Today, businesses utilize online banks for financing, payment processing, and other services. Since there are various benefits, online banking is one of the fastest growing segments of the financial industry. In fact, online banking is expected to grow at 22.6 percent CAGR from 2017 to 2023, reaching a total value of nearly $30 billion.
How Your Business Can Benefit from Online Banking Services:
1. Online Banks Are Convenient
Many online banks offer services that can be accessed online 24/7, so you don’t have to stand in line, waiting for a teller to assist you. Instead, you can access most, if not all, of the same services through an online portal, whenever or wherever you need them.
Want to pay your balance in real time? With online banking, it’s easy to do so. Need to transfer funds to a different account? No problem. Ultimately, with online banking, you can handle your financial needs according to your own schedule, instead of the bank’s.
2. Simplify Payroll
Most online banks offer payroll management services, which alleviates a major burden for small business owners. Through your online bank, you can easily send and track payments. Also, employees benefit from being able to deposit paychecks without visiting their local branch.
3. Simplify B2B Payments and Invoicing
In addition to paying employees, online banking can facilitate payments to and from other businesses. By doing this, you’ll be able to easily track payments and create a verifiable paper trail. Some online banks even offer advanced business-to-business payment tools and invoicing features, so you might want to utilize these options.
In addition, many online banks offer affordable international transactions and favorable exchange rates, so you’ll be able to send payments to people overseas. This can be useful if you frequently make international dealings and want to avoid pesky fees or unsafe transaction methods.
4. Lower Costs
When running a small business, it’s crucial that you find ways to save money. Luckily, many online banks charge lower service fees than traditional brick-and-mortar banking locations. Since online banks don’t have the overhead costs associated with maintaining physical outlets, they can pass on their savings to their customers.
In addition, because there are so many banks out there, online banks know they must compete for your business. Offering low fees is one method that they use to attract customers. However, you should read the fine print and fully understand all fees prior to signing up for an online banking service.
5. Widespread Physical Access Through ATMs
While you’ll conduct many of your financial transactions online, you may still be able to access your online bank through an ATM. Most online banks have their own ATMS, or partner with other banks to offer affordable or free access to ATMs. So, when you need physical cash, you can withdraw it!
Keep in mind, however, that if you use an out-of-network ATM, you may be charged a fee. While these fees are usually affordable, you should understand how much you’ll be paying before you make a withdrawal.
Conclusion: Online Banking is Great for Small Businesses
Online banking offers entrepreneurs lower costs and increased accessibility – both of which are crucial aspects of running a successful business. If you don’t have an online bank account, you should research available options and select a bank that will fit your needs. If you partner with a great online bank, tell us about your experience in the comment section below!
Editorial Note: Any opinions, analyses, reviews or recommendations expressed in this article are those of the author's alone, and have not been reviewed, approved, or otherwise endorsed by any of these entities.
