Many traditional banks are already worried about the evolution of financial technology, and mobile banking in particular. In the old days, banks relied on occasional in-person visits or phone calls to bank tellers for account updates, suggestions, and maintenance.
Every one of these touch points was an opportunity to sell a new service. And because that was just the way things were done, customers didn't really mind.
But with technology playing an even bigger role in personal and business finance in recent years, things are changing quickly.
Money management apps and online banking now provide more convenient services and user-friendly features. With unique perks, such as mobile app compatibility, transactional improvements and efficient ways to monitor cash flow, there is no doubt that this method of banking can help a business scale and grow financially.
These are all things we’ve come to know and love in our private lives, so why wouldn’t companies follow suit? It's time to embrace new tech - especially in old fashioned industries.
Here are several ways in which your business can take advantage of what mobile banking has to offer.
What is mobile banking for businesses?
At heart, the term “mobile banking” really just refers to the ability to for bank customers to manage their services on the go. In particular, customers should have access to a smartphone app, and will almost never need to visit a physical bank branch.
Today, banks exist with no physical branches at all. All banking is done online and via smartphone. With new technology and evolving financial regulations, there’s good reason to believe that this will become more of the norm.
Which means it should become normal for companies too. If you can have faster banking - from anywhere - then why not?
What makes modern banks different from traditional ones?
Although traditional banks have apps that are associated with their institution, there are usually differences in features. Both are useful when on the go, downloadable on an Apple or Android smartphone or tablet.
Compared to traditional banking apps that offer the option to pay bills online, view checking account information, and to transfer money from one account to another, more modern banking apps offer all of this along with newer, improved features.
It's built to be:
- More personalised: Apps use the information you provide to tailor your experience and offer smarter solutions to you problems.
- More reactive: As we'll see, you have the data you need in real time, and you're not reliant on the monthly bank statement.
- Easy to join: This is one of the clearest benefits. Older banks usually require a lot of documentation and admin, which is often simply a waste of time.
- Quick to improve: Because these apps are designed to evolve and improve, you're always receiving new features and better service than you had when you joined.
Signing up for a mobile bank account also usually requires little to no fees, and while you’re using an automatic savings option, you can bypass overdraft fees and service fees which usually cost users of a more traditional bank close to $300 per year.
Key benefits of mobile banking for business
There's a reason that mobile banking has caught on for private people. In fact, there are a handful of reasons. And these same factors apply to companies too - it's just taking a bit longer for businesses to figure them out.
1. Receive account updates in real time
Plenty of companies still rely on monthly account updates to check their account’s health. But mobile banking apps can now send account notifications whenever an important update or change occurs.
These personalised alerts help business owners and finance teams stay up to date with the revenue and expenses associated with their business. Simple enough - and highly valuable.
But these banks can also offer unique features not offered by traditional banks. For example, you can also automatically contribute money to a savings account, or receive certain payments while also avoiding bank service fees.
These unnecessary costs can sneak up on businesses quickly, so it’s important to consider an option that reduces your chances of paying more than expected.
2. Make deposits and receive payments quickly
Managing cash flow is an important part of running a business. And having a resource that creates a simple and quick money management structure may help you business receive and make payments on time.
Because a mobile app lives on your smartphone, and most people keep a mobile device on them likely at all times, founders and finance leaders can efficiently make deposits or receive payments with a few taps of their thumbs.
Managing payments through a mobile banking app makes budgeting available from anywhere. If business leaders travel for a business meeting or conference, they’ll have an immediate way of tracking company expenses and payments on the go.
3. Review transactions made with company cards
And speaking of expenses, mobile banking also keep you on top of what’s being spent in real time. Any dollar (or pound, or euro) spent through your debit or credit cards will automatically show up on your smartphone app.
You’ll have transactional information and a message listing what the user spent money on, along with the exact amount spent. This helps finance teams stay on top of spending, and also helps to ensure that no credit card fraud or other unpleasant surprises occur.
On a happier note, it also helps team members remember what they bought. They can check in quickly to see purchases from the last day, week, or month, and everything is nicely itemised automatically.
If there is an expense that seems unfamiliar, a review of transactions that’s presentable and easily accessible on a smartphone can make it easier for a user to stay on track with where they’re allocating their finances.
4. Improve efficiency and productivity
Taking advantage of technology is a must for businesses that want to grow and scale faster. In particular, the more you can move away from individual, manual processes and choose automation, the more scalable your business will be.
Mobile banking helps you do this by removing geographical limitations. If you're not chained to a bank branch, there are no hurdles as you change offices, open new country headquarters, and more.
Banking apps are also designed to be team-friendly, which isn't always the case for older banks. Executives and financial teams can all have access to the same account. Each person can receive the same updates and financial information on their own smartphone or tablet.
When you combine the way that this modern technology simplifies banking, with the easy ability to work as teams, you have a simple solution that will scale with your business for years to come.
Get your financial systems up to scratch
Mobile banking is a wonderful evolution in what has traditionally been a slow-moving industry. Banks are paying closer attention to what their clients really want.
It's also becoming much easier to leave a bank you're not happy with - something banks themselves know all too well.
So switching your company to a mobile bank is often a great option. Particularly if you also find key ways to upgrade your own internal processes. More automation and modern systems make the business more efficient, and ultimately more profitable.
And the great part is, these systems already exist. They're easy to incorporate, and usually ready to use right out of the box.
For more examples, take a close look at this guide to tools for CFOs: