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About The Author: Hanna Shnaider
PhD in Philology | Passionate About Modern Technologies | Bringing Digitalization Towards the Business
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7 Important Ways Banks Serve Their Small Business Clients - 2024 - 9

Small businesses play a crucial role in driving economic growth and innovation in their localities, but they often face myriad challenges—including accessing the right financial services. When partnering with traditional banks, these businesses frequently encounter roadblocks that hinder their potential for expansion. 

Entrepreneurs who run small- or medium-sized enterprises (SMEs) or startups likely dread having to deal with cumbersome account management and high fees from banks. Some may also associate the traditional banking system with outdated practices. As a result, these banking clients have sought alternatives to overcome these challenges and find financial partners that better cater to their unique needs.

Neobanks and digital banks have since risen to this challenge by bridging the gap between small businesses and their financial aspirations. Here’s a list of how these modern online business banking providers effectively respond to the needs of small businesses:   providers effectively respond to the needs of small businesses:  

1) They Offer Streamlined Account Management

A small business will often grapple with the complexities of managing its finances, especially if it’s partnered with a traditional bank that requires staff to visit physical branches or navigate cumbersome online interfaces. Modern digital banks address this issue by offering streamlined account management through user-friendly mobile apps and online platforms. 

These financial organizations typically have apps with intuitive interfaces that allow users to check their balances, review their transactions, and execute key financial tasks no matter where they are. The level of convenience that these small business banking online providers offer can significantly reduce the administrative burden on their partner SMEs and startups. This, in turn, frees up time and other resources that entrepreneurs and administrators can allocate to growing their businesses. 

2) They Promise Faster Account Opening

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Opening a business account with a traditional bank, the traditional way, can be a lengthy process—one that typically involves extensive paperwork and multiple in-person visits. This is not the case when dealing with digital banks, neobanks, and legacy banks that have made it a point to modernize. These financial organizations expedite the said procedure by offering quicker and more straightforward account opening methods.

For instance, there are small business banking apps that promise an account creation process that’s finished in minutes. With the ability to open an account in this way, a small business can avoid the hassles they fear and gain faster access to essential banking services. The latter, in particular, is quite valuable if the business needs to begin operations promptly or take advantage of new opportunities while they have the momentum.

3) They Offer Lower Fees for Small Businesses

Many small business entrepreneurs dread going to banks due to high account fees and transaction charges, which are sure to cut into their profit margins. But they can save on such expenses by looking for banking partners that cater specifically to startups and SMEs. Some traditional banks have accommodating programs for small businesses, but the latter can also turn to neobanks and digital banks for lower fees and reduced account maintenance costs. 

It’s not unheard of for online business banking Philippines providers to waive monthly fees for maintaining a deposit account. Digital banks often promise reduced transaction fees as well, particularly for electronic fund transfers. These cost savings can be pivotal for small businesses, allowing them to decrease their overhead expenses by a significant amount and to allocate their modest budgets more efficiently.  

4) They Help Small Businesses Become More Data-Driven

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Knowing how challenging it is for small businesses to manage their cash flows, many modern banks now utilize advanced analytics features and offer their SME and startup clients real-time transaction notifications and insights. Such features enable small businesses to stay on top of their financial activity and ensure that they have accurate and up-to-date information about their transactions. 

A small business client who ties up with the right provider will eventually become smarter and more data-driven about their financial decisions—a quality that can help them compete against their larger counterparts.

5) They Offer Favorable Business Loans and Credit

It’s also the trend for banks to eschew lengthy loan approval processes and stringent requirements in favor of more accessible loan programs and lines of credit for small businesses. Maya Business, for one, presents small businesses in the Philippines with a variety of loan products and services that can be used to increase their capital or expand their operations. Quick loan approval from accommodating and forward-thinking banks allows small businesses to address their immediate financial needs or seize growth opportunities without extensive red tape.

6) They Offer 24/7 Customer Support

Small businesses may need assistance at any time, especially those that operate outside regular business hours or in different time zones. Modern banks have made it a point to provide 24/7 customer support through various channels, such as live chat and email as well as over the phone. 

This round-the-clock customer support ensures that small business clients can receive assistance in a timely manner and get their concerns addressed promptly. That accessibility is a must-have for SMEs and startups, as it guarantees them the support they need especially in high-pressure situations and environments.

7) They Provide Flexible and Scalable Solutions to Small Businesses

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The needs of small businesses can evolve rapidly, and they require banking solutions that can adapt to these changes. Modern banking providers like digital banks and neobanks, in particular, excel at providing flexibility and scalability to their clients, which means that the former can be reliable partners for businesses during their different stages of growth. These modern financial services providers allow small businesses to easily open additional accounts, access new features, or apply for expanded credit facilities without the hassles often associated with the old banking system.   

Ultimately, small businesses need agile and responsive banking partners to succeed. The good news is that today’s banks offer more innovative and accommodating solutions, like the ones listed above, to better empower these businesses to reach their goals.