Can You Build a Truly Global Business Without a Local Bank?

Traditional banks tend to need the company to have a local office before an account can be created, which presents a series of legal, time-consuming problems. However, with fintech, it is possible to manage global accounts remotely, which is helpful for businesses that are looking to grow internationally.

Here's a quick look at global business accounts, getting a virtual bank account with IBAN and more, all so that global businesses can navigate abroad.

Understanding business accounts

Global business accounts are bank accounts that support companies working in many different countries. In contrast to a traditional account which is linked to just one country, global accounts give more flexibility when it comes to the ability to make payments, manage funds and to receive money in different currencies. To put it more clearly:

• Local business accounts are attached to one country and currency. They are useful to companies operating in a single market, but are limited when it comes to international transactions because of currency conversion fees.
• Regional business accounts are good for companies within a region like the European Union. They typically have multiple currencies, but will have limitations in terms of geography and regulations.
• Global business accounts are those that are accessible across geographic boundaries. This means the businesses can offer multi-currency options, payments for different locations and are fully compliant.

What does a global business account offer?

There are many top features for this type of bank account. For one, there is multi-currency support. This means that businesses are able to hold, send and receive funds in various currencies — there is no need to open a separate account in each country the business operates in. As mentioned, there are also cross-border capabilities. This means that international transactions become streamlined, offer fast processing times, and reduced fees, which is a major plus when compared to things like traditional wire transfers.

Finally, there is strong regulatory compliance. This means that all transactions follow global banking regulations ranging from anti-money laundering (AML) through to Know Your Customer (KYC) requirements. As such, a global account ensures legality and security across all transactions.

Local or global?

As it stands, while it used to be helpful, a local bank account is, in most cases, no longer needed when it comes to operating on a global scale. So yes, in short, it is indeed possible to operate on a global level without a local bank account.

These days, with the right banking partner, global companies can easily operate on the global scale, offering simplified payments and transactions, as well as operate multi-currency accounts. Of course, it's still necessary for businesses to do their due diligence when it comes to selecting which global account to use. Features like integration capabilities, compliance, international reach, agility and efficiency all needed to be considered. But these days, thanks to improved technology and fintech solutions, the traditional geographical barriers are being broken down to allow businesses to operate from around the world.

For businesses operating on a global scale, digitisation is a major aid, as is using a variety of different payment solutions to reach a wider customer base efficiently.