Austria’s Banking Environment

Austria's Banking EnvironmentIn Austria the there are over 200 banking institutions that offer a wide range of financial services. Due to this huge number banks in Austria, the banking environment is characterized by a significant level of competition.

To counter these competition banks have local and overseas correspondents who are mandated to market the banks’ products and services as a way of expanding their specific bank market share.

Opening an account

To open a bank account in Austria a foreigner should have the either or combination of the following documents:

  • A passport
  • Student ID card
  • Residence registration form
  • Employment details
  • Proof of residence in Austria

Austrian banks’ products

In general, banks in Austria offer a standard set of services and products under the any form of bank accounts.
These types of accounts include:

  • Current accounts
  • Debit accounts
  • Savings accounts

Notably, most citizens of Austria prefer savings accounts among all these types. This is based on the fact that this kind of account provide fair return on savings, in average 14% by most of the banks.

It is also worth to note, that most banks in Austria will not allow one to operate on saving account unless they can prove that he has been working for a period of not less than three months.

Online banking

In the recent years, most of the banks in Austria have adopted online banking systems. Most banks also offer debit or credit cards in any form. This enables their customers to shop from specific retail outlets without worrying about carrying cash.

According to estimates, over 68% of the banks in Austria have adopted this form of banking. To ensure that customer’s sensitive data are safe during transactions, most banks use a data encryption.

Costs incurred when opening a bank account in Austria

For one to open a bank account in Austria there are some charges that are imposed by by banks.
Such charges include:

  • Fee for opening an account which varies from one bank to another
  • Monthly fees which also vary from one bank to another
  • Fees related to credit cards statements.

Transfers of money

At times a customer may wish to transfer money from their bank account to other recipients. In such a case, they must have the following details:

  • Account number and name of the account they wants to transfer the money to
  • The name of the bank and SWIFT / BIC code
  • and also, IBAN number.