With the rise of fintech, there are now several banking options and solutions available to businesses. Let’s delve into them!
What is 'traditional' corporate banking?
- Sending and receiving payments
- Making deposits
- Opening business savings accounts
- Applying for business loans
- Lloyds Banking Group
- HSBC holdings
- Santander UK
- National Westminster bank
- Nationwide Building Society
What are the benefits of traditional business banking?
- In-person support: a huge benefit of traditional banking for businesses is the ability to speak to a customer service specialist in person for real-life support.
- Access to products and services: as well as transactions, traditional banking gives its users access to additional products and services such as loans and savings accounts.
- Access to ATMs: traditional banking infrastructure and its physical presence means users can access local ATMs to service additional banking needs.
Traditional banking: the cons
- Bureaucratic application processes.
- Limited support due to physical branch closures (earlier this year, several bank branches across the UK closed down, including the likes of Nationwide and Lloyds Bank.)
- Costly transaction fees.
Enter the bank challengers
As the global business landscape develops with the emergence of new trends and technologies, business needs and operations also continue to evolve. Corporate banking is high on that list however, traditional banks are no longer meeting the needs of many modern businesses.
What services are available with alternative banking solutions?
- Multicurrency accounts with 3S Money, businesses can access over 65 currencies and transact to over 190 countries
- Local IBANs
- Merchant services such as point-of-sale systems and e-commerce payment gateways.
- Invoicing and billing tools that can be integrated with other accounting software.
- Foreign currency exchange and international transactions services.
- APIs and integrations, such as accounting tools, CRMs, and e-commerce platforms.
- Peer-to-peer lenders
- Electric money institutions (EMIs)
Why bank challengers are great for SMEs
- Fairer access to funds: alternative banking solutions give financial access to those who have been marginalised by traditional banks.
- Convenient: due to the nature of EMIs and fintechs, gone are the days of business owners having to physically travel to branches to access services. They can head straight to mobile banking apps or online banking, freeing up time to focus on other areas of their business.
We've covered lot's in this blog but let's go over the main takeaways.
- Traditional banks are no longer the primary option for businesses seeking to open an account.
- As the global business landscape develops, business banking solutions like digital banks and EMIs are meeting the needs of many modern businesses.
- Challenger and specialist banks accounted for over half of gross lending in 2022 - their highest-ever share on record.
- There's a vast array of corporate banking services available with bank challengers. With EMIs like 3S Money, this includes local IBANs, multicurrency accounts and foreign currency exchange services.
- Alternative banking solutions are financially inclusive, providing fairer access to funds, they're easy to set up and are a more convenient option for budding businesses.
Get started with a 3S Money account
In a global economy, optimising your business banking operations is a necessity. With a 3S Money International business account you can redefine your international transaction experience.
Ready to revolutionise your business's banking operations and scale to new markets while doing so? Click our 'get started' button below.
Yes, many digital banks employ state-of-the-art security measures similar to, or even surpassing, those of traditional banks. This includes end-to-end encryption, two-factor authentication and sophisticated algorithms to detect fraudulent activity.
The nature of fintechs and EMIs like 3S Money makes them highly appealing to businesses wishing to scale. Learn how a Local IBAN can help with scaling business.
There are several advantages businesses can leverage when it comes to EMIs. The main benefits include speed, accessibility, bespoke banking services, competitive exchange rates and bank-beating international transaction fees.