1. Osome Blog Singapore
  2. 5 Benefits of a Digital Business Account vs. Traditional Bank Account

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

Author Osome Content TeamOsome Content Team

5 min read
Incorporation

In an increasingly digital world, the way we bank is changing. Digital banks are probably something you may have heard about while thinking of setting up your business in Singapore but wondering how they can help you run your business better.

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

In an increasingly digital world, the way we bank is changing. Digital banks are probably something you may have heard about while thinking of setting up your business in Singapore, but wondering how they can help you run your business better. Read this article to learn more about how these innovative new platforms can improve your business’ finances, compared to a traditional business bank.

What Is a Digital Bank?

You 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.

  1. 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.

  1. 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.

  1. 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.

  1. 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

It pays to set your online bank accounts up correctly in the first instance, to avoid any future hassles.

  1. Set up two-factor authentication, and ensure a secure password

A business bank's digital identification system will probably set up two-factor authentication, much like your Gmail or ATO logins. By following this simple process, you can control who has access to your account. You might receive the authentication via SMS, email, your app, or a specific authentication app on your mobile device.

We shouldn't have to be reminded of it, but we do: set secure passwords for your online bank accounts. All your accounts should have a unique password, utilizing numbers, symbols, and different cases.

A password manager is great for organizing your passwords, but taking the time to write a good password is one of the first lines of defence against fraud.

  1. Invest the time upfront to set up your account

Get the most out of your digital business bank account by setting up all the necessary users beforehand, with the necessary levels of authority. Next, determine which banking integrations you already use, and which ones you should use, and ensure they are compatible with your digital bank account. This will ensure your digital business account runs smoothly from the start.

If you want an even better way to manage your digital banking, consider working with Airwallex.

About AirWallex

Airwallex is making digital business banking easy with our Global Business Account. You get all the benefits of a digital business account, but with the added benefits and features that are built for a global scale, all with zero monthly fees and no signup fees.

With Airwallex, businesses can:

  • Create a digital business account, and get up and running on the same day
  • Open a foreign currency account in up to 23 currencies, with zero monthly fees
  • Make unlimited same-day international payments and transfers
  • Save on FX with low, transparent pricing. You pay only 0.3% or 0.6% margin on top of the interbank transfer rate—far better than you receive from the big banks
  • Use multi-currency virtual payment cards to Empower your team to make purchase decisions while still maintaining control
  • Streamline your purchasing and accounting, by integrating your payments with global online marketplaces like Amazon, eBay, Shopify, and Paypal, or directly to your Xero account, in multiple currencies

Ready to see the benefits of digital banking, without the digital bank? Open an Airwallex account today to get started.

Subscribe

Tips to run your business smarter. Delivered to you monthly.

By clicking, you agree to our Terms & Conditions , Privacy and Data Protection Policy

Related Articles

When To Know if a Side Hustle Can Be Turned Into A Full-Time Enterprise
Incorporation

When To Know if a Side Hustle Can Be Turned Into A Full-Time Enterprise

Around 1 in 3 people have a side hustle. And the number seems to keep increasing. It can most likely be turned into a full-time profitable business if you have a side-hustle. But when it’s the right time to do so?

·4 min read
How To Set Up a Singapore Holding Company From Indonesia for Fundraising
Incorporation

How To Set Up a Singapore Holding Company From Indonesia for Fundraising

One of the most common fundraising strategies for startups, especially in Indonesia, is to set up a Singapore holding company. But how exactly do you set up a holding company abroad?

·10 min read
Going Beyond The Borders Digitally: From Setting Up To Selling Out
Incorporation

Going Beyond The Borders Digitally: From Setting Up To Selling Out

We had three experts in tax, sales, and law present the webinar on how small business owners in Singapore and Indonesia can set up companies, digitize their business processes, and reach out to new customers.

·7 min read
The No-Nonsense Guide To Start an Online T-shirt Business
E-commerce

The No-Nonsense Guide To Start an Online T-shirt Business

E-commerce is the way to go, with increasingly more people doing their shopping online instead of in physical shops. Here’s a quick guide for you to start one selling t-shirts.

·6 min read
A Guide to Setting Up a Holding Company
Incorporation

A Guide to Setting Up a Holding Company

A holding company is an ‘umbrella’ or ‘parent’ company which does not provide products or services like a normal company. That’s what makes it relatively easier to set up a holding company virtually anywhere in the world.

·5 min read

Tips to run your business smarter. Delivered to you monthly.

We’re using cookies! What does it mean?