Why Does Bank Onboarding Take So Long?

If you’ve ever tried to open a bank account for your business—especially in a high-risk industry—you know the frustration. Weeks (or even months) can pass while you’re stuck in a never-ending loop of document requests and compliance checks. But why does it take so long? More importantly, what can you do to speed it up? The truth is, banks aren’t just being difficult. They have strict regulations to follow, especially when dealing with industries that fall under enhanced due diligence requirements. Understanding what banks are really looking for can make all the difference in streamlining your onboarding process.

3 Key Factors That Influence Bank Onboarding:

1. Clear Documentation: Get It Right the First Time

One of the biggest reasons for onboarding delays is incomplete or unclear documentation. Banks require a full financial profile of your business before they can approve an account. Missing or inconsistent information leads to back-and-forth communication, dragging out the process.

What banks expect:

• Well-organized corporate documents (registration certificates, shareholder details, company structure, etc.)
• Proof of address and identity for UBOs (Ultimate Beneficial Owners)
• Business model explanation, including revenue sources- don’t be stingy with the details and graphic illustrations.
• Regulatory licenses (if applicable)

Pro Tip: Double-check all documents before submission. Small mistakes—like mismatched addresses or unclear ownership structures—can cause significant delays.

2. Strong Compliance History: Show You’re a Low-Risk Client

Banks conduct rigorous AML (Anti-Money Laundering) and KYC (Know Your Customer) checks to ensure they’re not onboarding businesses involved in financial crime. If your compliance history is unclear or weak, expect scrutiny.

What banks look for:

• A well-documented AML/KYC policy, risk management framework, onboarding and retaining procedures
• Previous banking relationships with no compliance issues
• Transaction transparency (source of funds, expected payment flows)

Pro Tip: If your industry is considered high-risk (such as iGaming, crypto, or remittances), having a solid compliance framework in place is essential. Work with compliance experts to ensure your documentation meets regulatory expectations.

3. Tailored Solutions: High-Risk Businesses Need the Right Approach

Not all banks are willing to work with high-risk businesses. If you’re in industries like MSBs (Money Services Businesses), online gaming, or forex, traditional banks may hesitate due to perceived risks.

What can help?

• Partnering with specialists who understand your industry
• Seeking banks with a history of working with high-risk sectors
• Exploring alternative banking solutions such as virtual IBANs or EMI accounts

Pro Tip: If a traditional bank is causing long delays, explore alternatives like fintech banking solutions that specialize in high-risk businesses.

How Instamax Advisory Can Help

At Instamax Advisory, we specialize in helping businesses navigate banking and compliance hurdles. Whether you’re struggling with documentation, compliance requirements, or finding the right banking partner, our team provides solutions that work.

Our services include:

• Compliance and AML/KYC framework assistance
• Virtual IBAN issuance for seamless global transactions, backed by the expertise of industry titans in BaaS
• Guidance on securing operational banking accounts

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Ready to simplify your banking journey? Contact us today to find the right solution for your business info@instamax.io.