Bye Bye Banks, Hello Future! Digital Banking For Businesses: Explained
Move over, banks. The finance system as we currently know it might soon be a thing of the past. As blockchain technology is shaking up the finance sector, soon enough the current banks might be replaced by something new.
Something bigger, more international and more innovative.
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Many businesses have already recognized the inevitable change in the finance sector and are ready to transfer to the new-age banking world that is digital banking.
Now, there’s nothing wrong with the traditional form of banking, per se, but for those working internationally or remotely in another country, the fees and the complications really start to add up.
As the traditional system of working fades away, so will the traditional form of banking.
Because, let’s face it, no one wants to go through the hassle of figuring out the best bank for overseas payments, transfers, currency conversions and so on. Especially as a business, figuring out how to pay your remote workers can be a pain.
Big names in the industry are already embracing blockchain technology and are focusing on value. According to the chairman of Wall Street Blockchain Alliance –
Internet gave us powerful ways to share and access information. But Blockchain now gives us a powerful way to share and access value.
The way blockchain works, as a digital ledger, sharing and accessing value becomes easier than ever.
And if banks can’t keep up with the times, adapt, be useful, and communicate their benefits through financial marketing, while competing with the new and innovative ways of providing value (such as cryptocurrency and digital solutions), consumers will switch to a service that can.
The same applies to the current banking system.
So, with that said, here is a brief overview of some of the digital banks out there you might want to switch to as a small business owner.
Revolut
Revolut is a digital UK bank that launched in 2015 with the aim of “ refusing to settle”.
At its core, Revolut’s main product is a banking payment card that prides on adapting to your needs.
What this means is that they offer low-fees when spending money abroad, a fee-free global spending at the interbank exchange rate, cryptocurrency trading accounts, and many other financial services.
They offer 3 types of accounts: Standard (free), Premium (€7.99/m), and Metal (€13.99/m), targeted for personal individuals.
And, they also offer business accounts which focus on small businesses.
The difference is that a business account offers multi-currency accounts, instant money transfers, free international money transfers, syncing transactions into your favorite accounting platform and much, much more.
Transferwise
You might have already heard of Transferwise since it’s one of the popular methods to get paid as a freelancer, but did you know that beyond sending and receiving money – they also function as a full-blown digital bank?
Transferwise currently offers 2 options:
A borderless account – which boasts to being 8x cheaper than high street banks and holds and converts 40+ currencies.
And a business account for SMBs, as a better alternative to international banking accounts. The business account is ideal for those dealing with clients all over the world.
Atom
Atom Bank is UK's first app-based digital bank that launched back in 2014.
What makes Atom different from the other banks is that they give their customers a unique and personalized brand. Meaning, they get their own bank, their own logo, their own color palettes and more.
They’re mobile-first, hip, easy-to-use, and have a flair for design.
Monzo
Monzo is another digital UK bank with more than a million customers using their debit cards and an app that lives entirely on your phone.
Monzo is for those who prefer things simple – a physical Mastercard and a feature-packed app full of many benefits.
Tide.co
Tide.co is a UK-based, mobile-first banking service targeting small and medium enterprise customers. Though Tide launched in 2017, they already have more than 35,000 customers and passed £1bn in transactions in March.
N26
Finally, N26 is a German direct bank founded in 2013 that offers their services throughout most of the Eurozone. N26 offers a free basic current account and a Debit MasterCard for their customers.
Starling Bank
Last but not least, Starling Bank is a UK digital mobile-only challenger bank founded in 2014. They wanted to build a product that made money management simple.
Conclusion
All in all, digital banks are still in their early stages. However, what we’re witnessing now is a new and innovative way to manage your money.
The future of the banking industry will depend on convenience and providing value. This is something the current banking system struggles to provide.
Most, if not all, of the current digital banks already provide little to no fees, instantaneous notifications, quick sign-ups and more. All this and more that can be done from your mobile phone.