Nikita Veremeev
30.07.2025 | 6 min read
Updated: 30.07.2025
# Digital Banks: What Are They and Can Businesses Trust Them in the EU, Asia, and Africa
Digital Bank – What It Is and How It Differs
In 2024, more than 70% of corporate clients in Europe and Asia have used digital bank services at least once, and the volume of international B2B payments through digital banks has exceeded $2 trillion – such data is published by McKinsey. But what lies behind this rapid growth? Why is digital banking becoming not just an alternative but often the only effective tool for international business? And the main question, can digital banks be trusted with corporate finances, compliance, and business scaling across different jurisdictions?
The world of banking technology is changing faster than ever. Digital banks are not just online banks but entire digital ecosystems integrated with SaaS solutions, open banking APIs, and digital signatures. At COREDO, we see that for international companies, a digital bank becomes a strategic partner capable of providing not only speed but also transparency, control, and compliance with regulatory requirements in the EU, Asia, and Africa.
Reading the article to the end means obtaining a practical guide on selecting, implementing, and safely using digital banks for your business, based on real cases and COREDO’s experience.
Types of Digital Banks: Neo, Challenger, Platform
In modern practice, there are three main models of digital banks:
- Neo-bank, a fully digital structure without physical branches, operating on its own or partner license. Example: N26 (Germany), Revolut (United Kingdom). For COREDO clients, a neo-bank often becomes an optimal choice for quickly opening multi-currency accounts and integration with digital platforms for B2B.
- Challenger bank, a digital bank that competes with traditional banks through innovative services and flexibility. Often has its own banking license and developed digital infrastructure. In COREDO cases, such banks are used for servicing international holding structures and startups.
- Platform bank, a digital bank that provides API interfaces for integration with ERP, CRM, and other corporate systems. This solution is chosen by companies for which automation of KYC/AML, electronic identification of beneficiaries, and a digital compliance officer are important.
Thus, the choice of a digital bank model directly depends on business tasks and the expected level of digital integration: further, we will explain how a digital bank works in practice.
Digital Bank: How It Works
Digital bank is based on the digital transformation of banking processes:
- API integration for business allows instant connectivity of banking services to ERP, accounting, and e-commerce platforms.
- Electronic documents and digital signatures ensure the legal significance of remote operations.
- Open banking (open banking API) provides the ability to manage accounts and transactions through third-party applications, increasing flexibility and transparency.
- Digital ecosystem of digital banks includes multi-currency accounts, digital wallets, KYC/AML automation, and SaaS solutions for banks.
COREDO’s practice confirms modern digital banks can provide a full cycle of business services – from legal entity registration to complex compliance and international transfers.
Benefits of Digital Banks for Business
The benefits of digital banks for business manifest not only in the speed and convenience of working with finances but also in a wide range of additional services that simplify business operations and open up new opportunities for companies of all scales. Below we will analyze how these advantages are implemented in practice, starting, for example, with the process of opening an account for an international company.
Let’s take a closer look at how exactly the account opening process becomes easier and more accessible thanks to digital solutions.
Opening an Account for an International Company
One of the key requests from COREDO clients is the quick opening of a business account in a digital bank in the EU or Asia. Unlike traditional banks, a digital bank offers:
- Remote verification and electronic identification (eID), the KYC process takes 1 to 3 days, and full digital client onboarding allows for opening a corporate account without visiting a branch.
- Accessibility for international companies and non-residents, including startups, IT companies, and e-commerce businesses, as confirmed by COREDO’s experience in registering legal entities through a digital bank in the Czech Republic, Estonia, Singapore, and the United Kingdom.
- Multi-currency accounts and digital wallets, which are particularly in demand for cross-border payments and currency operations.
Automation in Digital Banking: How to Scale?
A digital bank becomes a catalyst for business scaling:
- Integration with ERP and accounting systems allows automating financial processes, reducing manual labor costs, and increasing transparency.
- SaaS solutions and digital platforms for B2B enable rapid service connectivity, corporate card management, and tax reporting optimization.
- In COREDO cases, scaling business with digital banking was accompanied by an increase in ROI due to reduced compliance time and accelerated international transfers.
Transparency and Control of Operations
A digital bank provides:
- Instant currency operations and international transfers with transparent commissions and digital signatures.
- Open banking and electronic documents allow controlling all transactions in real-time, integrating data with ERP and CRM.
- KYC/AML automation reduces risks and accelerates compliance procedures.
Our experience at COREDO shows: the transparency and control provided by digital banks become critical for companies with distributed structures and international operations.
Security of Digital Banks and Risks
The security of digital banks and risks are becoming more relevant as more financial operations transition to the online environment. Today, digital banks face new challenges in data protection and cyber threat prevention, requiring the implementation of modern technologies and constant monitoring of potential vulnerabilities.
Cybersecurity in Digital Bank
The question of trust in digital banks is directly related to security:
- Cybersecurity in digital banking is based on biometric authentication, anti-fraud systems, and machine learning for AML.
- GDPR and data protection, digital banks in the EU and the United Kingdom are required to comply with the strictest standards for personal data storage and processing.
- Electronic signatures and digital identification provide legal force to remote operations.
COREDO has implemented projects where the introduction of digital banks reduced fraud incidents by 40% through the integration of anti-fraud systems and multi-factor authentication.
AML and Compliance in Digital Bank
A digital bank implements:
- Automation of KYC/AML – machine learning analyzes transactions, identifying suspicious operations in real-time.
- Digital compliance officer and digital identification of beneficiaries accelerate verification processes and reduce the risk of fines.
- Compliance in digital banking in the EU, Singapore, and Dubai is built on international FATF standards, as confirmed by COREDO’s practice of licensing cryptocurrency and payment companies.
Regulation of Digital Banks Worldwide
Regulatory requirements for digital banks differ by region:
- PSD2 is in effect in the EU, obliging banks to open APIs for third-party services and strengthen KYC/AML requirements.
- In Asia and Africa, regulatory sandboxes are actively used to test innovative fintech solutions under regulatory oversight.
- For non-residents and international companies, remote verification and electronic document requirements are of particular importance.
The solution developed by COREDO for clients in Singapore and Estonia considers the specifics of local regulators and facilitates faster registration of legal entities through a digital bank.
Open an Account in a Digital Bank for Business
Opening an account in a digital bank for business: it is not just a step towards modern service, but an opportunity to gain instant financial transaction access, automate processes, and simplify company management. Further, we will analyze how to open a corporate account in a digital bank and what steps your business will need.
How to Open a Corporate Account in a Digital Bank
COREDO’s practice shows that successfully opening a business account in a digital bank in the EU or Asia requires:
- Choosing the jurisdiction and digital bank with an appropriate license and the ability to serve non-residents.
- Gathering documents: statutory documents, beneficiary data, address confirmation, business plan.
- Undergoing remote verification and electronic identification (eID), most digital banks use video conferences, digital signatures, and biometric authentication.
- Completing an online application and digital onboarding: the automation of KYC/AML allows for completion within 1-3 days.
- Integrating the account with ERP and accounting for automating reporting and operations control.
Features of SEO for Startups and E-commerce
The digital bank becomes especially in demand for:
- Startups in Asia: minimal requirements for authorized capital, quick launch of multi-currency accounts, integration with SaaS platforms.
- IT companies and e-commerce, the ability to automate currency operations, use digital platforms for B2B, and integrate banking services with ERP and CRM.
- Holding structures, centralized control, transaction transparency, KYC/AML automation for subsidiaries.
The COREDO team has implemented projects for opening accounts for international holdings in the Czech Republic, Slovakia, and Singapore, where digital banks allowed for compliance cost reduction and operational speed increase.
Integration of Digital Bank with ERP and Accounting
Integration of a digital bank with corporate systems ensures:
- API integration for business – automatic data exchange between the bank and ERP, accounting, and tax services.
- Electronic documents and digital signatures, legally significant operations without paper document flow.
- Automation of tax reporting and currency operations, which are especially important for companies operating in multiple jurisdictions.
COREDO’s experience shows: integration of digital banks with business processes not only accelerates financial transactions but also enhances transparency for auditors and regulators.
Risks of Digital Banks and Ways to Mitigate Them
The risks of digital banks are becoming more relevant with the rapid technological advancements and the transition to online services. Ensuring sustainable operation and client trust requires timely identification and mitigation of key threats such as cyberattacks, fraud, and tech disruptions. Below we consider the key types of these risks and effective ways to minimize them.
Cyber Threats, Fraud, Disruptions
A digital bank, like any fintech service, is subject to several risks:
- Cyber threats and hacks: despite a high level of cybersecurity, attacks on digital banks are becoming more sophisticated.
- Fraud and phishing, attempts to compromise credentials through fake interfaces.
- Platform disruptions, technical issues can lead to temporary service unavailability.
In COREDO cases, KYC/AML automation and the implementation of biometric authentication helped reduce fraud levels and increased cybersecurity resilience.
How to Reduce Business Risks
For risk minimization, the COREDO team recommends:
- Checking licenses and regulation of the digital bank in the chosen jurisdiction.
- Using multi-factor authentication and anti-fraud systems.
- Automating compliance and KYC/AML, appointing a digital compliance officer.
- Keeping up with regulatory updates and using regulatory sandboxes to test new solutions.
- Integrating digital banks with corporate systems for transparency and control.
COREDO’s practice confirms: a systematic approach to security and compliance allows trusting digital banks even when working with large corporate clients.
Digital Banks for International Companies: Trends
Digital banks for international companies today create a new reality of financial services, actively implementing cutting-edge technologies and offering innovative solutions for global business. These trends are changing safety standards, management, and customer interaction, determining the industry’s competitiveness by 2025. Below we consider the key technologies that set the development vector – from open banking and AI to blockchain.
New Technologies: AI, Blockchain, Open Banking
The future of digital banks is defined by the implementation of:
- Artificial intelligence in banking services – compliance automation, risk prediction, service personalization.
- Blockchain in banking infrastructure – enhancing transparency, reducing costs of international transfers.
- Open banking and digital wallets, expanding the ecosystem of digital banks through third-party service integration.
COREDO actively implements AI and blockchain-based solutions for clients interested in AML automation and international settlements.
The Future of Digital Banking Regulation
- PSD2 in the EU sets standards of openness and security for all digital banks.
- Regulatory sandboxes in Asia and Africa allow for quick testing of innovative fintech products.
- GDPR and local data protection laws create new requirements for information storage and processing.
The digital bank market is becoming increasingly global, and regulation is becoming more transparent and technological.
The Effectiveness of Digital Banks for Business
Implementing a digital bank allows for:
- Reducing account maintenance and compliance costs by up to 40% (according to Accenture data).
- Accelerating international transfers and currency transactions.
- Improving transparency and manageability of financial flows through digital platforms for B2B and SaaS solutions.
COREDO clients report ROI growth in the first year after transitioning to digital banking, especially when scaling business into new jurisdictions.
Practical Recommendations for Business
Digital banks are not just alternatives to traditional financial institutions but strategic tools for international business, allowing for quick legal entity registration, compliance automation, and enhanced operational security. On the other hand, trust in digital banks should be built on thorough license checks, integration with corporate systems, and continuous risk monitoring.
Advantages and Risks of Digital Banks for Business
| Advantages of Digital Banks | Risks of Digital Banks | Practical Recommendations |
|---|---|---|
| Fast account opening, remote identification, multi-currency accounts, integration with ERP and accounting, KYC/AML automation, transparency of operations | Cyber threats, regulatory restrictions, complexity of reliability checking, possible disruptions, compliance requirements | Check licenses and regulations, use two-factor authentication, automate compliance, integrate digital banks with business processes, stay updated with regulatory changes |
COREDO’s Recommendations:
- Choose a digital bank considering the jurisdiction, license, and ability to serve international companies.
- Integrate banking services with ERP and accounting for automating financial processes.
- Implement multi-level data protection, KYC/AML automation, and digital beneficiary identification.
- Monitor regulatory changes and use regulatory sandboxes to test new fintech solutions.
- Consider the digital bank as a strategic partner for scaling and managing business in the EU, Asia, and Africa.
The practice of COREDO proves that a competent choice and implementation of digital banks is a path to growth, transparency, and security for international business.