Just wondered why opening a business bank account, at least in uk, is quite lengthy. I thought it would of been easier, if the individual is only share holder and company is registered under Ltd as standard.
Not referring to individual case. Just in general really.
Any reasons to this?
My only guess is that - are business accounts used with fraud a lot? Doesn’t make sense to me as people who deal with fraud surely wouldn’t even have a business bank account in first place.
Thanks.
Hi @tom_44
There are certain rules and regulations around opening a bank account, including checks known as “KYC Checks” (Know Your Customer). These are part of fraud prevention and anti-money laundering checks which they have to carry out by law.
I do know what you mean however having experienced this first hand, but there are several factors that play a part in this, including whether you already have an account with that bank, the type of business you operate, etc.
Some banks have adopted technology better than others too. The challenger banks, for example, manage to do all this in their own app and are usually fairly quick. The high street banks may opt for you to call into a branch in some cases, which adds a bit of a delay.
I do believe this process is being completed faster, but for me personally, it’s interesting to see how the banks compare and compete in areas such as this.
I see ok thanks. That makes sense now. Part of it as scammers need to pose as real businesses, so banks have to go over and above to check all this stuff.
Thanks.
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