OFFSHORE XXI – Fintech account vs. retail banking

Yes, up to a certain level, a fintech account provides a solution, especially, when the „normal” commercial banks do not open a bank account for traditional offshore companies. It is obvious, that the lifetime of such offshore companies is over. Today, to implement a serious business transaction, with a company registered in BVI, Belize, or in Seychelles is pointless or even risky. However, according to the experience of the LAVECO Ltd. many of our clients want to use the „technologies” which were applicable 10-15 years ago, like a BVI company + bank account. Today, however, no banks all over the world, unfortunately, which will open a bank account for such companies.

There are plenty of fintech companies, especially in Eastern-Europe, still promoting account opening services for traditional offshore companies, without any restrictions of the payments and even with card possibilities, connected to the fintech account. According to the experience of LAVECO Ltd. and its clients, unfortunately, this solution is not as good, as promoted by the mentioned fintech companies. We have survived already the bankruptcy of such fintech companies when the clients lost the remaining balances on the account. Representatives of such fintech companies very often forget to inform the clients, that a fintech company is a normal ltd, having no banking license. There is no guaranteed amount of up to 100 000 EUR like in the case of banking institutions. Further, some other parts of the story: today, when such fintech companies are growing substantially, we have noticed, that the main goal for many of them is not a „fair” service provision to the clients, but just accumulating the money and disappearing with it. We know a case when owners of such a fintech company collected 50 million USD, and the client’s money were lost up to the single cent.

What is the solution? The solution is a very well-established corporate infrastructure with a traditional retail bank account opened with a reliable commercial bank. Ok, but where can we set up such a company relatively quickly by reasonable prices? We have already written a few times about Hungary. Now the Hungarian company can be registered remotely and we provide a solution for bank account opening as well. It can be implemented within 3-4 weeks and the costs are also tolerated. And another key important feature: the bank account for a newly registered Hungarian company can be opened in USD also. Of course, there are some details, which can be discussed personally, please contact us for more information.

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