Why Opening a Bank Account Is a Major Challenge

Since the reinforced application of international compliance rules (KYC/AML), opening a bank account has become a real test for any company. An LLP without clients, an LTD without an office, or a registered company without real economic substance will all struggle to convince a banker.

For fintechs, the logic is different: most of them agree to open an account quickly, but they do not always offer the same guarantees as a traditional bank. The choice of solution therefore depends less on a direct opposition than on a question of timing and strategy.

Traditional Banks: Credibility and Stability

Traditional banks embody security. A business account with HSBC in London, BNP Paribas in Paris, or UniCredit in Sofia offers immediate recognition. Clients, partners, and investors know they are dealing with a serious company.

However, this credibility comes at the price of patience and preparation. Banks want concrete proof: company articles of association, registration certificates, commercial contracts, business plan. They no longer open accounts for “mailbox” companies. A Bulgarian, Irish, or Dutch company will therefore have to demonstrate that it conducts real business activity, otherwise the banker will issue a polite refusal.

Fintechs: Speed and Flexibility

Faced with this administrative slowness, fintechs have disrupted the rules. With Revolut Business, Wise, or Payoneer, it is possible to open an account online in a few hours. These tools particularly appeal to e-commerce businesses and freelancers who need to quickly receive Stripe or PayPal payments, manage multiple currencies, and have European IBANs.

However, their strength is also their limitation. Fintechs do not always offer the full range of banking services (loans, guarantees, checks). Some tax authorities even refuse to consider them as “real” business accounts.

This is why they often constitute a starting solution, ideal for running business operations from day one, but insufficient in the long term.

Bank or Fintech: Do You Really Have to Choose?

In practice, most entrepreneurs combine both. They start with a fintech, which allows them to invoice quickly and demonstrate initial business activity. Then, once the company has clients, contracts, and credible substance, they approach a traditional bank.

A company in Bulgaria can thus start with Revolut to receive its first payments, before opening an account with a local bank. An English LTD will rely on Wise for multi-currency management, then on Barclays to strengthen its image with investors.

The debate is therefore not so much fintech versus traditional bank as fintech and traditional bank, in a logical sequence.

Best Practices for Structuring Your Bank Account Opening

Whatever the choice, the key remains preparation. A traditional bank as well as a fintech will require at minimum a valid passport, proof of address, the company’s articles of association, and a clear explanation of the business activity. The more transparent the company, the higher the chances of success.

VAT-related needs must also be anticipated. A company invoicing in Europe must be able to properly manage intra-community VAT. Fintechs make it easy to receive payments, but only a traditional bank will provide a sustainable foundation for tax management.

Conclusion and Recommendations

Opening a bank account is not a mere technical detail: it is the cornerstone of any international business activity.

• Fintechs are the ideal solution to start quickly, invoice your first clients, and manage multiple currencies.
• Traditional banks provide credibility, stability, and access to advanced financial services.
• The best strategy is to combine both, starting with a fintech then securing a traditional bank as soon as the company has sufficient economic substance.

At service-societe.com, we support our clients in this dual approach: immediate fintech opening, then establishment of a traditional bank account as soon as the conditions are met.