Comment by nicbou
10 months ago
To add to this, some people might be left out because companies are not financially incentivised to verify them.
In Germany, immigrants struggle to open a bank account because the banks require documents that they don't have (and that they can hardly get with a bank account). Russian, Iranian and Syrian citizens have a particularly hard time finding a bank that works for them. The most common video document verification system does not support some Indian passports, among others.
To banks, leaving these people out is a rational business decision. The same thing will happen to those deemed too risky or too much hassle by the internet's gatekeepers, but at a much bigger scale.
What is it about some Indian passports? Do they need to have a biometric chip to work? (just checked, and those were introduced in 2024)
Banks worldwide regularly refuse service to people who have US citizenship, so I don't think you're far off on that point.
If I remember correctly there are a dozen variants, and most of them lack a basic feature. I think it's either a signature, latin letters or biometric features.
US citizens also had issues due to FATCA requirements although it seems to have improved since they were introduced.
Is banking not deemed a right in Germany ? Aren't there "banks of last resort" ? Or does that right somehow not extend to non-EU refugees ?
Yes, sort of. You can always force it, but it takes time, resources and knowledge that recent immigrants lack. Usually they get funneled towards more immigrant-friendly banks.