Complete Guide to Digital and Traditional Banking
Opening a business bank account in UAE would be among the most essential steps a new entrepreneur or an SME takes to operate professionally in this business hub of the globe. The growing digital banking alongside traditional banks allows for such simplified and flexible processes.
In this article, we can explain that both options for digital banking and traditional account opening processes are explored, ensuring you have a complete roadmap personalized to your own needs.
To Get a Business Bank Account, Why Opt for the UAE?
A well-regulated and globally linked banking system provides for the UAE:
- International Transactions: Multi-currency accounts and excellent networks.
- Compliance and Credibility: Each business account by UAE regulations ensures that one is well laid out to manage finances professionally.
- Banking Options: From traditional to intelligent digital solutions.
Digital Banking-The Future of Business Banking in the UAE
Digital banks in the United Arab Emirates, such as Wio Bank, RAKBank Digital, and Emirates NBD Digital Banking, have changed how companies manage their finances. Here are the key benefits:
Benefits of Digital Banking
- Apply Anywhere, Anytime: No physical branch visits—open an account online from the comfort of your office or home.
- Quick approvals: Account activation can happen within 2-3 days.
- Lower costs: This means that digital banks have little to no account maintenance fees.
- User-friendly interface: Advanced apps with features like transaction tracking, invoicing, and real-time analytics
- Enhanced security: verification and two-factor authentication meet data security needs.
Opening a digital business bank account: A step-by-step guide
Follow the instructions to set up your business account with leading digital banks in the UAE:
Step-by-step process:
1. Download the App: Install the app for your chosen bank, Wio Bank, or Emirates NBD Digital.
2. Prepare Needed Documents:
- Original identification and passport
- MOU and trade license
- Signatory documents such as Power of Attorney (POA) or Board Resolution.
3. Register: Register via your email ID and mobile number.
4. Choose Type of Account: Choose the option to open a business account.
5. Complete the Application Form: Fill in all the application details and upload the required documents.
6. Verify Your Identity: Complete biometric verification before scanning the face and submitting verification documents.
7. Final Review: The bank would then take 2-3 business days to apply to your application.
Congratulations! Once approved, your business account will be activated, and you can now start receiving payments and managing your transactions seamlessly.
Opening a Traditional Business Bank Account
Traditional banks are historically a trusted option for businesses and are known for having an extensive network of branches, custom services, and tailor-made financial solutions.
Key Considerations Regarding Traditional Bank Accounts
- Minimum Balance:
- Emirates NBD: AED 50,000
- ADCB: zero balance/ AED 50,000
- RAK Bank: AED 25,000
- Note: Non-compliance with the minimum balance maintenance is punishable by bank fees.
- Approval Time:
30-45 days from the time of submission, depending on internal review by the bank.
Documents Required for a Traditional Business Account
Prepare the documents listed below:
- Trade license and MOA
- Passport copies, visas, and UAE IDs of all shareholders
- CV of the Signatory
- Board Resolution or Power of Attorney (if applicable)
- Clearly Assigned Signatory to be included in the MOA
- Business plan, expected annual turnover, and monthly revenue forecasts
- Support documents – client invoices and agreements
Traditional Bank Account Opening Procedure from Start to Finish
1. Choose the Bank: Research the banks based on your needs as a business. Fees, services, and minimum balance are elements to consider.
2. Documents Required: Keep your documents clean, neat, up-to-date, and in order.
3. Submitting the Application:
- One way is to apply with a consultant to reduce errors and speed up the process.
- Another option is to approach the bank directly.
4. Due Diligence: The banks will check the application and conduct KYC and AML checks to analyze your business activity.
5. Account Activation: The final step. The bank will activate the account once it is approved.
Common Challenges and How to Overcome Them
Rejection of Applications: Most commonly, matters that involve errors in documentation result in rejected applications. Partner with experts, such as RAS Corporate Advisors, to rid your application of such mistakes.
High Minimum Balances: Banks should only be chosen if they have SME-friendly options like ADCB’s zero-balance account.
Lengthy Approval Times: If that merchant needs the funds fast, digital banks stand as alternatives.
Why Prefer RAS Corporate Advisors?
RAS Corporate Advisors facilitate the opening of business bank accounts in the UAE. We offer services that include:
- Evaluating bank alternatives best fitting your business needs
- Preparing your documentation
- Streamlining your application to avoid delays
- Offering tailored solutions for digital banking and traditional banking
Set for Your Business Bank Account Opening?
Whether you prefer speedy electronic banking or, more importantly, old-fashioned banking services, RAS Corporate Advisors has your back. Connect with us now to tame your account-opening process. Let us handle the turbulence while you focus on your growth.