We know virtual banking is ideal for small businesses. It enables business finances to be managed online and supports a range of digital payments options. These and other features open up a world of possibilities to help businesses run more efficiently and effectively.
Here’s our pick of the top five benefits that virtual banking can bring for small businesses:
Virtual banking helps small businesses become more flexible as they don’t require additional approvals or change of service if customers want to make changes to their business.
For example, virtual bank accounts often allow a wide range of international payments as standard. Payments across borders are made rapidly and at a much lower cost than traditional banking methods such as wire transfers.
This gives businesses the ability to try new things without the hassle of setting up additional accounts or services with their banking provider.
This flexibility is especially important for small businesses in manufacturing, retail and logistics, as uncertainty continues around the UK’s future relationship with the European Union.
Increasingly, innovation is what makes a small business stand out. But time and resources for innovation are often scarce, as daily tasks such as business operations demand the lion’s share of attention. By removing some of the time-consuming overheads of running a business, there will be more time for innovation.
Virtual banking can drastically reduce the amount of time consumed by tasks such as settling invoices, payroll and managing overseas payments. Most virtual bank accounts have mass pay-out capabilities, meaning they can support the payment of hundreds of invoices, wages and expenses with a single mouse click.
This means the effort previously devoted to traditional finance can instead be used to generate or develop new products and services.
Attracts younger talent
Many smaller businesses struggle to source the talent they need. Younger talent in particular don’t always consider a career in a small business. One way in which a small business can change perceptions is through virtual banking.
While traditional banking can mean a lot of repetitive work, virtual banking simplifies things and drastically reduces the time spent on such tasks, whether you work in the finance team or elsewhere in the business.
As well as reducing the need to complete onerous tasks, virtual banking helps save time through these simplified processes, giving employees greater freedom to focus on the more interesting and rewarding aspects of their job.
Makes life simpler
Running a small business is becoming increasingly complex, thanks to the new technology, constantly changing rules and regulations, and political uncertainty that entrepreneurs must contend with. Any opportunity to simplify everyday work is therefore welcome.
Virtual banking can deliver this by making the financial side of operations more streamlined and efficient.
With no physical bank branches, there’s no need for staff to take time out of their workday to travel to the bank. Accounts are set up online and businesses can manage their finances on a laptop, tablet or smartphone.
Virtual banks provide customer service and support 24/7, meaning issues can be resolved quickly, even if they occur outside normal business hours. And with payment fees deducted at source, the balance businesses see in their bank account will provide an accurate picture of finances.
Supports digital transformation
Many businesses are putting digital technology and processes in place to transform their organisations and become more efficient, effective and adaptable.
This shift to digital technology can be a challenge, especially for larger companies with legacy technology and entrenched processes. But the use of digital payments and virtual banking demonstrates the value of digital technology.
Everything can be done using an internet-connected device, and relevant business systems can be integrated via APIs. If your business switches to a cloud-based accounting system, for example, that system can easily be linked into the company’s virtual bank account.