The Top 10 Benefits of Opening a Digital Business Account
Startups and small businesses are drivers of economic growth and innovation. They are experimental, bold, and quick to react to changes in consumer demands. They are also increasingly borderless, especially those engaged in eCommerce.
They need innovative banking solutions that move with them; quickly, affordably, and internationally. Digital business accounts are a solution to that need.
Understanding Digital Business Accounts
Digital business accounts - also known as virtual accounts - are fully online, cloud-based accounts that are linked to traditional physical accounts held at banks.
Operators of digital account networks maintain segregated master accounts with banking partners. In Currenxie’s case, this network covers 10 international jurisdictions and over 25 banks, the largest coverage in the world.
Currenxie is able to issue unique account details linked to these segregated accounts, complete with IBANs, SWIFT codes, and everything needed to accept and route payments for individual clients.
With modern interfaces, online applications and 24/7 access, digital business accounts offer huge advantages over the cost and complexity of opening and maintaining traditional commercial bank accounts in multiple countries. To discover more about why new business owners are choosing digital accounts, head here.
The Top Benefits of Digital Business Accounts
- Set Up Convenience: Digital has made the world easier to navigate. Business owners from across the globe can easily open a digital account from the comfort of their own offices. The entire onboarding process can be conducted online with a few simple clicks, and with no physical presence needed. Identity verification is usually digital — no trip to the bank required. As soon as the account is approved, cross-border, multi-currency remittances can be conducted straight away.
- Lower Fees: There are significant costs involved in opening, maintaining and closing traditional bank accounts, as well as expected minimum balances and initial deposits. For many new and small businesses, these hefty fees aren’t always in reach. However, without the overhead of physical branches, fintech providers offer lower fees, no minimums, and free account setup. Clients are typically only charged nominal transactional fees for payments. They also tend to offer more competitive foreign exchange rates, whereby clients can save up to 8x more than traditional banks.
- Fast Approval Process: In some cases, it can take banks months to approve business bank accounts due to strict legalities and regulatory requirements like Know Your Customer (KYC) and Anti Money Laundering (AML) compliance. While these same due-diligence checks are also conducted by fintechs, thanks to their use of modern technology and processes, they usually take far less time with some fintech organisations like Currenxie approving account requests in as little as 48 hours.
- Expanded Reach: Enabling businesses to transcend borders relatively seamlessly, the best digital business accounts offer multi-currency solutions that allow SMEs and startups to make and accept payments in a range of different currencies and countries. By expanding their customer base across different global marketplaces, small businesses become more resilient to change or disruption in a single market.
- Enhanced Efficiency and Control: Enabling funds to be managed through a single account as opposed to operating different physical accounts for separate markets, digital accounts offer increased efficiency, visibility and control of funds. Fewer accounts results in fewer associated fees, which means business owners can reinvest more in growth. Integrations with leading cloud accounting providers further enhances the efficiency offered by these accounts.
- Independence From Office Hours: Unlike traditional banking where one has to visit an actual branch at set opening hours, digital accounts are available 24/7 via the web or mobile apps. This is especially attractive to business owners who’ve incorporated their companies online in other jurisdictions from which they reside, and may work across not only large distances but various time zones.
- The Digital Customer Experience: Today’s digital customers have high expectations, demanding that the services they use are fast, personalised and available across multiple channels. While some incumbents are working hard to modernise their banking technology features, fintechs are typically streets ahead when it comes to user experiences.
- Personalised Customer Service: No-one likes waiting. Most business owners crave efficiency, simplicity and ease — especially when it comes to their finances. You won’t spend hours dealing with automated phone replies when dealing with a fintech. In-app support, self-help and chat support are core to the fintech philosophy.
- Advanced Technology: As digital-first companies, fintechs are built on technology that is more scalable and faster to upgrade. Traditional banks that are still bound by legacy infrastructure usually have to move slower when delivering new features for their customers.
- Environmentally-Friendly: In a world where businesses are overhauling operations in a bid to become more eco-friendly, the use of digital business accounts can help companies reduce paper transactions. They also eliminate driving to and from physical branches. Adopting a digital business account can help your company’s commitment to sustaining the environment.
Discover more and sign-up for a Global Account today.