10 key benefits of online banking for small businesses

January 23, 2020


Apart from individuals, even small businesses can experience a host of benefits with digital banking. Read this post to know 10 of the biggest advantages of online banking for small businesses.

The 'Digital India' campaign launched by the government in 2015 has played a crucial role in making online banking popular.

Apart from individuals, a large number of small businesses too now prefer conducting their banking transactions online. If you run a small business but are still using traditional banking methods, here are 10 of the top online banking advantages that you should know about:

1. Instant money transfer: With online banking, you get access to a range of money transfer services such as Real-Time Gross Settlement (RTGS), Immediate Payment Service (IMPS) and National Electronic Funds Transfer (NEFT). From transferring funds to making payments to vendors, you can now do it instantly within seconds.

2. Automatic bill payments: Most top-rated banks also allow you to automate bill payments and other types of regular business transactions. This helps ensure that each of your payment is always made on time. Moreover, cheque writing errors like inaccurate account details or amount errors are very common with offline transactions that can be easily prevented with online banking.

3. Anytime anywhere benefit: One of the biggest benefits of online banking is its round-the-clock access. The 24x7 anytime and anywhere access means that you can manage your transactions easily from the comfort of your office or home. The time saved could help improve productivity by allowing you to spend it on other essential business activities.

4. Tracking business transactions: You can use the Internet Banking portal of your bank to easily access all your past banking activities such as transfers, deposits, cleared cheques and more. No matter if the transaction was done last week, last month or last year, you can quickly go through the entire history with only a few clicks.

5. Easy tax payment: Thanks to online banking, you can promptly pay business taxes within minutes and get instant confirmation for the same. Some of the banks also offer exclusive tax assistance services to their corporate account holders.

6. Reduced fraud and higher scrutiny: The level of visibility that Internet Banking offers into your financial transactions also helps prevent frauds. The online banking portal functions as a single-window for all the transactions done by you, your managers and people from the accounting staff. This can help you make sure that you are always fully aware of all the transactions.

7. Complete security: Compared to cash transactions, online banking is more secure. Since the transfers are handled digitally in online banking, there is no risk of theft and burglary, which is quite a common issue for businesses dealing in cash transactions. Moreover, the risk of human error is also reduced significantly in online banking. Be it you or your staff, handling large amounts of cash is always risky. With small business online banking, these risks can be effectively prevented.

8. Mobile Banking: Apart from the digital banking portal on the web, you can also do online transactions through mobile phones. Many of the banks now have their mobile apps or exclusive online portals that can be accessed from mobile phones. So, even if you do not have access to a laptop or computer, you can still manage all of your financial transactions through your mobile phone.

9. Access a wide range of banking services: Apart from transfers, the Internet Banking portals of some banks offer a range of additional services. For instance, you can request for a cheque book or even open a Fixed Deposit (FD) account online. All of these banking activities were only possible by visiting the bank in the past. But with online banking, they can now be done anywhere and anytime.

10. Payment gateway and POS solution: Some banks also offer Point of Sale (POS) and payment gateway services to help retail businesses accept electronic and card payments. These services can also be customised as per your business requirements for enhanced convenience.

Time to go digital

The benefits of online banking for business can no longer be overlooked. If you do have a business account, activate online banking services to experience all of these valuable benefits. Digitising your transactions could help you grow your business and offer enhanced convenience and security.

You can log in to your online banking account to know more about these features and understand the different ways in which they can help your business.




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