The Beginner’s Guide to Digital Banking for Small Businesses
Digital banking has become the go-to option for most small business owners because it offers enhanced security features, convenience, cost savings, and environmental benefits. In this beginner’s guide to digital banking for small businesses, we will explore the various advantages of switching to digital banking methods and how they can help your business thrive.
Keep Track of Your Finances
Managing finances for a small business is challenging, especially if you cannot afford to hire top-level accountants or an advanced accounting system to monitor all your financial processes. However, digital banking allows smaller enterprises to manage their finances smartly and keep track of everything in the form of reports, either weekly, monthly, or quarterly.
By leveraging digital banking solutions, you can easily filter reports, which provides an extra edge to decision-makers in the company. You can take a step back and see what you’ve paid to whom in which time period. Some neobanking solutions for businesses even allow you to share your financial data with a third party, like a financial analyst. This will save you the cost of hiring a full-time analytics team.
Getting out of the office, beach or even when you’re stuck in traffic could prevent you from accessing your financial information if you rely on traditional banking methods. However, with digital banking, you’re carrying all your financial data in your pocket on a mobile device, which makes it very convenient.
Online banking has become the leading way to handle money globally, and it offers a host of features that you can use while traveling, or even in a meeting if it allows it. You can easily check on questions regarding finances that you can’t know for sure during meetings, in a matter of seconds.
With digital banking, you can have it all, employee salaries, payments, bills, and invoices, in one place, at all times.
Traditional brick-and-mortar banks with physical locations need to spend a ton of resources on organizing financial records and documents the usual way. They need to pay for a location, build an office, have ten times the number of employees, and interact with customers one-on-one daily. All of this requires more resources and leaves almost none for innovation.
On the other hand, neobanks don’t rely on physical locations and invest all they’ve earned into improving the digital interface and infrastructure of their product. This makes automatic billing seem like a walk in the park.
If your employees are on a fixed salary basis, you can easily schedule all salary payments. Other expenses like bills can also be deducted automatically, and even monthly subscriptions, since you can easily get a business debit or credit card alongside your banking account.
Enhanced Digital Security
One of the biggest benefits of digital banking is enhanced security features. With digital banks, there are way more resources to spend on innovation and security, while traditional banks have to spend money on locations and traditional real-life security personnel, who can’t really keep you safe from hackers.
New online payment platforms operate with advanced blockchain technology, which brings with it a whole new level of decentralized security. This prevents attackers from hacking one specific place or domain and gaining information. Information gets encrypted and broken down into nodes within the blockchain, making it almost inaccessible to hackers.
Aside from high-level data encryption, digital banks also take advantage of numerous firewalls and the best and latest antivirus software. Of course, regular KYC inspections are still done for additional security, preventing social engineers from accessing your accounts.
Digital banks have an almost unnoticeable environmental footprint. Paperless operations, transactions, online support, and no office, meaning no commuting, are just some of the reasons digital banks are much better for the environment.
Whether you are concerned about nature and the environment or not, having a smaller environmental footprint is a goal everyone should strive for. New regulations regarding certain operations are being implemented each month, and some of these impact the amount banks charge, but not digital banks.
Each year, the reasons why a small business should switch to digital banking instead of relying on brick-and-mortar banks continue to accumulate. Digital banks lower your cost, provide better security, convenience, automatic payments, and financial tracking. The best thing of all, it’s easy to start and try without you having to visit an actual bank. All from the comfort of your home.
Digital banking is the future for small businesses looking to streamline their finances, increase efficiency, and gain a competitive edge in their industry. So, why wait? Start exploring the numerous benefits of digital banking for your small business today.