Opening a Banking Account: Navigating Requirements Across Regions

In today's global economy, understanding how to open a bank account in different regions is increasingly important. Whether you're an expat, digital nomad, or simply looking for more flexible banking options, this guide will help you navigate the banking landscape across Europe, Switzerland, and the United States, with special focus on neobanks that require minimal documentation.

General Banking Requirements: Region by Region

European Union

The EU maintains relatively standardized banking regulations across member states:

• Identity verification: Government-issued ID (passport or national ID card)
• Proof of address: Utility bill, rental agreement, or bank statement from the last 3 months
• Tax identification: Local tax ID number or equivalent
• Initial deposit: Varies by bank (€0-€100 typically)
• Residency requirements: Most traditional banks require EU residency, but neobanks often have more flexible policies

The EU's Anti-Money Laundering Directives require banks to verify your identity and source of funds, but implementation varies by country.

Switzerland

Switzerland has distinct banking regulations with traditionally stricter requirements:

• Identity verification: Passport or ID card
• Proof of address: Recent utility bill or similar document
• Tax documentation: Global tax residency information due to automatic exchange of information agreements
• Initial deposit: Often higher than EU banks (CHF 100-1000 for basic accounts)
• Source of funds: Documentation explaining the origin of substantial deposits
• In-person verification: Many Swiss banks still require in-person meetings to open accounts

Swiss banks must comply with FATCA for US citizens and CRS (Common Reporting Standard) globally.

United States

US banking requirements include:

• Identity verification: Government-issued photo ID (driver's license, passport)
• Social Security Number or Individual Taxpayer Identification Number
• Proof of address: Utility bill, lease agreement
• Initial deposit: Varies widely ($0-$100 typically)
• FATCA compliance: Mandatory reporting of foreign accounts for US citizens

Neobanks with Minimal Documentation Requirements

Neobanks (digital-only banks) often offer streamlined account opening processes. Here are some options known for minimal documentation requirements:

In Europe

1. Nickel (France & other EU countries) Only requires ID verificationNo proof of residence neededAvailable at tobacco shops in FranceNo credit check or income requirementsAccount can be opened in under 5 minutes
2. Wise (formerly TransferWise, available globally) Remote ID verification via appNo local address proof needed in many casesMulti-currency capabilitiesNo tax documentation required for basic accountsParticularly good for frequent travelers
3. Revolut (EEA countries, UK, and beyond) Digital verification processStandard accounts require minimal documentationNo proof of address needed for basic accounts in many countriesMinimal financial history requirements
4. N26 (EU & EEA) Video verification processDigital ID verificationBasic accounts have simplified requirementsLess stringent tax documentation than traditional banks

In Switzerland

1. Neon Swiss residence required but streamlined processDigital verification of IDLess demanding documentation than traditional Swiss banksNo Swiss tax attestation needed for basic accounts
2. YuhSimplified mobile onboardingBasic identity verificationLower documentation burden than legacy Swiss banksStill requires Swiss residency

In the United States

1. Chime No credit checkStandard ID verification but simplified processNo minimum balance requirementsSSN still required (as with all US financial institutions)
2. Cash App Banking Minimal documentation processBasic identity verificationSimplified account openingSSN required but minimal additional documentation

Tax Considerations When Opening Accounts

Different neobanks have varying approaches to tax reporting:

Banks That Require Full Tax Documentation

• Most traditional banks across all regions
• Swiss banks (even digital ones) due to international agreements
• Any bank offering investment products

Banks With Minimal Tax Requirements for Basic Accounts

• Nickel: Primarily focused on ID verification rather than tax status
• Wise: Basic accounts have minimal tax documentation requirements
• Revolut: Standard accounts have simplified requirements
• Cash App: Basic accounts involve minimal tax verification

Important Considerations

1. Anti-Money Laundering Compliance: All legitimate banks, even those with minimal documentation requirements, must comply with AML regulations. Expect increased documentation requests for larger transactions.
2. Limitations of Low-Documentation Accounts: Accounts opened with minimal documentation often have: Lower transaction limitsRestricted servicesPotentially higher fees for certain activities
3. Documentation May Increase Over Time: Banks may request additional documentation as your account activity grows or changes.
4. Tax Reporting Still Applies: Even if a bank doesn't request extensive tax documentation upfront, your accounts may still be reportable on your taxes depending on your citizenship and residency.

Conclusion

While neobanks like Nickel and Wise offer streamlined account opening processes with minimal documentation requirements, the exact experience varies based on your nationality, residency, and the specific services you need. These digital options provide excellent alternatives to traditional banking, especially for those seeking flexibility and simplicity.

Remember that while documentation requirements might be lighter with these providers, all legitimate financial institutions must comply with regulatory requirements. The difference is primarily in how efficiently they've designed their verification processes.

Whether you choose a traditional bank or a neobank, understanding the requirements in your region will help you select the option that best fits your needs while ensuring compliance with local regulations.