How To Open A bank Account Online – Banking system in different countries varies so also account opening system which could either be manual or online account opening system.
Need to add that the international financial system has evolved over the years with visible changes here and there.
It is important to understand that the process involved on how to open a bank account online as well as other banking operations which could both be intricate and challenging still centres on fund mobilization.
Intricate View On How To Open A bank Account Online
Opening and closing of bank accounts for customers are tasks that a bank must approach with utmost care. Each of them carries a lot of legal implications. They can make a bank incur heavy losses resulting from legal actions against the bank.
The level of caution to be taken when opening or closing an account depends on the type of customer, type of account and account position at the given period. The fact remains that the bank must maintain the general rule which every bank must adhere to and also to act in good faith when opening and closing an account.
The English cheques act of the year 1957 states that every bank must act “in good faith and without negligence” this is to avoid being liable on the cheques collected for its customers.
How To Open A bank Account Online With A Commercial
Whenever an individual goes to a bank to have an account opened for him, the bank has the obligation of establishing the true identity and genuineness of the customer, this could be achieved through conducting simple enquiries.
The methods used by these banks are peculiar to these banks, more so, an in depth enquiries are usually carried out on current account or domiciliary accounts, also for savings account as well as time deposit account, enquiries might not be like the current account.
In bank practice, banks are held liable when they collect a cheque that is either stolen or forged. The bank also is liable to repay the true owner of the cheque. This bank practice was established between the year 1914 and 1915.
The purpose for proper inquiry before an account could be opened can be traced back to 1914 as earlier stated in this article. A stolen cheque was presented by a thief who claimed to be the payee and forged the payee’s endorsement. Due to improper records, the bank did not obtain references neither was the customer introduced to the bank by anybody.
Having hurriedly opened the account, the customer went ahead to request for special clearing of the cheque. The cheque was specially cleared and the customer collected the value of the cheque. This fraud was discovered and the true owner of the cheque sued the bank for conversion and it held that the bank was liable.
It is pertinent to note that a even when a bank obtains a reference, it still does not exonerate the bank from liability. If the person acting is unknown to the bank, the individual has or needs to be verified. If the verification of the individual is not made and the reference later proves to be forgery, the said bank will then be considered to have been negligent.
Meanwhile, in a situation where the referee was deceived by the customer, the bank be exempted from the liability. Money deposited in the bank becomes the banks liability, that is the reason why for a bank to avoid liability arising from the opening of account, the banks often do all they can to analyse the customer as if he or she is coming for a loan.
Generally speaking, it is easier to request from the customer to provide the name of his employers, other information that may be requested from you include the following;
- If customer is a married woman, she will be required to apply her median name and also the name of her husband (Mostly banks in African do this).
- It may also be needed to ask for her Husband’s employers.
- Provide information on your employers, etc
These a simple measures/techniques banks employ to avoid a situation where the bank guides against her paying in a stolen cheque payable to someone else in the guise that it was written in her maiden name. The information will also prevent her husband from paying in a cheque sten from his employers into his wife’s account since the husband’s employers are known.
Like I said earlier on this post, knowing how to open a bank account online varies according to the various types of customers and accounts.
However, knowing how to open a bank account online, I have specifically outlined steps to be taken (By the Customer and the Bank) when opening an account, read as listed below;
Steps 1 – Obtain an online application form from the bank where you want to open the account, meanwhile on the part of the bank, the bank will especially in a situation where the account is to be operated for more than one person, provide an application can still be in a bank standard application form.
Step 2 – Provide the necessary or required documents needed for the account while the bank obtains documents authorizing the opening of the account if it is a society or business account. Documents includes (i) Certificate of incorporation or registration of the business name (ii) Minutes extract or resolution passed by the executive committee council, or Board of Directors, (iii) Memorandum and articles of association, or constitution, (iv) Trading certificate as the case maybe, etc
Step 3 – The Bank will then make a preliminary enquiries and get two references (this will be applicable when the account is a current account).
Step 4 – The bank will then take a mandate from the customer. The mandates provides all the required information about the customer as well as stating how the account will be operated. The fact remains that banks still provides a standard mandate form that will be completed by the customer. The mandate form will have the following information; (i) Name, (ii) Type of account to opened, (iii) Address of the customer, (iv) Employer, (v) Name of spouse, (vi) Age, (vii) Spouse’s employer, (viii) Spouse’s employer, (ix) Specimen signature of those to serve as the signatories to the account, (x) How many to sign
Step 5 – Take specific instructions on the number of signatories required to sign cheques and other instruments. That’s is in a situation where more one person is to operate the account.
Step 6 – Issue a deposit or pay in slip to the customer with which he makes a deposit into the new account.
Step 7 – Open a ledge account for the customer, assign him an account number and enter the number in the banks open and close register.
The steps above clearly shows that knowing how to open a bank account online with any bank can still be hassle free provided that the information needed are readily available.