The Benefits of Mobile Banking for Small Business

Small businesses today must utilize several tools to maintain their competitive edge. With mobile banking set to be worth $1.82 billion within the next five years, banking apps have become essential tools.

Not convinced about the benefits of mobile banking for your business?

In this five-minute read, we’ll give you something that might convince you to leverage this powerful tool. 

What Is Mobile Banking? 

Mobile banking refers to the use of an application to conduct banking transactions. In place of going into a branch, business owners may use the application on any mobile device.

Having the app on a smartphone is an incredibly convenient option when you’re on the go.

The Benefits of Mobile Banking for Businesses

It’s hard to believe now, but there was a time that getting your balance meant waiting for a statement in the mail or finding a bank branch or ATM. Fortunately, technology has evolved so much that it’s seldom necessary even to enter a bank. 

While most people are accustomed to using online banking in their personal lives, it’s taken the business world a little longer to take up the trend. It’s a bit of a shame because there are numerous benefits to mobile banking. 

You Get Updates About Transactions Immediately

Checking your monthly statement is still standard practice. However, few businesses can afford to reconcile their accounts only once a month.  

With the level of fraud today, it’s essential to keep a wary eye on any money going out of your business’ account. Instant account updates alert business owners to critical transactions, allowing them to react quickly to dodgy ones. 

The alerts also make it easier to stay within the business’ overdraft limits. Owners will see when funds are low and may make arrangements with the bank for temporary financing. 

Equally importantly, alerts let you know when the client has paid in money. Today’s consumer expects you to register their payment almost immediately. They won’t stand for you reconciling your statements once or twice a month. 

Make Payments on the Go

Make Payments by Swiping the Phone or Using a QR CodePhoto by Proxyclick Visitor Management System on Unsplash

The mobile apps assist with payments in two ways. Most of us have already used an electronic funds transfer. It’s easy to set up this facility and useful when you pay regular suppliers. You make your payment on the app, and it goes directly through to the other party’s bank account.

This makes it easier for both of you because there’s no need to issue, cash, or deposit a check, and the process is speedy. 

Some banks also include a budgeting feature within their app, allowing you to set reminders for recurring expenses. Would you like to learn more about keeping your business finances on track? This article goes into the subject in greater detail. 

More recently, the app itself has become a payment device. Instead of presenting a bank card, the owner may swipe their phone or pay using a QR code. 

 Keep an Eye on Executive’s Expense Accounts

Compare your Card Transactions to Your Mobile Banking AppImage by Firmbee from Pixabay 

A company credit card is a useful tool, but one that may be open to abuse. By enabling alerts linked to the card, the chief financial officer can see what money is being spent and where it’s being spent. 

Aside from potentially preventing fraud, it’s also a useful tool for cash flow management. If the funds in the card are running low, the manager may quickly transfer more money using the app, of course.  

Do your executives need a crash course in personal finance management? Let them read this article to improve their money management skills. 

Improved Productivity and Efficiency

Mobile Banking Improves ProductivityPhoto by krisna iv on Unsplash

Waiting in a bank queue is so last century. With banking apps, it’s also mostly unnecessary. Unless you need to make a cash deposit or have a complex query, there’s seldom any reason to visit the bank. 

This improves efficiency by reducing the amount of time out of the office. Team members are better able to keep track of the business’s finances from the comfort of their desks. 

Reduced Risk

With all the buzz about cybersecurity, it may seem strange to say that using a mobile app reduces your fraud risk. While it’s true that being online exposes you to cybercriminals, there are also plenty of real-world criminals with which to contend. 

Cash is always a drawcard for criminals, making depositing or withdrawing it a risk. Aside from that, there’s the potential for check fraud or the theft of your financial information at a bank branch. 

A seasoned criminal may easily impersonate you or may even convince a bank employee to assist them. 

Still worried about cybersecurity? We’ve covered the top six tips for improving your account’s security here

Final Notes

We live in a fast-paced, digital age. For businesses to remain competitive, they must offer the swift service that their clients expect. Using mobile banking is an excellent way to stay on top of the firm’s financial affairs.

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Hristina Nikolovska
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