What to Expect from Corporate Banking in the Future – EMI
With the European banking world going through a period of change we are seeing the emergence of new competition in the market like non-banking finance businesses, Fintech companies, start-ups and existing large technology businesses entering the financial industry all offering alternative finance solutions to bank customers. These new alternatives are drawing customers away from traditional banks with options that most conventional banks don’t offer or are not able to offer to the same standard with their old systems. This presents a challenge to conventional European banks.
Current Challenges Facing Traditional European Banks
Traditional banks need to compete with the new contenders in the market by making heavy investments in technology, integrating their systems and going digital so that they can offer customers end-to-end solutions. If traditional banks succeed in making these changes they will be able to implement technical standards for harmonized reporting and conduct efficient liquidity management. Moving into the future banks have to step up their investment in security; once traditional banks are operating on mobile devices and applications they will face a new set of security challenges which must be met.
Changing the Traditional Banking Model with EMI
EMI may not be a new framework in the financial world but we have seen a dramatic increase in the number of EMI Fintech businesses and their profits in recent years.
EMI offers an alternative legal framework for the traditional banking model both in the business world and for personal accounts. Wherever you go these days you hear about businesses moving from traditional banking and opening an EMI account, this is particularly prevalent among companies which deal internationally.
Where are EMI Licenses Issued?
You will find several European countries taking an active role in helping start-up companies obtain an EMI license. Some of the leading countries in this area are Lithuania, Malta, the Czech Republic and Luxembourg.
If you would like further information feel free to contact us.
Why are Start-Ups and International Companies Choosing an EMI Account over Conventional Banking?
There are many reasons why some companies and start-ups prefer to go with an EMI account and in many ways the pros outnumber the cons when compared to traditional banking:
Additional Banking Services – The latest technology offers integration of additional banking options – EMI companies can have flexible core banking systems allowing them to include many more services with just a click on the keyboard; something traditional banks cannot offer (for example AML, KYC and alternative payment methods). The antiquated systems used by old traditional banks cannot cope with new technology and so cannot offer the latest automated services.
Convenience – With EMI your transactions can be made at any time, from any place, all you need is internet access.
Simplicity – Web designers strive to make their sites accessible to even the most inexperienced user. The EMI services are generally user-friendly and have interface features which are intuitive requiring no technical knowledge. If for any reason the user does not manage to make his transaction smoothly there is always a support team on hand to handle inquiries 24/7 through live chat, forums, email or FAQs.
Time Efficient – It is much faster to make a money transfer between virtual accounts than it is to send a wire transfer or a traditional postal transfer which can take up to several days. There is also the time saved by not having to physically get up, go to the bank or post office to make the transaction and wait in endless lines.
Basic Considerations when deciding whether to use EMI:
1. Do EMIs offer customers IBAN? Yes you can get an IBAN with some EMI.
2. What can I do with an EMI account? You can conduct the exact same transactions as you would have done with your conventional bank account – currency exchange, send funds, receive funds, issue debit cards, SEPA transfers etc.