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Virtual Business Account VS Traditional Bank Account: Why should you choose a virtual account?

By FastLane Team, October 20, 2022 (6 mins)

Introduction


If you’re an SME or startup owner looking to expand your business into new international markets, there are many challenges you’ll first need to overcome, for example:

  • Strict requirements set by banks, make it tough for small businesses to open a foreign bank account
  • Exorbitant fees for foreign money transfers charged by traditional banks 
  • Long processing time to obtain a bank account
  • Banking transactions must take place during business hours, which might lead to delays

Making the decision to go global is a huge step, so it’s important to be well-prepared for success by minimizing the impact of the above challenges. If you’re a startup or small business looking to expand globally, opening a multi-currency and virtual business account can be a powerful tool. It’s also an essential first step in the growth process.

Before understanding global accounts and their advantages, it is important to understand what a virtual business account is and how it is different from a traditional bank account.

 

What you will learn:

1. What is Virtual Business Account

2. Traditional Bank Account VS Virtual Business Account

3. Advantage of Opening a Virtual Business Account

4. How can FastLane help?

5. FastLane’s Partnership with Transwap

What is Virtual Business Account?


Virtual Business Account, as the name implies, transforms traditional banking services into entirely online operations. Many traditional banks now provide internet banking as a component of their services, whereas virtual account entirely eliminates in-person branches.

 

The result of this is that you may handle your money online instantly, with a number of advantages over traditional banking. Digital business is something that millions of customers have already taken advantage of and virtual business accounts are simply the next step in this journey. With a virtual account, you can have more direct and transparent access to your finances.

 

Traditional Bank Account VS Virtual Business Account


New technologies allow banks to offer a wide variety of services remotely. Even the most complicated procedures may be carried out remotely from the bank using a mobile phone or a desktop computer. It doesn’t always matter if you’re home or abroad.

 

A virtual business account is an online service that provides similar functions as a traditional bank. It is a money payment and transfer platform that only exists virtually and interacts with customers through tools like phone, chat, and email. All of its features are gathered in one convenient mobile app. Users may access their money anytime, anywhere. 

 

We’ll compare and contrast digital business accounts and traditional accounts in the following aspects:

Virtual VS Traditional Bank Account: Which should you choose? | FastLane

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Advantages of Opening a Virtual Business Account


Utilizing digitalization in lieu of traditional methods makes it perfect for new generations of consumers as the service is accessible anywhere and anytime.

 

  • Greater Flexibility

While running a company, most entrepreneurs desire to have flexibility in their accounts as each business decision and activity may vary a lot, virtual account could thus specifically cater to people’s individual needs. 

 

Virtual account is available 24/7, and transactions are usually made through an app or website. This allows you to use your money and access your account information and services from anywhere and anytime in the world. 

 

  • Convenience and Higher Efficiency

You can conduct virtual account opening quickly and remotely, without needing to visit a physical bank or wait for very long verification. Virtual business accounts can also save you time by letting you complete tasks, such as making payments or requesting support, quickly and easily online.

 

All you need is a digital device to have complete control of your funds, from transferring payments and sending money abroad to managing loans and direct debits. Rather than having to go to your local bank branch to check your money, being able to handle your funds from your phone is a huge advantage.

 

  • Reduce Cost in International Transfer

Due to the fact that a virtual account has much lower international transfer costs than those charged by traditional banks, a virtual account is increasingly popular. People often send money overseas through virtual accounts because many of them have low or even no transfer fees.

 

  • Higher Interest Rate on Saving Accounts

Operating a virtual business account has several advantages, the primary benefit of having a virtual account is that your money will work harder for you in the form of higher interest on savings.

 

Many large traditional banks have earned consumer trust as being trustworthy and secure places to keep their hard-earned money. Thus, they have experienced growth in deposits and don’t require higher deposit account interest rates to bring in customers.

 

On the other side, digital business account platforms are continuing to receive demand for their loan- or fee-based solutions. Though this demand has oftentimes exceeded their ability to attract deposits, these virtual business account institutions are keen on growing their deposit base. The most common method to offer virtual accounts is through attractive savings account interest rates, different from traditional banks.

 

  • Environmental Friendly

Opening a virtual account does not require any paper statements, no trips to the bank, or additional workspace for staffing or housing operations. In this way, you don’t have to keep making bank trips, or saving gas for traveling. Also, if you use a virtual account, you‘d never have to carry cash around, which is incredibly convenient!

Virtual VS Traditional Bank Account: Which should you choose? | FastLane

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How can FastLane help?


As a business builder, FastLane recognizes how important having a bank account is as it is one of the crucial steps to enable business registration and cash flow management in the long term. Thus, FastLane’s team of experts offers bank account opening services in Hong Kong to maximize our clients’ bank opening success rate.

 

FastLane Group Partnership with TranSwap to Embrace Digital Transformation

However, the most prevalent trend in the financial services industry is digital transformation, which includes mobile, online and virtual business accounts. With technology progressing the way it is, customers don’t want to have to go out of their way to visit a bank in person when they can take care of business from home.

 

To always be adapting and stay ahead of the competition, FastLane Group is excited to announce our partnership with TranSwap in 2022. As the FastLane Group echoes TranSwap’s vision in assisting startups and SMEs to embrace digital transformation, We are excited about the potential collaborative opportunities between our organizations, especially in offering virtual business accounts solutions for businesses to handle their finances and empowering them with fintech capabilities and removing barriers in dealing with overseas payments. 

 

About TranSwap

TranSwap is a scale-up fintech company that empowers businesses to go global. Their solutions allow businesses to pay, collect and convert better than at the banks. TranSwap accounts give users access to named local USD, EUR, GBP, and SWIFT accounts in 34 markets without any setup or maintenance fees. 

TranSwap’s Global Account gives clients the opportunity to open a free virtual business account in jurisdictions e.g. the United States, the European Union, Hong Kong, etc, offering the following benefits:

 

  • Flexibility: You may pay, receive, and store up to 34 currencies at any time and from anywhere.
  • Cost-Saving: Easily changing and holding foreign currency when the exchange rate is to your benefit.
  • Convenience: Access and monitor company finances and make money transfer in one convenient place.
  • Efficiency: Make and receive payments in local currency to keep your cash flow smooth and give you a competitive advantage in local markets. 
  • Cost-Effective: Conduct international transactions without paying any hidden fees or having to keep a minimum account balance.
  • Safety: TranSwap is a leading global fintech business that is regulated and authorized to handle money by central banks and authorities all over the world. All funds are kept in secure accounts with major international financial institutions.

 

Looking to get your virtual business account? Get in touch with us now!



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