In a technology-driven society, everything that can be taken online undergoes a digital transformation. One of them is banking.
Digital banking is an umbrella term that refers to financial and banking services that can be done on the Internet, such as checking your bank accounts through a web browser or a mobile application, transferring money from one account to another through the Internet, online payments, and so on.
The improvements in the field of digital banking have made it more mainstream. Now, instead of going to the bank to make transactions, you can just log onto your account through your computer or phone and do everything there.
The ease of use of digital banking can makes it a great option for small-business owners.
Benefits of Digital Banking on Small Businesses
Some small-business owners may hesitate to opt for digital banking, especially if they are not used to it. But understanding its benefits can help convince them.
Managing Finances Is Easier
Small businesses have limited manpower. Often, one person fulfills tasks that are supposed to be distributed to two or more people. Small business owners also usually do not have the resources to implement a complex financial system.
Digital banking can help these owners manage their finances with ease. With digital banking, everything has a trail. So all transactions can be easily tracked. This will make financial management easier to execute despite limited manpower.
Since financial transactions are easy to reference through a browser or even a mobile app, small-business owners can also easily analyze their expenses. This way, they can make adjustments in certain areas to reduce their costs and save more money.
Individual users prefer digital banking because it’s convenient. The same is true for small businesses. First, a small-business owner can send money to their vendors or receive money through customers 24/7. Even depositing checks can be done via mobile bank applications now.
The ability to do everything online is helpful to busy small-business owners. They no longer need to drop by a physical bank branch at a certain time of the day, which means they’ll be able to manage their time better. Digital banking is also a great substitute for checks and cash. Business owners can pay their staff by wiring their salaries straight to their accounts.
And as mentioned earlier, a record of financial transactions can be accessed online. Thus, a staff member can easily find a certain transaction by using the search tool in a bank’s website instead of skimming through piles of documents.
These days, social responsibility in relation to the environment is expected not just from big corporations but small businesses as well. In one survey, 65 percent of the respondents said that they wanted to support brands that push for sustainability.
Businesses can practice sustainability in many ways: use eco-friendly packaging, prohibit the use of single-use plastic materials, recycle, and so on. But apart from these publicized methods to save the environment, small-business owners can also be eco-friendly in the way they manage their finances through digital banking.
Small-business owners will use less paper if most of their financial transactions are executed online. Of course, they can still keep a few essential documents physically on file. But the need for paper documents is greatly reduced.
Even though digital banking has been on for years, many still doubt its safety and security. This is because as technology develops, cybercriminals also get more creative. However, financial entities put in place the best security measures they can, so digital banking is safe and secure for small businesses.
A small-business owner’s bank account is encrypted and won’t be easy to hack into, especially if they use a strong password. Also, banks implement a two-factor authentication method for most financial transactions. This method mitigates, if not eliminates, security risks so that business owners can run their businesses smoothly.
Digital Banking Is the Future
These days, many places are starting to go cashless. People can pay for goods using credit cards and mobile wallets, limiting their interactions with other people and thus lowers their risk of COVID-19.
Thus, soon, digital banking will no longer be just an option. It will become essential for small-business owners. Thus, as early as now, they should become familiar with it and start using it, if they haven’t already. Small businesses should allow their consumers to buy from them through online or mobile banking. And they should also consider transacting with their vendors or suppliers in the same way.