As the startup ecosystem is evolving, with this, dependency on stable business banking services to handle their financial operations has been ever-increasing. Streamlining financial operations for a business is essential. Keeping a track of incoming/outgoing transactions, operational expenses, salary payouts, funds storage, etc are the major requirements of a business.
Enter Business banking.
Here’s a tell-all piece on Business banking and the various business banking services that it is offering today:
What is Business Banking?
Business banking is a type of financial service specifically designed to meet the needs of businesses, including small and medium-sized businesses. Services offered by business banks include checking and savings accounts, loans, credit cards and other banking services. Business banking services are often tailored to the specific needs of a business, such as providing financial advice and offering specialized products and services.
Services Offered by Business Banks
Let’s have a look at the services offered by Business Bank.
1. Business Checking Accounts: A business checking account is a must for any business. This type of account allows businesses to easily manage their finances and make payments to vendors and suppliers.
2. Business Savings Accounts: A business savings account is a great way to save for future expenses, such as taxes or capital investments.
3. Business Loans: Business loans can provide businesses with the capital they need to grow and expand.
4. Business Credit Cards: Business credit cards offer businesses a way to make purchases and manage their cash flow.
5. Merchant Services: Merchant services allow businesses to accept payments from customers using credit cards, debit cards, and other payment methods.
6. Investment Services: Business banks can help businesses diversify their portfolios with a variety of investment products, such as stocks, bonds, mutual funds, and more.
7. Business Insurance: Business banks can provide businesses with insurance products to protect them from potential liabilities.
8. Online Banking: Business banks offer online banking services that allow businesses to easily manage their accounts and perform transactions.
Importance of Business Banking for businesses
Business banking is important for businesses for a variety of reasons.
➡️First, it provides them with access to financial services and products that can help them manage and grow their business.
➡️With a business banking account, businesses can access loans, lines of credit and other financial services to help them run their business more efficiently.
➡️Additionally, business banking accounts provide businesses with the ability to manage their finances more easily, as they can track transactions, make payments and transfers, and track expenses.
➡️Finally, business banking also provides businesses with a secure, reliable way to store their money, which is essential for any business.
Characteristics of a Business Bank
1. Financial Expertise: Business banks offer specialized services that provide financial expertise and guidance to businesses.
2. Liquidity: Business banks offer products and services such as lines of credit, term loans, and other liquidity solutions.
3. Business Credit: Business banks are able to provide business credit to businesses for their operations and growth.
4. Risk Management: Business banks provide risk management services to businesses such as treasury management services and foreign exchange services.
5. Business Insurance: Business banks are able to provide businesses with insurance services, such as business interruption insurance.
6. Advice: Business banks provide advice and guidance to businesses on how to best manage their finances and investments.
With the evolution of the fin-tech domain, Neobanking has been the talk of the town. A Neobank is a digital bank that does not have any physical branches and is entirely online.
We can think of a neo bank as a financial service provider that caters to today’s tech-savvy consumers. Without a license of its own, a neo-bank leans on bank partners to provide bank-licensed services to its customers.
Imagine automating all your vendor payments, tax payments, Compliance & Payroll. Seamless, right? Neobanks are known to make money movement simpler and to automate the majority of the financial operations of a business. Hence the rising popularity.
Read more: What is Neobanking? – Everything you should know
How does Neobank help with business banking?
Often, businesses have to deal with tedious, never-ending processes that involve disbursals and payments. These processes result in hours and hours of manual effort due to buggy software, complex infra systems, dependencies on multiple portals and many other reasons. This complexity may further grow into fiddly money movement views.
Business banking via neo-banks helps solve all these problems.
- Easy Account creation: This is a breeze since neo-banks are completely online; they don’t have a storefront. All it takes are a few minutes and a couple of simple steps on a smartphone
- Flexible Money Movement: Neo banks provide a 24*7 money movement facility unlike traditional banking
- User-Friendly UI: With friendly UI, you can provide the best user experience to your customers
- Simpler maker-checker: Banks usually have a complicated maker-checker system and have a user restriction too whereas Neobanks would allow multi-users and easy multi-level approvals.
- Mobile Application: Neo-apps help manage your finances on the go by providing you with an overview of your expenses and a savings goal that matches your needs
- Smart Dashboard: Make, track, control, and analyse all forms of money movement, all from a unified platform. You can also track and manage money movement to vendors, customers, employees, and more, with the in-depth financial CRM
- API: Use APIs that are easy to deploy and integrate banking into payments and accounting infrastructure
- Smart Insights: Make informed, impactful business decisions with off-the-shelf analysis with smart insights/reports on business performance.
Neobanking platforms have collaborated with banking platforms to provide a Current Account with all benefits of smart insights, automated money management, smart dashboards and so much more. Hence making Business Banking smarter.
Suggested reading: 2020 – The Year for Neobanking in India
RazorpayX – Supercharge your Business Banking
RazorpayX currently hosts 90% of India’s leading tech start-ups.
RazorpayX was born out of the need to deliver the best financial experience for merchants. It reimagines how businesses manage money flows and simplifies banking for Founders, CXOs Chartered Accountants and finance professionals.
RazorpayX is a full-stack suite that supercharges current accounts
- which Provides end-to-end automation with powerful features
- like Automated Accounting, OTP management, Maker-Checker Flows,
- Corporate Cards with 20X higher limits
- Automated Vendor Payments
- Payroll – India’s ONLY payroll with Full compliance automation, Employee Insurance management and TDS filing) and so much more
What is Business banking?
Business Banking provides banking services such as loans, credit, current accounts, financial/advisory services and so much more that are specially designed to meet the needs of a founder.
What is a Neobank?
A Neobank is a type of digital bank that does not have any physical branches and is entirely online.
They are known to make money movement simpler and to automate the majority of the financial operations of a business.
What is an Open Bank?
Open Banking allows third-party payment services and other financial service providers to access banking transactions and other data from banks with the customer’s approval. It enables secure interoperability
What are some of the best Neobanking platforms?
With the rising popularity of neobanking, there are more and more such new-age banks every day.