EMI Versus Traditional Banks

February 4, 2021

Commercial banks engage in various financial services, such as issuing checking & savings accounts, currency exchange, remittances & payments, loans & mortgages, and wealth management & trading securities. An EMI however, can provide a more specialized services traditionally provided by a commercial bank can, excluding for the issuance of debt and trading securities.

 Many new regulatory frameworks have emerged in recent years and laid the path for new payment service business models. Particularly in Europe, the regulations enable innovative business models to serve niche markets that traditional banks may not find commercially viable or within their traditional reserved risk appetite.

Some EMIs cater to expat communities who want low-cost foreign exchange; others target low-turnover freelancers. Wallter® Better Payment Solutions provide services to businesses and jurisdictions which were rejected by the traditional brick and mortar commercial banks due to enhance due diligence requirements or other intense compliance requirements which traditional banks cannot allocate adequate manpower to .

EMI business models ability to examine more complex ownership structures

Besides the differences in the scope of services offered by traditional banks and EMIs, as mentioned above, the business models also vary broadly.

For banks the payments and remittances offer a lower profit margin than other more profitable services. Meanwhile, companies with a more complex ownership structures (i.e. multiple or foreign shareholders, certain jurisdictions etc.) pose a much higher compliance burden. This compliance burden combined with the already increasing regulatory requirements doesn’t allow the bank to manage a flow of enhance due diligence and extra checks.

EMIs such as Wallter® Better Payment Solutions based their business model to include enhanced due diligence customer onboarding, stricter compliance and monitoring and more personal operations to be flexible, technology oriented and user friendly interface designed for these customers. Wallter’s expertise in compliance combined with a state-of-the-art technology and clear AML/KYC procedures allows Wallter® to provide efficient services while maintaining the highest standard of compliance requirements and remaining cost efficient.

 

Wallter®’s efficient compliance, automated monitoring combined with using our proprietary artificial intelligence technology allows us to address the processing of payments, quicker, smoother and more compliance efficient and requesting additional documents and clarification from our clients  .

European EMIs offer more than offshore banks

Merchants who are subject to regulatory EU environment will admit that the current regulatory atmosphere requires them to have stricter policies and procedures when handling client’s funds. Such merchants including gaming, gambling, FX or cryptocurrency merchants will admit that opening and maintaining a client’s fund account in a EU financial institution is becoming to be a harder and harder task.

 

Suppose your firm operates in the online trading, gaming, gambling or cryptocurrency sector. In that case, you may already know that legacy compliance departments in traditional banks are not equipped to deal with mass payments and more flexible flows of funds.

 

As a last resort, many companies go for the option of cooperating with offshore banks. The major downside of offshore banking institutions is they often lack robust and efficient technology, require correspondent banks, involve too many manual processes, and are subject to scrutiny from other commercial banks or regulatory bodies. Therefore, they are incompatible with fast-paced and modern online businesses and also don’t always offer the currency that the company requires thus increasing currency exchange costs..

 

Wallter® - Better Payment Solution is regulated by BOL under the Central European Bank regulations, directives and supervising adhering to European regulatory and mainly to high standards or client’s safeguarding of funds which are all held at the central bank. Wallter® group of companies holds several licenses in the UK and Singapore which allows us to offer complimentary services and multiple jurisdictions and markets allowing our merchants/corporations to transact smoothly, quickly and more efficient. Your own dedicated SEPA IBAN sending and receiving euro payments, send and receive approx. 100 currencies via the SWIFT network, keep money in a multi-currency payment account, and issue various prepaid cards with limits up to €100,000 per month.

Wallter® - Tailor Made Solution

Wallter® thrives to provide tailor made EMI solution for our client, offering compelling solutions for companies with involved ownership companies or companies holding client’s funds securely. we provide services in complex situations, which require a more hands on compliance approach, details, planning and design. We’ve chosen a sector where we can confidently add significant value, which is one of the areas where we thrive.

Designated IBAN Accounts

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