3 Key Considerations when Choosing a Digital Business Account

It’s official – the world of finance is undergoing massive changes. As with other industries, the COVID-19 pandemic has accelerated digital transformation within the banking sector.

While banks still reign supreme, the emergence of FinTech solutions has invigorated new life into an industry otherwise bogged down by outdated processes. By doing so, it is reshaping the way businesses handle money and manage their operations.

The emergence of the digital business account, in particular, has opened a gateway for better ways of working through streamlined processes, enhanced capabilities, and seamless integration.

Here are 3 key considerations to keep in mind when choosing your digital business account, and how you can make the switch today.

Overview:

State of business banking

Part of the reason why traditional banks were so popular was due to the simpler needs of businesses back then. At its core, businesses simply required banking organizations to accept deposits, approve loans, and transfer money. Traditional banks were great at this.

However, in today’s digital age, this no longer holds true. Gone are the days where you travel to the bank, sign thick stacks of paper, and wait 5 to 7 business days for an account. Business owners now have more important things to do, and might want to put their capital to better use.

Their needs have developed and the entrepreneurs of today now seek a wider range of options that are more intuitive, innovative, and perhaps most importantly, tailored for their operational needs.

Emergence of FinTech solutions

Here’s where FinTech solutions come into play. Through cutting-edge technology, digital business accounts are emerging as an alternative to traditional banking – and it is quickly gaining popularity.

Over 70% of consumers in Singapore are keen to switch to digital accounts. Meanwhile, its adoption in Hong Kong is expected to increase by 10% by 2025. Imagine how businesses can benefit from this.

Thanks to their digital nature, digital business accounts can specifically cater to the needs of different businesses and include a multitude of functions beyond what traditional banking accounts can provide, such as multi-currency support, lower payment fees, prompt settlement, and even virtual debit card facilities.

They have emerged to become centralized tools for business owners to improve their payment management and have complete overview of their financials.

Digital Banking vs. Traditional Banking

While traditional business accounts do work in similar ways to their digital counterparts, there are key differences that contribute to the latter’s popularity.

  • Easier access. Digital banking brings a whole new meaning to 24/7. You can access your platform, perform operations and resolve any outstanding issues almost instantly through your platform.
  • Better pricing model. Digital banking has more effective and user-orientated pricing algorithms that result in better pricing flexibility. Additionally, many digital banks do not require an initial deposit to get your account started.
  • Automation and digitalization. From scheduling regular payments, handling invoices to integrating with other existing services, digital banks offer a range of services that take the hassle out of existing business processes.

Key considerations of going digital

Ready to make the switch? Here are some key factors to consider when choosing your digital business account.

1. Ease of convenience.

One crucial benefit of digitalization is convenience. Setting up your account should be a painless process with minimum roadblocks along the way.

Digital providers are able to provide this through platforms that allow for online forms and digital submission of documents. An experienced digital provider should also be able to set up your account quickly so that you experience minimal disruptions to your business operations.

We can’t understate the importance of customer support. Having a dedicated person to guide your process can greatly aid in business success. It is important to go with a trusted digital provider with trusted reviews and testimonials by other businesses.

2. Cost of operations.

Different businesses have different needs. Perhaps you’re an emerging startup and your existing capital is crucial to growing your business. A digital account provider that charges initial opening fees and mandatory minimum deposit would probably not be the best option in this case. Other fees to note include maintenance fees, overdraft fees, withdrawal fees, and foreign transaction fees.

The great news is there are a variety of solutions available that are flexible in cost so that you can free your financial resources to channel into more important areas of work.

3. Account features and services offered.

The last important factor to consider is the various features and services offered by your business account provider.

Finding a provider who is able to provide seamless integration with your other services could be a dealmaker for your business – not to mention, the cost savings (like platform fees) from having your services all under one roof.

Some additional features to keep an eye out for:

  • Integrated bookkeeping services
  • Expense management
  • Bill pay feature
  • Wire transfer services
  • Multi-currency transactions
  • 24/7 customer support

Remember: with less time spent on managing your operations, you have more time to focus on other crucial business aspects.

Go digital today

If you’re wondering what first steps to take, why not consider Sleek? With Sleek Business Account, you can now manage more for less. From accounting and bookkeeping, salaries and payroll, to taxes and invoice settlement, we have the only business account able to do it all.

Managed on one seamless platform, the Sleek Business Account is our latest offering to help build your best business life and is now free of charge for all existing and new clients.

  • Smart. A business account with automated bookkeeping services and expense management.
  • Fast. Easily set up your business account and collect payments instantly.
  • Easy. Maintain your account easily with no setup fee, no initial deposit, and no minimum balance.
  • Innovative. Incorporate your company and open a business account on one platform.

For SMEs and start-ups, businesses accounts are essential, but we've observed how getting one takes unnecessary time away from your business. The Sleek Business Account was born with this in mind.

Pauline Sim, Head of Fintech and Strategic Partnerships Tweet

Ready to make the switch? Talk to us to get started today.

Wrap up

As we enter this new age of digitalization, digital business accounts present a new wave of opportunity for businesses. Making the switch to a digital business account could be the next step to take your business to the next level.

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