Digital transformation is about businesses putting the right digital technology and processes in place to transform processes within their organisation so they can become more efficient, effective and adaptable.
This transformation encompasses a range of technology: from mobile and cloud computing to the Internet of Things, big data and artificial intelligence.
For larger businesses, digital transformation is often about becoming more agile so they can respond to challenges from emerging competitors offering something different through the use of digital technology.
But it can also drive growth for smaller businesses by streamlining processes and supporting innovation. Backing this up, a survey by the law firm Grant Thornton found just under half of senior financial executives said digital transformation is intended to help their businesses overtake competition through differentiation.
This shift to digital technology can be a challenge, especially for more established companies with legacy technology and entrenched processes. But the use of digital payments and virtual banking can demonstrate the benefits of using digital technology to move away from traditional ways of doing things.
The advantage of virtual banking over traditional banking is that it is largely built on digital payment and web technology, meaning it isn’t hindered by legacy processes or technology. As a result, it offers small businesses the flexibility and affordability they need to grow and develop.
Opening a virtual bank account is quick and easy, with no need to visit a bank branch to get things up and running. And once they’re set up, businesses can access their account online or via mobile to quickly get visibility of payments sent and received, and the amount of money they have available.
As transactions are carried out over the internet, payments can be sent and received from different countries quickly and at a low cost, with just a single account needed for multiple currencies. The ability to make mass pay-outs to settle multiple invoices or run payroll also reduces the time and resources needed for these tasks.
The fact that virtual banking can be easily and cost-effectively integrated with e-commerce sites, e-wallets and contactless payment methods also reduces the need to use physical cash – something that will become increasingly important as the use of physical cash continues to decline.
These capabilities all help reduce the hassle and complexity that company finances have traditionally involved.
For any business looking to digitally transform, virtual banking offers a quick win: it shows clearly how using digital technology can improve the way an organisation operates.
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, it can be linked into the company’s virtual bank account.
Virtual banking shows the power of digital technology in action, while fitting seamlessly into businesses that are making digital central to their future success.