EMIs and a Traditional Bank: What Is the Difference?

In today's rapidly evolving financial landscape, many businesses and individuals find themselves at a crossroads when choosing between traditional banks and Electronic Money Institutions (EMIs). While traditional banks have long been the cornerstone of financial services, EMIs are gaining popularity for their flexibility and modern approach to banking, especially in the digital age.

What is an EMI??

An Electronic Money Institution (EMI) is a financial service provider that operates primarily online. Unlike traditional banks, EMIs do not have physical branches, making them accessible from anywhere in the world via the Internet.?

Imagine you have a digital wallet on your phone that lets you do most things a bank would, like sending and receiving money or using a card to shop, but without ever needing to visit a bank building. That’s what an Electronic Money Institution (EMI) does—it’s like a bank that lives entirely online, making it easy for you to handle your money from anywhere in the world. EMIs are great for small businesses or freelancers who want simple, fast, and cheaper ways to manage their money.

Key Differences Between EMIs and Traditional Banks

1. Platform. EMIs operate exclusively online, offering their services through mobile apps and websites. Traditional banks, on the other hand, provide both online services and in-person assistance at physical branches.
2. Services Offered. While traditional banks offer a wide range of services, including loans, mortgages, and investment products, EMIs focus on core financial transactions such as money transfers, multi-currency accounts, and payment processing.
3. Account Setup. Opening an account with an EMI is generally quicker and more straightforward than the often lengthy and bureaucratic process required by traditional banks. With PayDo, the process takes about 48 hours.
4. Fees. Due to their lower operational costs, EMIs typically charge lower fees, particularly for international transactions. With their extensive branch networks and higher overheads, traditional banks may impose higher fees for certain services.
5. Currency Management. EMIs excel in managing multiple currencies within a single account, making them ideal for businesses with international operations. Traditional banks may offer similar services but often with higher fees and more restrictive policies.

Having trouble with traditional banks? Opening a business account takes way longer than it should??

Contact our experts and set up an account in about 48 hours. With our multicurrency IBAN and easy-to-use platform, you'll experience secure, cost-effective transfers. Please visit this article to learn more about the differences between EMIs and banks.