After the recent slump, the opening of bank accounts is bouncing back. This is helped by the surge in startups and the increased number of households holding bank accounts. Disruptive banking technologies and the rise of the new bank are creating a wonderful opportunity for new financial services for businesses and private customers.
Estimates show that by 2024, the US will have 47.5 million digital-only bank account holders. The business models of banks make them cumbersome compared to the new fintech operations which are based on the cloud, can scale on-demand, are light on assets, and are legacy-free. The result of these developments is that traditional financial institutions like Bank of America, Chase Bank, JP Morgan, and Wells Fargo are scrambling to adopt the latest banking trends so they can capture the growing number of banking consumers.
Business owners and banking trends
Smaller business owners often feel that they are unseen by the banking system. Then again, larger banks are slow to effectively make the changes whenever new government regulations and guidelines are issued.
When it comes to their business banking needs, business owners want more than just traditional banking services. Besides credit cards, debit cards, business savings, business checking accounts, and merchant services, they demand cash management strategies, financing options, lines of credit, and fast access to business loans.
They also expect their banks to offer reliable business online banking solutions, allowing them to access their bank accounts 24/7, even with a mobile banking app.
This means that banks must quickly adopt the latest banking trends. This is how the banking landscape is changing:
Business owners are relying more on their electronic devices than ever for all their banking services, including opening a bank account. The convenience of this has resulted in a decline in branch visits and a demand for expanded mobile banking features.
The time- and cost- savings resulting from online banking benefit both the customer and bank. However, digital bank clients have an even greater cost-saving because these banks run on fewer expenses than a traditional bank with brick-and-mortar branches.
Financial Data Consolidation
The innovation of Open Banking is being adopted by banks globally. This is made possible by API (Application Programming Interface), allowing software applications to communicate between them. What this means for banking clients is that they can access and consolidate their financial data for an all-inclusive banking experience.
AI and Increased Personalization
As more people use their cards and digital payments, there is a decrease in transactions made with hard cash. Digital transactions are easier for banks to process and analyze. With the use of AI, banks have access to insights that allow them to offer tailored financial services for their clients.
In the past, the time required to get a loan was prohibitive for most businesses. Today, both traditional and digital banks have ensured a lending revolution, with clients getting an answer within 5 minutes and the money in 24 hours. This system of digital lending offers banks and their clients increased efficiency and time savings. For the banks, it reduces their credit risk.
Comparing Business Bank Accounts
Every business relies on a business bank account to ensure its limited liability protections are effective. For small businesses in the US today, the choice of banks is vast. Every business owner needs to decide which features allow them to run their business most efficiently.
Several banks have local branches in or near most neighborhoods, making cash deposits easy for businesses that handle more cash. Chase Bank and US Bank are popular traditional banks with many convenient branches. For smaller startups looking for a good no-fee bank, US Bank’s Silver Business Checking Account is considered a great option by many reviewers.
On the other hand, some businesses prefer the services of a reliable online bank because of minimal cash transactions. In this case, it appears many consumers prefer BlueVine since the online bank does not require a minimum balance, has no monthly fees, or has non-sufficient fund fees.
Funding is vital for most businesses, and Wells Fargo is known as a banking institution that specializes in Small Business Administration Loans. The bank also has numerous branches and offers lots of flexibility.
Overall, business owners expect to pay lower fees, get higher interest, have fast access to loans, and have excellent customer service.
The Really Useful Information Company (TRUiC) makes it easy to compare banks according to the type of business, needs of the business, bank requirements, and other perks offered.