You probably came across this article because you own a small business or want to open one very soon. You’d like to open a digital bank account, but you also want to know the differences between digital and traditional banks.
Keep reading and find out which is best for you in terms of fees, branches, ease of use, ATMs, investing, customer service and more. However, first you must consider the nature of your business and the conveniences you need.
Fees
Typically, traditional banks charge a monthly maintenance fee for your business accounts. The cost will differ depending on the bank, but on average, it could be between £5 and £20. However, there are ways to avoid paying those fees, by maintaining a minimum balance or setting up a monthly direct deposit.
Conversely, there are no fees attached to any online banking, and if they charge any fee, it will always be at a lower rate than that of traditional banks. This is because digital banks don’t deal with any cost associated with having a physical location and the required staff that comes with that.
Customer Service
This element is a determinant one. Customer service in traditional banks happens in person, while digital banks hold their customer support online. Many businesses are switching from traditional to online banking because they get a more comprehensive and responsive customer service. For example, some online banks like Revolut or Monzo give you the opportunity to chat with customer service agents for support, instead of having to book an appointment or make a phone call and having to wait for a long time in a queue until an agent speaks to you.
Convenience
Digital banks are simply more convenient, especially nowadays as everyone in the UK owns a mobile phone. You can access all the features of your bank through your phone during the 24 hours of the day, seven days a week. You don’t have to book an appointment like you’d do with a traditional bank.
Many traditional banks have their own online app that allows customers to access some features like the account balance or making a transaction. However, you still don’t have all of your banking elements in one place like a mobile bank does.
Additionally, online and mobile banking saves us one of the most valuable commodities in life: time. They help save you from spending more time on your finances than you need, for example, by depositing a cheque online compared to visiting a physical location.
Bottom Line
Mobile banking has a lot of benefits like 24/7 access to accounts and the ability to make transactions with a single tap on the phone, which has made trips to the local bank a thing of the past.
It’s important to consider all of these factors (and more) when looking for the best option between the two. Nevertheless, there hasn’t been a better time to get savvy with mobile banking as it may be the only way forward. This is because digital banking is always innovating technologically and has become a vital tool for organisations all over the world. Mobile banking is redesigning the role of a bank.
The post Digital Banks vs. Traditional Banks for Small Businesses – which one is best? appeared first on Euronewsweek.
