Established ways of operating in traditional banking are now decades old. The main priority behind those operations was to ensure the security of funds and to make sure customers are confident in banks’ ability to safeguard their money and grow their investments.
Another factor is the technology that banks have at their disposal. With the advent of the internet and digital technology, these established ways of doing things are now less relevant – as new approaches are now possible that don’t compromise the security of funds or data.
These developments have enabled the emergence of virtual banks that use the internet and other electronic channels. These virtual banks deliver a number of benefits to customers over traditional banks and their bricks-and-mortar approach.
Outlined below are five main benefits for doing business with virtual banks:
International payments without the fees
Because of the more efficient way in which virtual banks operate, they don’t need to charge the same fees as traditional banks when customers make or receive international payments. For example, a freelancer based in the UK can receive payments from clients in the US and Asia through a virtual banking platform without being charged the level of fees charged by traditional banks. In many cases, they pay no fee at all.
Hassle-free financial transactions
Virtual banking platforms have been developed with modern businesses in minds, simplifying the payments process to make it easy and secure for small businesses to operate in international markets.
For example, payment cards issued by virtual banks can be used without a charge wherever the cardholder is in the world, with flat ATM fees, and the ability to withdraw cash in the local currency. This convenience also extends to the ability to check and top up the card balance using a mobile app.
Instant global payments
Rather than using expensive international wires, virtual banks accept payment directly from users’ clients. This means you can instantly send money to any country in the world. Accounts are virtually global, meaning you need only a single account to collect, hold and send payments in multiple currencies and channels.
A more flexible way of banking
Thanks to not having physical branches, virtual banks are set up to deal with customer needs and issues in a way that suits people best. Customer service is available 24/7, and balances and transactions are designed to be made online or using a mobile device, rather than being forced to fit these newer ways of doing things. This makes banking faster and more efficient, allowing customers to have real control of their finances.
Helping smaller businesses do things on their own terms
Startups and smaller businesses often don’t have their needs met by traditional banks; business services tend to be better suited to larger organisations with more established needs who are dealing with larger sums of money. Virtual banking provides other types of businesses with the means to operate effectively and efficiently, with lower overheads and with the ability to work in a more global way, rather than limiting the scope of the business and the talent pool they have access to.