As your business grows, your banking needs may change. If your bank isn’t offering the services you need, draining your account with hefty fees, or restricting your company’s growth, it might be time to switch to a newplatform, such as a neobank.
Switching to the right banking platform can transform your business and simplify money management for you and your employees. However, switching banks can seem challenging, especially when juggling multiple responsibilities. This is why, many businesses choose digital-only platforms that streamline their banking process, allowing them to allocate their time to other crucial tasks. In fact, a recent survey found that 86 percent of businesses now use digital banking channels due to a strong preference for digital solutions.
If you’re ready to switch banks and explore the benefits of a neo banks, learn how to switch banks seamlessly below.
Identify Your Current Banking Needs
Explore the services your current bank offers and determine what new services you need that your current bank is unable to offer. Some of the most common banking needs for businesses are dedicated bank accounts, organized cash and expenses, team spending limits, and multiple cards. When you identify your banking needs, finding a platform that checks all the boxes will be simpler.
Compare Different Platforms
When exploring banking options, you want to find a platform that offers a wide range of services. One of the first steps to take when you are changing banks is to consider the top banking products and needs of your business. For example, if you prefer an online platform, look for one with low account fees, expense categorization and multiple account options. A credible bank will be transparent about its costs to prevent you from unexpected fees or charges.
It’s also important to verify that your new bank is a Federal Deposit Insurance Corporation (FDIC) member to ensure that your money is always protected. FDIC is an independent agency of the United States government that protects customers of insured banks in the U.S. against the loss of their deposits if an insured bank fails.
Apply for a New Account
After you’ve completed the most challenging step of the process and found the ideal bank, gather all the necessary documents (government-issued ID, social security number, mailing address, etc.) to apply for a new account.
If you choose an online banking platform, you can apply for a new account with a quick application from the comfort of your home. A reputable platform that aims to streamline banking for customers will enable a fast application process that can be completed within 10-15 minutes.
Set Up Your Incoming & Outgoing Payments
Once your account is ready to use, identify all your incoming deposits and outgoing payment and set them up. Wait until your new account is set up to close your old account to ensure no delays in recurring monthly payments.
When you choose an efficient online platform that offers recurring payment features, you will save a lot of time in the future as you can manage bill payments with multi-step approval workflows and schedule recurring payments directly from dedicated accounts. It’s also important to choose a platform that offers integrations with different accounting software, such as Xero or QuickBooks Online, in order to speed up bookkeeping. Some digital platforms will simplify your business processes by requesting and securely storing payee information and W-9 forms – a feature that traditional banking platforms cannot provide.
Close Your Old Business Account
The last step of the process involves saying goodbye to your old bank account. Although you must navigate various changes while transitioning to a new platform, bidding farewell to the old platform is much simpler when you’re aware of the different ways your new banking service can help your business grow.