Bank or payment system?

In today’s world, it is impossible to imagine your life without a financial instrument in the form of a bank account or an account in the payment system, this rule applies both to individuals in everyday expenses and to companies in the conduct of business activities.

But, before answering the question of what to choose, a bank or a payment system, you must first understand what each instrument is.

A bank is a classic financial instrument that allows you, as a customer, to conduct your financial activities as an individual, an individual entrepreneur or as a company.

The bank is an official institution that complied with all government requirements when it was created, has a strict customer verification policy, a wide range of opportunities and services, including but not limited to: investment account, deposit account, loan, deposit guarantee and much more.

The payment system (Electronic money institution – EMI) is an electronic alternative to a traditional bank, it does not have an office or a branch where you can come and open an account, it will not give you credit or a loan. Strictly speaking, an EMI institution is an enterprise authorized by the government and licensed to issue electronic money. Compared to traditional and even direct banks, EMIs have many advantages: EMIs do not have to meet capital requirements, do not have to participate in deposit guarantee schemes and do not have to comply with the strict KYC/AML requirements that apply to banks.

This is your bank in the phone, which is always online, has more functions and at the same time a lower commission.

When choosing a financial instrument, you should answer the following questions:

 Reliability or convenience?

One of the biggest differences between a bank and a payment system is that a bank has a complex verification and protection system. To open an account, beneficiaries personally come to the bank branch and provide company documents (if the account is corporate) as well as their personal documents, while in the payment system you have the option of remote account opening, and the verification period as a client takes much less. resources and time.

Do you need a physical presence of the FI or is it better to save on commissions?

One of the few differences between the two financial institutions is the fact that EMIs operate almost exclusively online. Some of them have physical premises with open doors. Through this business practice, EMIs reduce their costs by not having to rent or maintain a physical location, which means they can often offer excellent banking conditions with lower fees.

There are not so many differences between a classic bank and a licensed payment system, but they still exist.

Each of these tools has its own limitations and work capabilities, to select the most effective and reliable tool for your needs – contact the specialists of our company, we will also help you correctly fill out all questionnaires, pass all verifications, prepare for their passage, including personal support .

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