Online banking platforms are now a way of life and business. From paying bills to borrowing loans you perform financial transactions from the comfort of your home or office. As a small business owner, you would be remiss not have integrated an online bank account while serving your customers.
The global market for online banking platforms is growing rapidly. A report by Market Research Future (MRFR) predicted that the online banking market would grow at a compound annual growth rate (CAGR) of 8.01% from 2024 to 2032, driven by increasing digitalization and the demand for convenience. This is indicative of a growing tendency on the part of the businesses to adopt digital solutions because of efficiency and accessibility.
Thanks to technological advancements and implementation of financial regulation and security measures, you can deposit and withdraw money with an online bank as well as pay for anything from any part of the world. If anything, it is an expectation that every business has an option of processing payments electronically- and online banking plat forms offer this option- otherwise you might end up chasing away your customers.
What Does an Online Banking Platform Do?
It’s safe to assume as a small business owner you already have some idea of how an online bank works. However, it is essential to have a clear understanding as this will help you make the best decision when choosing a suitable online banking service for your business.
Ever since the advent of online banking systems in the 1980s, a lot of changes have happened.
Online or digital banking enables a person to conduct banking and financial activities over the internet with the bank via electronic modes such as a mobile phone, laptop, or tablet. With online banking you can manage your online bank accounts anytime without the inconvenience of walking into a banking hall.
Another perk is your financial transactions and user data are protected through a range of security measures such as strong encryption protocols, login credentials, and firewalls.
At this point, it’s obvious online banking platforms offer great benefits such as convenience, easy access to banking services under one roof, and the security of your funds.
The next step would be to identify the factors to consider when choosing the best online banking platform that meets your business’ needs. This is keeping in mind that your customers will always get the best experience whenever they are purchasing a good or service from your business.
What to Look for When Choosing an Online Banking Platform
Online banks generally provide features that allow you to seamlessly perform business banking operations. In this regard, you should look out for the following features:
Fees and charges
As a small business, it is wise to keep your operating costs to a minimum including your online bank charges and fees. Compare these costs across different banks to ensure you’re getting the best value. It would be best to pick an online bank account with minimal or no fees, especially for services you use frequently.
A good number of online banks compared to traditional banks offer lower rates and fees. Most have no charge on ATM fees, minimum balance fees, or overdraft fees which is a given with a normal bank. The point is to ensure you choose an online bank that fits with your business needs and does not push your operating costs even higher.
Minimum balance requirements
Different online bank accounts have varying minimum balance requirements. By choosing an online bank account that aligns with your financial capabilities, you are able to maintain your budget and avoid cash flow problems in your business.
This is also because some online platforms charge fees if you fail to maintain their minimum balance threshold, losing money your business needs.
Also Read : 5 Things SMEs Should Consider When Opening a New Location
Safety and security
Choose an online bank that effectively safeguards your money and personal information. Look for an online banking service that provides top grade security measures such as multi-factor authentication and encryption. The platform should also have regular security updates and audits to minimize breaches. Given you will be handling sensitive customer and business information, it is imperative that you use a secure online bank account.
Seamless customer service
Since it is a virtual service, online banks need to have reliable customer service support. In case of any issues such as system downtime or glitches, the bank representatives should be easy to reach. Consider a platform that provides 24/7 assistance either via a phone or online chat.
User-friendly experience
It’s important to choose a digital platform with simple and easy to navigate features and functionalities to minimize frustrations. It should be easy for you to open an online bank account without too many steps involved including moving money from account to account, depositing cheques, or paying bills.
Keep in mind that most people use mobile phones when doing their shopping and payments, so go for a platform that is mobile friendly too.
Product offerings
If you are seeking to get the most out of your user experience, choose an online bank that meets your needs. Typically, online banks provide the standard banking services through a website or mobile apps. Some, however, have additional product offerings such as savings, checking, and investing accounts which can be a plus if for example you want to set savings or investing goals. Global platforms such as Payoneer also allow multi-currency transactions if you are dealing with international customers.
Also Read: 5 Proven Strategies to Elevate and Protect Your Credit Score
Reputation and reviews
It’s wise to also pick an online banking platform that you would recommend to anyone. Online reviews largely underscore customers’ experience of a product or service and companies use them as a basis to inform their product research and development. According to wisenotify, 68% of consumers are able form an opinion after reading between one and six online reviews. Further, it takes 10 reviews or less for 9 out of 10 consumers to decide if they can trust a brand. A reputable and positively viewed online banking platform would be a good investment as you grow the business.
Final Thoughts
Choosing an online banking platform doesn’t have to be a daunting task provided you know what to look for. Ensure to do proper research and carefully assess an online platform that offers a blend of low fees, minimum balance requirements, positive user feedback, comprehensive product offerings, high security, excellent customer support, and optimum user experience. A platform such as the Kenya Bankers’ Association provides useful insight on Kenya’s banking industry as well as highly-rated banks to trust your money with. This way your business can thrive with a secure and satisfying digital banking experience.
