintech (Financial Technology) companies become more popular and mainstream, additional jurisdictions will be offer financial institution to hold an EMI license and therefore, bank account in new countries in additional to ones mentioned previously.
5. Can an EMI account be opened in any country?
EMIs have different set of requirements and customer preference.
Based on the business model, requirements, and the Ultimate Beneficiary Owner (UBO) nationality, we will work with you to determine the best solution.
6. Is it better to open an EMI bank account or an offshore bank account?
Finance both types of financial institutions cater to different customers.
Advantages of EMI over traditional banks:
- Forward thinking – EMIs are more open to new types of businesses such as Cryptocurrency, Artificial Intelligence and High Risk Activities.
- Fast and easy process – EMIs utilize next generation tools such as Artificial Intelligence (AI) to expedite the application process, as well as monitoring transactions.
- Bank accounts in multiple countries – Unlike traditional banks where a bank account is only offered in the country of incorporation, certain EMIs offer accounts in multiple countries.
- Most EMIs often have $0 account balance requirement.
- Lower transaction fees – With low overheads, Electronic Money Institutions passes these savings to customers in the form of lower fees.
- Prompt customer service – As companies that operates in the digital space, EMIs pride themselves on delivery quick customer service to resolve issues quickly.
- Multiple payment protocols – SWIFT, SEPA, ACH, BACS
Disadvantages of EMI vs traditional banks
- Support is only be phone or email. Most EMIs do not have a retail location.
- No credit facility available for loans or credit cards.
- No access to investment platforms for stocks, mutual funds.
- No safety deposit box for physical deposits.
- No trade related documentary tools such as letter of credit, bank guarantee, manager cheque.
How BUH consulting can assist
Our team will work with you to understand your requirements, eligibility criteria and apply for your business and personal bank account with the most suitable banks and assign relationship managers from various that can onboard your account for your company.
Contact information
For a tailored solution, contact us to discuss about your requirements.
Email: – sam@buh-consulting.com
Phone: +971585086656
Whatsapp: +971585086656
Telegram: BUHConsultingAE