SBP Enables Remote Bank Account Opening For Freelancers
SBP, the Society of Business Process Professionals, has announced the launch of its new remote bank account opening service for freelancers. The new service is designed to make it easier for freelancers to open and manage their finances from anywhere in the world. SBP says that the new service is fast and easy to use, and that it provides users with all the information they need about their bank accounts and account balances.
In order to stimulate the growth of the Pakistani economy and improve the services offered to its citizens, the government has decided to open digital bank accounts for Pakistani freelancers. This move is in line with the Bank Policy Review Directive (BPRD) Circular No. 02 of 2021, which outlines the framework for Pakistani freelancers to meet the standards required to open digital bank accounts.
Freelancing has become one of the most popular ways to earn a living in recent years. According to a study by the NBER, there were over 25 million freelancers in the U.S. in 2016, up from 18 million in 2008. As more and more people turn to freelance as an option for careers, they are also looking for ways to improve their work-life balance. One way to do that is by using digital banking platforms that allow them to engage in their area of expertise without having to leave their home or office.
Also read.. Best bank for freelancers in Pakistan
Categories To Open Accounts Digitally
The new structure divides functional limits into four areas: deposit and withdrawal limits, wire transfer limits, and the paperwork needed to start an account.
Deposit and withdrawal limits are set by the institution, while wire transfer limits are determined by the financial institution. Both must adhere to regulations set by the Federal Reserve.
Before opening an account digitally, you will need to gather documentation such as your Social Security number or driver’s license number. You will also need to provide information on your bank account, such as its routing number and account number.
If you’re opening an account in person, you’ll need a government-issued photo ID and your bank statement. In addition, you’ll need to provide your name, address, phone number, and email address.
If any individual wants to register a freelancer digital account, they must be a Pakistani citizen and be familiar with the features of this type of digital account. The features of a freelancer digital account include:
- The currency allowed to be used PKR (all types of local currency) or FCY (foreign currency accounts are to be opened following the regulation of foreign exchange laws).
- A monthly limit of USD 5,000 or correspondent will be applied to all freelancer digital accounts. (debit & credit limits shall be applied separately)
- A cash withdrawal limit of PKR 500,000/- or equivalent per day is applicable.
- Self-declaration is required when looking to open a freelancer digital account.
How To Open A Freelancer Digital Account?
There is a list of customer information that is needed to open a digital account. Customers can use cell phone applications, bank portals or visit digital kiosks if they want to open a digital account.
- Full Name as per Computerized / Smart National Identity Card
- Father / Spouse Name as per Computerized/ Smart National Identity Card
- Computerized / Smart National Identity Card Number
- Date of Issuance of Computerized/ Smart National Identity Card
- Date of Birth
- Place of Birth
- Mother’s Maiden Name
- Contact Numbers: Mobile number (mandatory), Landline Number (optional)
- Personal eMail Address (optional)
- Current/ Mailing Address
- Purpose of Account
- Source of Income / Occupation as per Self-Declaration1.
Benefits For Freelancers To Open Accounts Remotely
Freelancers are finding new ways to interact cost-effectively with banks, employees, merchants and new markets for their products and services. One way is to use digital payment systems. Freelancers can use these systems to communicate with banks, pay employees, make purchases and accept payments from customers. The advantages of using digital payment systems for freelancers include speed and convenience. Freelancers can frequently access the systems from anywhere in the world. They don’t have to leave their work to visit a bank or make a purchase. Also, by using digital payment systems, freelancers can reduce the amount of time they spend on administrative tasks.
A customer onboarding framework allows freelancers to open bank accounts with little or no paperwork. This technology makes it easier for freelancers to find financial stability and improve their work-life balance. Additionally, the customer onboarding framework can help businesses streamline their operations by reducing the amount of paperwork they require from their freelance workforce.
Freelancers have longed for a way to have more control over their payments, and this new remote account opening framework could be the answer. Under this system, freelancers will be able to open an account with little paperwork and no travel required. This means that female freelancers can finally enjoy the benefits of control and transparency that come with having an account in their own name. The system also offers freelancers greater security by keeping their finances isolated from those of their clients.
The State Bank of Pakistan has urged banks to guarantee the decisions to launch or reject these accounts are to be made within two working days following the completion of all requirements, with customer support services available to assist customers. The framework should be put in place by December 31, 2021, according to the banking enterprises.
Tasawar Akram is A Freelancer and Social Media Guru