As technological advancements continue to seep into the financial sector, more companies are now embracing digital transformation to serve their ever growing business needs. Digital business accounts are one of the most popular developments that has come about as a result of the need for alternative banking and payment solutions.
Digital business accounts are one of the many products offered by FinTech companies. These accounts are based on technology and financial infrastructure that is focused on the digital economy and is a modern solution to the need for local and cross border payment services. Digital business accounts have gained popularity in recent years as they have become an easy and cheaper alternative to the services offered by many traditional banks. In most cases, digital business accounts work in similar ways to traditional bank accounts, which allows the account holder to receive or transfer funds from and to SWIFT and local payment systems.
What You Will Learn
1. What are Digital Business Accounts?
Digital business accounts first came about in response to demand for simple, quick, and convenient online and mobile finance services. It is the digitization of various traditional banking activities and services that were historically only available to customers when physically inside of a bank branch. While digital business accounts are not the direct product of banking institutions, they have become a way for FinTech companies to directly challenge these institutions as they provide alternative payment solutions and address certain banking needs unique to entrepreneurs and SMEs.
For example, the process to open a bank account typically requires an applicant to physically attend a meeting, complete paperwork and even possibly wait in branch queues. On the other hand, digital business accounts look to modernize this process by shifting the entire experience online. As a result, no in-person meetings would be required, supporting documents can be submitted through online portals, allowing applicants to complete their application at their own pace and submit it online whenever they are ready!
2. What are the Benefits of Digital Business Accounts?
From account opening to making transfers, digital business accounts allow for a business to manage all aspects of their finances in a completely online manner. Furthermore, managing these aspects of your finances can be done anytime, anywhere.
In addition, many cloud-service providers understand that businesses now expect integration between all their business tools. Digital business accounts like those offered by Aspire and OFX can integrate with the most popular cloud-solutions like Xero, further enhancing the ability to manage a business anytime, anywhere! Some business accounts like Airwallex can link with Amazon, Magento or Shopify accounts, making these solutions particularly attractive to eCommerce business operators.
Low and Transparent Fees
FinTech companies usually compete with traditional banks through offering better fees and more competitive pricing as they tend to have lower operating cost due to the lack of brick and mortar establishments. They can even offer mid-market exchange rates which are oftentimes more favourable than rates offered by traditional banks! For instance, Airwallex currently does not charge any monthly fees, no card fees and only charges a small margin on top of their interbank FX rates!
Digital business accounts are in many ways similar to traditional bank accounts. Many FinTech companies can not only facilitate the ability to receive money via bank transfers, either domestically or internationally, but they can even provide currency exchange services! The best digital business accounts also work closely with traditional banks to provide their users with instant credit limits – this is ideal for SMEs who are looking for additional working capital to boost their business growth.
3. Why work with FastLane?
As a business builder, the FastLane Group realizes how important having access to a bank account is. As businesses should always be adapting to new technologies, digital business accounts solutions offer businesses a modern way to handle their finances.
Through our partner network, the FastLane Group can help you get your digital business account setup and running!