How to get a business bank account: the best online banks in Europe
Since you’ve got a company registered in one country but operating in another one(s), you’re not tied with the traditional banking system anymore. In recent years, online business banking has risen rapidly in Europe, and many entrepreneurs find it more convenient to use alternative providers of financial services.
Now there are multiple prominent banks based in Europe/ EEA zone that makes it a challenge to choose which one suits your needs the best. We did a comparative analysis of the main six online business bank accounts. In this article, we’ll share our key takeaways that help you to make the best choice and decide which business bank accounts to go for.
Advantages and One Disadvantage of Online Banks
The shift toward business banking with Fintech providers has introduced numerous benefits over traditional banks. These include lower fees, faster transactions, and greater convenience. Here's why a business bank account with Fintech providers is a better option:
Cost-efficiency: Online providers generally offer low fees for international transfers and more favorable exchange rates.
Speed: Unlike traditional banks, opening a business account with an online bank can be done in hours, not weeks.
User-friendly technology: Fintech companies often include robust apps and dashboards for seamless management of business accounts.
Banks based in Europe have strict compliance rules, ensuring secure and regulated financial operations. However, the lack of overdraft and loan access may require businesses to seek alternative funding sources despite having a reliable business bank account. Read the full comparison of traditional and online banks here.
Top 6 Fintech Providers in Europe
For the comparison we surveyed:
As long as low-cost fees and time of the opening of the account are the main advantages of online banks, we started from these indicators and then reviewed other tech- and client-friendly factors.
For a sample, we took fintech providers for a company registered in Estonian jurisdiction. If you’re considering company incorporation in Estonia, you can get the information from this article.
Timing and Pricing of Opening an Account in Online Bank
Basically, if it’s an emergency, you could direct your attention to the Revolut or Wise solutions. For Revolut, it requires a physical presence on your business in the country, where it is registered. In our sample, an entrepreneur would need to prove, that her/ his business is connected with Estonia.
If not, proceed to Wise. Regarding a compliance check, the information about shareholders is a must. Wise can ask you for some additional information and company documents. In case you incorporate your company in Estonia with Enty, we’ll add the required info on your Contol Panel.
To summarize, opening an account in Revolut and LHV would cost you nothing provided that your company has a presence in Estonia or you could once visit a bank in person accordingly. If you’re trying to reduce setup costs, consider Paysera or Wise.
It is not actually such expensive to open an account in Bankera or Verifo if you’re doing some low-risk business in some safe jurisdiction. If not, it would be worth paying more at the beginning to have secure transactions in the future.
To be loved and noted: a review of Top 6 online banks’ features
Further, we made cards with edges and pitfalls of each of the Top 6 Fintech providers presented in Estonia. Look through and find out which Fintech provider to choose using our tool.
Paysera
+
Low fees
Wide range of available countries
Rather straightforward verification
Multi-user accounts with separate limits
–
A mobile application is required
Additional verification of high-volume transactions is required
+
Many currencies available
Friendly interface
Rather easy and fast compliance check
–
Limits on card spending ~ €50000 per month
Limits on card emission for clients living out of EEA
Wise doesn’t work with ‘high risk’ businesses such as Finances, Crypto, Forex
+
Great product UI
Additional features for SMEs
Payments via links
–
Proving physical presence may be tough for an online company
The monthly subscription is more cost-efficient, when your company is medium-sized, rather than small
Bankera
+
Suitable for companies operating in high-risk industries
Suitable for founders from high-risk jurisdictions
–
The application fee will not be returned in most cases
It takes longer to stay in touch with the provider to complete the application
The license may be required to apply in the first place
Verifo
+
Suitable for high-risk companies
Careful compliance that allows demonstrating the willingness of the company to work in a regulated environment
–
It is not cost-efficient for low-risk companies
LHV
+
Suitable for Estonian businesses with a high volume of transactions
Well-connected with Estonian governmental services
–
The process of getting an account takes a lot of time
A board member of the company may need to visit Estonia in person
LHV works with clients, whose activities are directly connected with Estonia
Please, note also that every online bank has its list of banned countries. You can easily check the current list on their websites, for instance, Wise has it like this, or with a manager in the case of LHV.
And that’s it! Once you’ve opened your bank account, don’t forget to connect it to Enty to ease up management of your company!
Key Factors When Choosing an Online Bank for Your Business
Selecting the right online business account depends on your specific needs and circumstances. Consider these factors:
Transaction Volume: High-volume banking accounts may benefit from providers offering tailored plans like Revolut or Wise.
Jurisdiction Requirements: Some banks listed, such as LHV, cater specifically to companies with direct ties to Europe or specific countries like Estonia.
Risk Level: High-risk industries might opt for providers like Bankera or Verifo, which offer specialized compliance solutions.
What Makes a Good Bank Account?
When evaluating business bank accounts, look for these qualities to determine which one offers a better experience:
Flexibility: An online bank account should support multiple currencies and international transactions.
Accessibility: a business account should be easy to open and manage, even for startups.
Scalability: Features like multi-user business account or tailored subscription plans can accommodate growing businesses.
