Could your business be wasting precious capital? One indicator of this is if your business still depends on sending paper invoices and receiving payments in monthly paper statements. This is also true if you still insist on writing paper checks. To save on your business capital, it is time you turned to online banking. Online banking is far much more convenient and efficient than the traditional methods of banking. Online banking is a sure way to keep track of income and expenses, all from your mobile device or PC.
A recent survey conducted by an industry expert confirmed that online banking has revolutionized the way people manage their finances. The research, which involved a number of European countries, further found out that many individuals/businesses had reported an increase in profitability because of adopting online banking methods. For example, the survey revealed that about 30% of people in France are in less debt as they can now closely monitor their finances. This figure stood at 22% in the UK, and 20% in Germany.
Close to 75% of the respondents in the survey confirmed that online banking helps them to keep track of their spending. A further 45% of those interviewed said they rely on online banking apps to budget better. Online banking methods have thus been directly credited with helping people manage their financial transactions better. It also helps them to increase their awareness of their financial acumen.
How Online Banking Helps in Managing and Increasing
Applying online banking methods comes with diverse benefits for your business. Here are 9 key benefits associated with online banking.
1. Online Banking is very Convenient
Online banking gives you the power to check balances, make payments and transfer money all from the convenience of your home or office. As long as you know how the various financial transactions are conducted, you can do the same transactions via the internet. It is no different from doing it with a teller, face to face. However, it is by far more convenient. What is more, it is possible for you to have your online baking method customized. Your banking professional advisor will be more than willing to guide you on the best system based on your business model.
2. You Bank Based on Your Schedule
You no longer have to sweat it out in traffic jams as you try to beat the bank’s closing hours. With online banking, you transact when it is most convenient for you. If you would like to make a transfer in the middle of the night, you can just go ahead and do it. You do not have to consult
anyone or make any appointments. All you need is to turn on your online banking app and carry out the desired transactions. You can transact 24/7, from anywhere across the globe. In other words, you will have your bank in your hand.
3. Online Banking Helps in Managing Costs
Transacting finances on paper can be quite costly. To start with, the paper on which financial statements and checks are printed is costly. In addition, the processing of paper checks wastes a lot of time, effort, and money.
On the other hand, EFTs (Electronic Funds Transfers) can be seamless, fast and cheap. With EFTs, you will be able to carry out your transactions at a fraction of the time and cost than traditional methods use. In addition, online banking allows you to carry out a variety of functions while saving on labor costs.
4. Online Banking Increases Efficiency and Productivity
Online banking methods allow the users to automate payroll, monthly bills, and other recurring expenses. This automated system makes financial management easier and lessens incidences of penalties for late payment. Paying the bills electronically enables you to save time and money, and to increase productivity.
It is, therefore, important that you identify the online banking methods with the features that are most relevant to your needs. This will depend on the number and diversity of transactions you expect to conduct per day. Your banker should be able to advise you on the best system for
you. Some businesses carry out very complex transactions. Such businesses require online banking the more. In fact, online banking becomes very efficient in businesses that have numerous accounts.
A well-designed online banking method should allow cash to stay for as long as possible in accounts that bear interest. This is possible if all the concerned accounts are automated and synchronized. Automating your accounts ensures that you do not pay any penalties for late payments, and you earn the most interest from numerous accounts.
5. Online Banking Helps Manage the Security of Your Assets
The most important consideration for any traditional bank is that your money should be secure. The smallest whiff of insecurity would make customers run away in droves. The same applies to online banking methods.
Financial institutions employ ingenious data protection features to ensure that your financial assets are safe. They ensure that they are updated with the latest firewalls and software to detect and combat viruses. Banks also invest a lot in encrypted data transmission to prevent fraudsters and other third parties from intercepting your information.
Your financial advisor will issue you with the security protocols to follow as you enroll for an online banking system. Ensure that you use strong passwords to provide your accounts with adequate protection. This should include a combination of numbers, symbols, and letters. Also, ensure that these passwords are changed often. Your banker will advise you on how best to protect the online banking methods you would like to use.
6. Helps Manage Employee Access to Business Accounts
To avoid internal fraud, access to your business accounts should be limited. Not all employees should have the same rights to all the accounts. It is possible to customize what each employee can transact on the accounts when using online business banking. This goes a long way to increasing your in-house account’s security. Ensure that security updates are done whenever a new employee joins the company or an old one exits/quits.
7. Helps in Managing Account Activity
Online banking has a feature that allows you to receive alerts whenever a transaction is done on any of your online accounts. You can customize how you would like to receive these alerts. For example, you can choose to get the alerts via email or text alerts. This is an important feature in detecting and preventing potential fraud.
There is no business that is 100% hacker proof. For this reason, it is important that you consider in investing in an online banking system that alerts you when an action takes place on your account. Such a feature will allow you to keep in touch with your financial assets at all times.
8. Helps Increase Cash Flow
With online banking, payments are received immediately the goods are delivered to your customer. There is no waiting time. The deposit is done remotely, and it is instantly reflected in your business account. This, in essence, means that your business will enjoy a healthy cash flow.
To benefit from this advantage, you need an online banking method that can receive payments in a variety of formats. It should be able to accept check payments, debit card payments and payments from credit cards. Once you do this, you will soon discover how easy, fast and convenient it is to receive payments.
9. Online Banking is Eco-friendly
It is very easy to go green with online banking. This is because it enables you to use less paper, bank less paper and generally cut down on paperwork. Since you can immediately access all your financial transactions with online banking, it is possible for your firm to go paperless within a very short time. This is very important in this age of environmental consciousness.
How Online Banking Helps in Managing and Increasing
Your Financial Awareness
As noted at the beginning of this article, online banking has made many people make big strides in financial management. In addition, it has helped many to reduce debts and wastage, and increase profitability. Technology continues to be the main policy driver in the banking industry.
Therefore, it is expected that even more consumers will benefit from this revolutionary method of banking.
Online banking has made many realize that it is possible to save a lot of time. The time that was traditionally lost queuing at the ATMs or waiting in bank halls can now be redeemed. The time thus saved can be channeled to more productive activities of the business.
Although about 9.5% of people still use the traditional methods of banking, the uptake of online banking has been phenomenal. According to a reputable industry expert, there was a 72% increase in online logins in 2017 as compared to the previous year (2016).
Industry experts opine that people are taking advantage of their ability to login from anywhere, at any time to remain on top of their financial transactions. This new way of managing finances is rapidly drawing consumers to be fully-fledged users of online banking services. In fact, it is
projected that about 70% of the global population will be using biometrics to pay for products and services by 2037.
How Online Banking Helps in Securing Your Money
As more and more people turn to online baking solutions, bankers are doing everything to ensure that their financial assets are safe. According to the American Federal Reserve, over 70% of medium and large banks had significantly increased their annual budgets to fight cybercrime.
Consumers, too, have a major role to play in enhancing the security of their assets. Online banking is sometimes the target of hackers who would want to steal your data. You can easily thwart their efforts by observing the following 8 key tips:
1. Ensure that Your Account has a 2-factor Verification
One-factor verification involves the use of your password and username as you log in to your account. You can increase the security on the account by asking for two-factor verification. This involves the use of the one-factor verification plus an added element. This means that you will still use your username and passwords, plus a temporary code sent to your at the time of login.
2. Avoid Public Wi-Fi
Think twice before you connect to public Wifi. They are much favored by hackers. Once you go online in places like hotel lobbies, parks, and coffee shops, you never know who can access your information. You can use public Wi-Fi to surf the net, but avoid it for financial transactions.
For this, set up a VPN (Virtual Private Network) or do it from your home network.
3. Use Strong Passwords
A strong password is one that comprises of not less than eight characters. Each such password should be made up of symbols, numbers, and letters in both lower and upper cases. Use phrases and words that are hard for someone else to guess. In addition, do not use the same password on multiple accounts.
4. Change the Passwords Often
It is not enough to have a strong password for your online banking accounts. Change them regularly. Set up reminders on your calendar to schedule these changes. You can do these changes as often as you deem it necessary.
5. Be Wary of Unwarranted Notices
Some fraudsters send out innocent looking emails purporting they are from the bank. They ask you to click on a link in order to resolve some problem with your online account. When you do so, you become a victim of a phishing attack. The fraudsters can then access all your personal details. They will change the passwords and proceed to transact on your accounts illegally.
To avoid this, simply do not click on any links from unknown sources. Also, ensure that you report any such attempt to defraud you.
6. Learn Your Bank’s Encryption Technology
Your banker can give you some very good advice on how to keep your online banking accounts safe. Take the time to go to their website to learn the kind of encryption technology they employ. Find out how they are likely to protect you in case of fraudulent activity on your account(s).
7. Regularly Update Your Software
Ensure that your operating system, web browser, and security software are regularly updated in tandem with the latest security upgrades. Doing so helps your accounts to have a strong defense against malware, viruses and other such online threats.
8. Monitor the Transactions on Your Account(s)
Monitoring your accounts is a good way to protect yourself against unwarranted transactions on your account. Should you notice an anomaly, do not hesitate to inform your bank.
Without a doubt, online banking is the way of the future. As technology continues to advance, it will be easier for you to manage your finances better than before. It will be more convenient if you want to check your balances, see your transactions and keep track of your spending
trajectory. A good number of banks have realized the importance of this in the industry. As a result, many of them are offering the option of text banking for customers that do not have reliable internet or are unable to get a smartphone/computer.
Your employees will be able to be more productive with online banking. They will be able to achieve more for less. You will enjoy lower operating costs, increased profit margins and better overall management of your financial portfolio.
Be cognizant of the fact that your online banking system needs to be secure. This calls for you to take the necessary steps to safeguard your accounts. You can do this with a well-designed online banking system. So, maybe it is time you invested in online banking systems. Invest in a better business banking system for a better world!
Enjoy Our Content?
Subscribe to get the latest from "Everybody Loves Your Money."