Digital banking for businesses
Nowadays, it’s almost impossible to find places untouched by the increasing digitization of our world. From making appointments to payments, almost everything is done over the internet.
The banking industry is no exception. Though traditional banks are still around, the increase in digital banking has brought about some changes to the e-commerce landscape. If you’ve been wondering if digital banking or traditional banking is more suited for your business, read on to find out more.
What is a digital bank?
The first thing to know is that a digital bank is not the same as an online bank account. Digital bank organisations do not have physical locations or infrastructure – everything is conducted completely online. Because of this, all your activities will be conducted online, on their website or app.
Since they don’t have a physical presence and do not have to pay for things like rental, many of these digital banks can price themselves competitively.
Digital vs Traditional business bank
The main difference between digital and traditional business banks is that the former does not require hard copies of documents. All records of your transaction, communication and money exist online for you and the bank to access.
Why should you choose a digital bank?
Allows you to open a bank remotely
All you need to do to open an account is key in your details into their site and your account will be activated. It reduces the hassle of having to speak to an advisor, prepare physical copies or even travel down to a branch.
You also won’t be limited by the opening hours that traditional banks often have as you can open your digital business bank at any time of the day. You won’t have plan time to make a trip down to the bank and waste time queuing either.
Self-service functions
These online banks are also often user-friendly and easy to navigate. All the features of a traditional bank are here, and better too. Even things like customer service will be readily available on the bank’s online interface. Everything is done smoothly online, and a human expert will often be available via chat or call if you need it.
Competitive prices
As digital banks have little to no physical presence, they require fewer overheads than traditional banks. Digital banks pay less, or even no rent, fewer staff salaries and costs on office equipment and utilities.
They also remove the need for a human to do the administration work as everything is done digitally. All these cost-saving features of digital banks allow them to provide consumers competitive account fees or even none at all.
Better security
Most digital banks have elements of security such as two-factor authentication, which allows you to see if someone has tried to access your account. This can be done easily through your phone, making digital banking a piece of cake.
Greater visibility
The nature of digital banks means that it is run on code that can be incorporated into other platforms like cloud accounting software, digital signature and contract management systems as well as money lending and international trading platforms.
This allows the process of banking to be much easier and merges many aspects of the financial industry into a simple process. If you are looking for someone to take care of these details for you, Swiftly offers such accounting service.
Opening a digital business bank account
When setting up your first digital account, make sure to set some time aside to do it and be meticulous about the information that you will need to submit. Getting this done at the start helps you avoid any future problems.
