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A study prepared by the Dubai Chamber of Commerce and Industry in collaboration with the Ministry of Economy, the Board of Projects and Small and Medium Enterprises and Roland Berger Company revealed the main challenges facing entrepreneurs and emerging companies. Start-ups have access to appropriate banking services, including facilitating the opening of a bank account, simple, transparent and timely procedures that meet the requirements of compliance with laws and regulations.
The study, RIR supports and promotes entrepreneurship in the UAE, launched by DCCI in collaboration with its strategic partners, showed that the opening of a bank account and the funding is a challenge for entrepreneurs.
Opening a bank account for startups can last up to 3 months The study suggests that the reasons for these challenges are a combination of two factors: the pressure on them banks to comply with increasingly stringent regulatory standards to combat illegal activities; Sh
Suggestions for Improvement
The study has highlighted important areas for improvement and development in this context, including the provision of basic bank accounts to meet emerging business needs such as (For example, a limit on transaction amounts or even local transfers only), which would help reduce compliance documents and speed up the process.
The study found that the availability of guidance Clear and simple details achieve transparency The procedures, timelines and documents required, as well as the provision of good bankers training and interaction, will make a real difference in entrepreneur banking.
Need to leverage technology to improve procedures and reduce costs by transferring banking, which will open up all accounts to the digital image, which will result in a significant change in customer experience and reduce costs, as well as the concerted efforts of various key stakeholders, including commercial banks
and the Central Bank, other system stakeholders, such as dealers will contribute to the formulation of a clear map of how to address problems and challenges globally by applying the highest standards and best practices in this area. The survey, which included surveys and interviews with start-ups, found that 65% of entrepreneurs rated the bank as their first challenge, while 61% said funding was the second challenge, while 53% said it was affordable. is the third challenge
The vast majority of entrepreneurs and emerging entrepreneurs have indicated that the process of opening a bank account takes at least a month, often much longer, which contrasts sharply with the timeframe for obtaining the approval, to which the banks refer. The United Arab Emirates on their websites.
She suggested that time meant money especially for entrepreneurs who suffer from a lack of liquidity while they are looking to derive their first profits from their business.
The founders of companies said that the common causes of these high levels of tension are incompatibilities on the required documents and insufficient advice from bankers when opening an account. The lack of knowledge of requirements and the lack of knowledge of these requirements is one of the main challenges for banks.
The second problem is the difficulty of the procedures due to insufficient guidelines, not to mention the lack of simplified detailed instructions including the procedures, time and documents required.)
In addition to the lack of clarity releases repeated requests, documents or audit procedures and the inability of bank staff to understand the status of entrepreneurs and their low efficiency (usually they do not have enough) of the l & # 39; interaction or knowledge), not to mention the grueling requirements for document verification, for example, the need for personal presence to verify the identity in place of "digital footprint".
Development Call
Brought up by entrepreneurs is very important, this should be a call to Latch A movement to radically improve the status quo. For example, in recent years, Hong Kong is increasingly imagining that its companies are struggling to open bank accounts, hurting Hong Kong's reputation as an attractive destination for Asian business. .
Moreover, emerging companies are not necessarily the most attractive, given the low initial volume associated with the ability of some startups to survive and grow.
This reduces the commercial desire of banks to attract and provide services to startups And finally, add to that
For example, UAE banks have different practices with respect to control procedures customers when opening business accounts, which indicates that banks may apply a stricter approach Minimum regulatory requirements
Procedures
L & # 39; study confirmed that banks must comply with regulatory requirements, such as customer knowledge policy, but within these constraints, they must do better in business banking. Emerging and contributing to regulators can play a role in providing additional advice to banks on the appropriate balance to be achieved in terms of customer inquiry.
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