Holding Company applying for bank account
So, we've been having a hard time with traditional banks in opening business accounts. Primarily because even after explaining that the company is a holding company, and could not procure any form of sales or purchase contract to confirm activity. Because a holding company holds stocks of other company as its sole purpose. There is no other activity it is engaged in. There is no USP, there is no competitive advantage, there is no business plan.
My question is, with Neat, will it just end up as the same?
You can fill out our application at http://business.neat.hk/. We generally have a high acceptance rate, but cannot guarantee in advance whether we can open an account as we need to conduct due diligence on all businesses and customers that want to open an account with us.
In principle, we are able to open accounts for holding companies. We do ask in the signup form to provide details about your subsidiaries.
Neat Business was built for startups & SMEs, because we believe their needs are not met by traditional banks. One of the reasons it is difficult for young companies to open an account is that traditional banks have high costs for opening and maintaining an account and startups may not be profitable for these banks, the same may be the case for a holding company which does limited transactions.
As for Neat, we have been able to automate and digitize a large part of our KYC (Know Your Customer) process and have therefore been able to vastly reduce the costs of our compliance process. This means we are able to onboard and provide services to a wider range of companies.