12 Reasons Why Small Business Owners Should Switch to Digital Banking

What’s the resource you prioritize the most as a CEO or a small business? “Time is money” – is the most common answer. Well, saving your precious man-hours can translate to increased revenue!

There’s no point denying that you’ve got associates to meet, sales targets to realize, and entrepreneurial tactics to chalk out. Standing in the queue for banking services isn’t something you’d consider in your chores.

Banks operating in traditional brick-and-mortar setups can consume valuable business hours. Neither would it be practical or safe to entrust a dedicated team to handle your banking. With digitization driving the global business paradigm toward a fast-paced future, why not switch to digital banking?

Embracing digital banking can significantly streamline the process of receiving payments from your clients, too. Do you know that 78% of US adults accessed their bank accounts through a website or mobile app? Just 29% of the US population still carries out traditional banking transactions.

So, how about switching to digital banking to streamline money transfers from both ends?

How relevant is digital banking to business owners?

Think of how banks operated a decade or two ago. As a business owner, you’d repent squandering time visiting banks to withdraw or deposit money, transfer funds, and obtain the latest statements. Given that banks serve hundreds of clients each day, who would compensate for the lost man-hours as you wait in the queue?

With the inception of digital banking, CEOs and small business owners can access bank accounts virtually at any given time or place. Gone are the days when you needed to visit the branch to seek banking services. With mobile banking and internet banking streamlining digital banks, you reserve the liberty to choose any time you are comfortable with.

Whether you are at your office or home, traveling or relaxing, digital banking brings you unprecedented independence!

The relevance of digital banking to small business owners becomes even more practical when you evaluate these statistics.

• A study by the Bank of America reveals that 85% of small business customers count on digital payment channels.
• Between 2018 and 2022, the share of the US population using digital banking services increased from 61.3% to 65.3%.
• In 2021, mobile banking was the primary method for 43.5% of US bank account holders to access their accounts. Just 14.9% of the population counted on bank tellers, in contrast.
• 87% of the respondents in a Chase survey admitted to using their mobile banking apps once a month at least.
• In 2022, as much as 77% of US citizens had a mobile wallet to make digital payments.

Benefits of digital banking for small businesses

Let’s have a look at the plethora of benefits that digital banking brings to the table.

1. Greater convenience

Well, digital banking brings you perks beyond skipping queues and staying productive. Making transactions have become far more convenient and accessible, thanks to virtual payment modes.

Simply downloading the app or accessing your bank’s website empowers you to process salaries and transfer money. CEOs and business owners can also monitor their accounts at any convenient time through a mobile device, laptop, or computer. Since business owners need to make several daily transactions, digital banking significantly eases the process.

Accountants and cashiers, too, need not wait for the month to check transactions. With online bank statements easily available, your teams can instantly check the status of wired funds or deposits. This way, you can detect errors or spot delays in payments in real time.

As a business owner, you know how much failed payments can bother you! Digital banking brings you mental peace that drives your productivity.

2. Enhanced security

At one point or the other, business owners need to entrust their account management to others. Thanks to the plethora of features you enjoy with digital banking, you can set specific employee access to your account.

After all, you won’t allow all your employees to access your bank account, right? With select employee logins and passcodes, CEOs can control who accesses their accounts. This eventually leverages the overall financial security of your company.

Of course, you reserve the liberty to decline access for ex-employees or even existing ones if the need arises.

Other security features that digital banking brings to the table include the following:

• The biometric login authentication feature ensures that only authorized individuals get access to your bank account.
• Your bank may request additional authentication if someone tries to log into your account using an unknown device.
• Digital banking also enables account holders to set up MFA (multi-factor authentication) for stronger security purposes.

Apart from this, small business owners can also secure their digital banks through the FDIC (Federal Deposit Insurance Corporation). This would compensate them for losses…