In recent years, there has been a major shift from traditional banking to digital banking options. This is because digital banking offers many advantages over traditional banking, such as 24/7 access to your account, lower fees, and the ability to send money internationally. If you're looking for the best banking options in Estonia for your business, the good news is that there are many great options available for you. These options not only enable you to run a business internationally but also help you to manage your finances smoothly and effectively.
What is digital banking and what are your options?
Some people may confuse ‘digital banking’ and ‘online banking’, thinking that they are the same thing. However, there is a difference between what these two terms refer to. Online banking refers to the accessibility of your bank through a simple device where you get all your banking details in one place. On the other hand, digital banking means you are using all the aspects of banking services with an addition of financial services to manage your everyday business finances.
There are now more banking options available than ever before. If you feel like your bank is too far away or too constrained by the limitations of traditional banking infarstructure, consider some of the digital banking options that are available to you.
Advantages of digital banking in Estonia
1. 24/7 access to your account: With digital banking, you can check your account balance, transfer money, and make payments anytime, anywhere. This is a major advantage over traditional banks, which typically have limited hours and are closed on weekends.
2. Lower fees: Digital banks tend to have lower fees than traditional banks because they don't have the same overhead costs. For example, you may be able to get away with paying no monthly maintenance fee with a digital bank.
3. The ability to send money internationally: If you need to send money to family or friends overseas, digital banks make this process much easier and cheaper than traditional banks. For example, TransferWise allows you to send money at the real exchange rate with no hidden fees.
4. Better interest rates: Because digital banks don't have the same overhead costs as traditional banks, they can offer better interest rates on savings accounts and loans.
5. Greater transparency: Digital banks are typically more transparent than traditional banks when it comes to fees and charges. It is more or less standard practice now for digital banks and payment platforms to provide a thorough pricing page that outlines all potential fees and charges so that there are no surprises down the line. If you don’t see this page, move on!
Which banks offer digital banking options in Estonia?
There are many digital banks to choose from in Estonia that offer digital banking options. This includes a set of traditional banks in Estonia as well as new banking service providers and payments platforms in the market.
Traditional Banks in Estonia
LHV Bank
Established in 1999, LHV Group offers brokerage services and portfolio management services. As part of the group's 2009 expansion, LHV Pank was established to provide retail and corporate banking products and services to individuals and businesses. It is the 4th largest bank in Estonia in terms of total assets and offers services like retail banking, business banking, private banking and leasing.
SEB Bank
SEB Pank is a part of SEB Group (Sweden). As a universal bank, SEB Bank provides retail, private, and corporate banking products and services. In addition to financial advisory services, SEB Pank offers short-term or long-term financing solutions, as well as current assets and liquidity management services. SEB Pank also provides pension plans and insurance.
Swedbank
In addition to accounts, mortgages, insurances, credit cards, loans, pensions and investments, Swedbank offers a wide range of financial services. It promotes financial literacy, entrepreneurship, and social participation through the development of the whole society.
Bank Service Providers: Alternate Options for Digital Banking in Estonia
Bank service providers are newer fintech companies in the industry that offer Estonian businesses a variety of financial services. Unlike traditional banks, these providers are more flexible and quick in providing business accounts, debit cards, low fees and fast payments. Additionally, these fintech solutions are more convenient, technologically advanced and can be managed entirely online.
Wise
Formerly known as TransferWise, Wise has been a leader in providing cheaper financial solutions than traditional banks. The platform allows you to run an international business in Estonia and move your money between 50+ currencies at the real exchange rate. You can also get a Wise’s multi-currency account, which is free to open and lets you hold and manage money in multiple currencies.
wamo
wamo is a rising player in the fintech industry that has recently been gaining popularity for their flexible financial services and ease in opening business accounts in Estonia. With an extensive set of features and low monthly fees, wamo enables business owners - especially non-residents of the EU and UK - to do cross-border business easily and affordably. wamo offers team finance management , physical and virtual debit cards, SEPA and international transactions and multi-currency accounts among other things.
Laine Redpath
Better than bank account in Estonia: wamo
While there are multiple benefits offered by digital and traditional banks, they simultaneously come with either hidden costs or stringent requirements that can sometimes make it difficult for new business owners or non-residents to open a business account in Estonia.
However, it is also important to note that, if you are unable to open a business account with any of the banks or financial service providers, you will not be eligible to run a business in Estonia. That’s where wamo has been making the process super easy.
Sinan Elver
Born out of the common challenges that businesses and non-residents face when trying to open a business bank account in Estonia, wamo has made the process as smooth as possible. wamo offers zero setup fees, low conversion rates, free SEPA transfers, free debit cards and competitive subscription plans. It’s possible to open a business account in just 10 minutes.
