Why Is It So Difficult to Set Up a Corporate Bank Account?

Mark McCormick
March 2, 2022

Prior to launching Capital International Bank, our team underwent a lengthy research process which involved talking to clients all over the world about what they would like to see in a banking provider. Our aim was to understand their challenges with regards to sourcing banking solutions, as well as their experiences as corporate customers.

We discovered that typically, opening a corporate bank account can be a very long-winded, labour intensive, and sometimes frustrating process for corporate clients. We found that the most common pain points are:

1. Struggling to find a corporate banking solution with a regulated ‘bank’.

2. Filling in endless forms and sending off mounds of paperwork only to then be declined for an account aka ‘the slow no’.

3. An onerous onboarding process that takes weeks or even months.

4. Outdated and clunky banking technology.

Having listened to our potential clients, we used the above four pain points to draw up the blueprints for our own banking solution. Let’s now explore how opening an Isle of Man bank account with Capital International Bank can help to overcome these obstacles.

1. Struggling to find a corporate banking solution with a regulated “bank”:

Capital International Bank is the first ever bank to be licensed under the Isle of Man’s Class 1(2) Alternative Banking Regime. Its services are aimed at corporate clients and its licence precludes retail customers. 

The Isle of Man operates as an offshore Category C rated jurisdiction alongside the likes of Jersey and Guernsey and is home to several large and well-known financial institutions. Capital International Bank is regulated by the Isle of Man FSA. It is important to note that Capital International Bank operates as a fully licensed bank and not an Electronic Money Institution (EMI). The advantage of this is a bank account in your own name and not a segregated account. Further to this, banks are usually licensed by their local regulator and there is no need to remit funds to a ‘main’ account for further credit to an account reference.

2. ‘The slow no’ - Filling in endless forms and sending off mounds of paperwork only to then be declined:

Our corporate banking solution is primarily digital and within 200 seconds of beginning the pre-application, you will gather three key pieces of information:

  • Whether we are able to take on your business (this ensures you do not waste time on completing a full application).
  • How long the bank account will take to open (3-5 working days for a standard risk account and 7-10 working days for a higher risk account).
  • The costs associated with the account. 

3. The corporate banking onboarding process taking weeks or even months

We understand the needs of corporate clients and understand that the corporate banking onboarding process can be very time consuming with a lot of back-and-forth around documentation. Our digital banking platform, VELTA, allows for the entire application to be completed online with no requirement for paper application forms or posting paperwork to our offices.

Although our offering is digital, we ensure that you are guided through the onboarding journey. We make sure that you have all the necessary information and feel comfortable to submit the correct documentation first time round.

4. Outdated and clunky technology

Clients have high standards when it comes to technology and in today’s digital world, slow and clunky systems will simply not be tolerated by paying users. 

Based on other great experiences they receive online, clients have come to expect easy to use apps and instant processing from any service they sign up to. It’s known as the “Amazon effect” and it's driving significant digital transformation in finance. Able to cater to these high expectations, Fintech organisations have managed to cause massive disruption in the banking industry over the last 5 years.

Built from scratch by our in-house development team, Capital International Bank offers clients a modern and easy to use digital platform specifically designed around the needs of corporates. From completing applications and transacting foreign exchange to remitting payments through the platform, Capital International Bank’s technology makes life a lot easier for a range of industries including trading companies, eGaming and Corporate / Trust Service Providers.

We’re always listening….

Capital International Bank is continuously being enhanced, with ongoing improvements set out in a schedule of frequent releases. In order to determine future changes, the Group launched a ‘Voice of the Client Forum’ which monitors client feedback and suggested improvements, analyses trends in banking and uses this information to implement change.

With an ‘off the shelf’ banking package, other providers are restricted by the system owners and their willingness to update the technology. Capital International Bank however was built in-house and as such, we’re able to make improvements in order to satisfy the clients that utilise the service day-in, day-out to ensure that our technology remains ahead of the curve.

If you’d like to find out more about our corporate banking service click here.

Please note: Capital International Bank Limited is a member of the Capital International Group and is licensed by the Isle of Man Financial Services Authority for deposit taking activities.

The Class 1(2) Licence under which Capital International Bank operates precludes retail clients. Deposits are not covered by the Isle of Man Depositors’ Compensation Scheme and terms and conditions apply.

Disclaimer: The views, thoughts and opinions expressed within this article are those of the author, and not those of any company within the Capital International Group (CIG) and as such are neither given nor endorsed by CIG. Information in this article does not constitute investment advice or an offer or an invitation by or on behalf of any company within the Capital International Group of companies to buy or sell any product or security or to make a bank deposit.

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