The future of the banking industry

Every business in today’s world is aware of the challenges that it is presented with, especially since business is mainly being done internationally. This shift from local to international business has occurred thanks to technology which during the past years has been making the world smaller every day that goes by.International business requires international bank accounts; the same applies for businesses who decide to operate from Malta. Although Malta is known for offering an excellent business environment and opportunities, in the past years, foreigners who wanted to open a bank account in Malta for their business were facing challenges as local banks started putting restrictions on nationalities and business activities. This led to more challenges for corporate services providers together with foreign investors who started questioning the future of the banking industry in Malta. This article will identify what led to such challenges and what’s the solution to foreign investors.What was the reason behind such restrictions?Since banks became stricter, major delays were happening when opening new bank accounts, asking for more proofs of existing businesses, which eventually led to delaying compliance approvals. Businesses were being asked to present more legitimate documentation such as matching profiles of customer with the business line, historic information and more documents related to due diligence. Even if businesses presented all requested material in a timely manner, there was no guarantee that all proof will lead to successfully opening a bank account. Moreover, the past few years also saw banks closing off many bank accounts of businesses that were already up and running.What’s the solution?Although banks have become more rigid, in the long run, they are doing this for the bank’s own safety, while also improving their quality of service to their clients. At the end of the day, all details showing transparency are essential for any business and the bank itself to keep healthy bank accounts alive.If you are a foreigner looking to open a bank account in Malta, we don’t want to dishearten you by this article. When there’s a will, there’s a way… and the way forward for a quicker and easier solution is by opting for licensed digital banks (electronic money institutions).