In order for businesses to ably meet the demands of today’s consumers, they need to be ready to upgrade their systems and update key aspects of their business operations when the need arises. With the latest technologies adding convenience to people’s lives, it’s only logical for consumers to expect businesses to employ modern solutions for aspects like order fulfillment and payment. This is especially true for modern business banking.
One thing you’ll want to leverage as soon as possible as a new entrepreneur is business banking online. Before online business banking became part of the mainstream, both small- and medium-sized enterprises (SMEs) and their larger counterparts used to rely solely on traditional banking methods. Now, however, it’s more common to see businesses use modern banking products and tools, like Maya Business Deposit, to manage their finances. Now’s a good time for you to do the same and learn about how modern business banking solutions can get your business off to a good start.
Traditional versus Modern Business Banking
When businesses engage in traditional banking, they normally have to visit physical bank branches to withdraw, deposit, or transfer money to and from their accounts. They also often go through a lot of paperwork and manual documentation when handling high-value transactions or applying for loans.
Business clients may have put up with these procedures more willingly in the past, but many have realized just how slow, inconvenient, and sometimes even unsafe they can be. When modern business banking solutions were introduced—and when they became part of the mainstream due to events like the COVID-19 pandemic—entrepreneurs of all strokes welcomed the latest banking technologies, as these vastly improved their banking experiences.
In today’s banking environment, which is greatly characterized by digital and mobile banking, entrepreneurs are no longer confined by their bank’s physical branch and operating hours if they want to complete their banking transactions. With most banks having their own websites or mobile apps, business owners can easily access their bank’s services online anytime, anywhere. And since most processes have been adapted digitally, there’s much less need for physical checks and paperwork.
Modern banking platforms also enable businesses to go cashless with their transactions, which is generally the safer and more efficient approach compared to physically moving large amounts of cash around. Due to their accessibility and ease of use, modern SME business banking solutions have been a boon for fledgling entrepreneurs.
What Are the Latest Technologies and Trends in Modern Business Banking?
Banks that serve business clients are currently striving to innovate and continuously deliver a streamlined banking experience for the latter. Their solutions revolve around improving their customer service, boosting operational efficiency and security for client companies’ finances, and reducing the cost of doing business.
1) Digital Account Opening
Digital account opening is a streamlined business banking process that allows business clients to open bank accounts entirely online. Without the need for physical branch visits or paperwork to open an account, business banking clients can get immediate access to top-of-the-line account management and capital management features.
The absence of physical documentation processes and unnecessary expenses, like transport costs going to and from a physical banking location, enables entrepreneurs to establish banking relationships swiftly and decisively. For startups and small businesses, who know the value of properly accounting for every cent they have, fast access to a business account via online account opening makes a huge difference.
2) Digital Wallets
Digital wallets are virtual tools that store payment information, such as data from credit and debit cards, for online and mobile transactions. A digital wallet can be accessed through the bank’s dedicated app or platform, which means business owners can make key banking transactions as long as they have a reliable internet connection. This technology has been particularly beneficial for e-commerce businesses and those engaged in online trading.
3) Open Banking
Open banking allows businesses to share their financial data securely with authorized third-party providers through application programming interfaces, or APIs. This trend fosters increased competition and offers businesses a broader range of financial services beyond what a single bank can provide.
Under the open banking model, businesses can choose to submit their data to other financial institutions, fintech companies, or apps. These third parties can then offer services like financial analysis, budgeting, or access to multiple bank accounts in one dashboard.
Due to the structure of open banking, it empowers entrepreneurs to have more control over their financial data and gives them access to a wider array of tailored financial services. Moreover, it encourages financial institutions to provide better, more competitive services to retain their customers in an open and interconnected ecosystem.
4) Near Field Communication (NFC) Technology
Near Field Communication (NFC) is a short-range wireless technology that enables secure communication between devices when they’re placed close together. Thus, it’s often used for contactless payments and transactions.
With this technology, businesses can make payments and transfer funds by simply tapping or bringing their NFC-enabled device (e.g., smartphone or card) close to a payment terminal. The data is then transmitted securely and swiftly to the bank involved, making it a convenient option for in-person transactions.
5) Biometric Technology
Biometric technology uses the unique physical or behavioral characteristics of individuals for authentication and identification. In modern business banking, biometric methods like fingerprint recognition, facial recognition, and voice recognition are increasingly being used for secure access to accounts and transactions.
Through this system, businesses can reduce the risk of unauthorized access and fraud, providing them and their consumers with peace of mind when conducting transactions or accessing sensitive financial information.
6) Cybersecurity Advancements
Modern business banking also employs a range of cybersecurity advancements, including advanced encryption, threat detection systems, and real-time monitoring. These technologies help safeguard clients’ sensitive financial information and transactions from malicious actors. A business client can also rely on the integrity of their bank’s digital financial operations and leverage this to boost customer trust, especially at the point of sale.
Thanks to modern business banking, it isn’t as hard for an entrepreneur to get into the thick of managing their business finances. This all translates to better operational efficiency and enhanced service to the business’s own customers.
Now that you have a better understanding of what modern business banking technologies can do for you, it’s now an issue of finding the right provider. Choose one that can help you fully harness these technologies for the growth of your business.