5 Benefits of a Digital Business Account vs. Traditional Bank Account

What Is a Digital Bank?

ou might think that a digital bank is the same as an online bank account, but it’s not merely that. The banking organisation operates fully online with no physical locations or infrastructure. Therefore, your banking activities and account management are done completely online using the organisation’s website or app.

Digital banks are moving fast to take advantage of the rise of technology and building services and features made for today’s digital consumers. Since they have no physical presence, they reduce their overheads and have competitive pricing.

What Are the Differences Between Digital Business Bank Accounts and Traditional Business Bank Accounts?

Digital banks open and maintain relationships with their clients online. All your records, communications, records of transactions and money exist only online.

What does this mean for you? You access self-service for your account through the internet, and not with a person in the real world like a traditional bank with a bank teller. As such, you don’t have to provide hard copies of documents, which helps you reduce paperwork.

Top 5 Advantages of a Digital Bank Account for Business

There are plenty of things to love about a digital business bank account. We’ve ranked the 5 key benefits that make digital business bank accounts an outstanding choice for your finances.

1 Open a Digital Bank Account from Anywhere, at Anytime

With a digital bank account, you can open a digital business account through your app anywhere using just your mobile phone, tablet or laptop. You just need some key personal details and your account will be activated. There is no need for you to visit a branch, speak to an advisor, or even have physical copies of your identification checked.Getting an online bank account with a digital bank is an entirely online process that can be done at any time of the day. Current banks are open during hours which may not be friendly to all businesses. Company directors don’t have to plan their work with their banks around the usual operating hours of a bank or sneak out during working hours. No queue-ing up is needed too.

2 More Self-Service Functionality

Since digital banks are designed with a digital experience in mind, And, as digital banks are designed to be used online, they’ve made the user experience easier, too. All the features you want from a bank—including customer service—will be readily available on the app or browser interface. You don’t have to speak to a human face-to-face, but help will always be there when you need it, from a human expert, via chat or call.

3 More Self-Service Functionality

Since digital banks operate fully online and have little physical presence in the form of branches, digital banks need fewer overheads than traditional banks require to operate, such as less, or even no rent, fewer staff salaries, fewer costs on office equipment and utilities.

Since money transfers, bill payments and other financial transactions are completed digitally, the administration work that is usually done by a human is removed.All these translate to cost savings for the consumer with lower account fees or even no account fees at all.

4 Enhanced Security

As digital banks are built with digital needs from the start, the element of security has also been taken into account. With tools like two-factor authentication, you’ll see when someone unauthorized tries to access your account, so you can be aware of the possibility of a threat. As you're likely to bank through your smartphone, two-factor authentication will be a breeze.

5 Better visibility and easier reconciliation

Due to the nature of digital banks, they run on code which can be integrated into the code of other platforms like cloud accounting software such as Xero, digital signature and contract management systems, or money lending and international trading platforms.

Banks that operate digitally simplify how we bank, and offer opportunities to merge financial worlds into one simpler process. When your integrations are synced to one another, your reconciliation process can be automated. Working with cloud accounting services like Osome makes this possible too.

How To Make the Most of Your Online Bank Account