The business banking industry today
Over the past few years, the business banking industry has been undergoing a radical and intuitive shift, and all roads point to the digital space.
FinTech companies are changing the way we manage our finances by providing simple financial solutions for underserved small-scale online businesses, startups, and freelancers.
At NextPay, we bring the power of big banks into the hands of small businesses with fewer requirements, no set-up fees, and maintaining balances.
Not only do we help freelancers and entrepreneurs to survive and thrive, but we’ve also succeeded in challenging traditional institutions to rethink the way we do business and join us in empowering these MSMEs (Micro Small and Medium Enterprises).
Big investment banking companies like Goldman Sachs, JP Morgan Chase & Co., and some others have already made big investments in FinTech to maintain their competitive edge. When asked about this move, the Goldman Sachs executives claimed this to be on “an evolutionary path” and referred to this move as an important step in their future.
In this article, we will count down three of the most common small business banking problems that traditional banks do not address.
1. Outdated policies and zero flexibility
When you lose your debit or credit card, it takes somewhere between 3-10 business days to have it replaced. The day count only begins after you deactivate your account and personally submit all their requirements like an affidavit of loss, current billing statements, and replacement fees during banking hours.
Now imagine losing that card a day before a business trip, where you would heavily rely on it to make payments. You try to ask for an alternative solution, but issuing a replacement card with incomplete requirements would be “going against bank policies”.
These kinds of scenarios happen every day and it is inconvenient and inefficient, to say the least.
Finance-related matters need to be more flexible in addressing demands in an attempt to continuously improve the customer experience.
2. Cash flow issues and budget limitations
All businesses need proper bookkeeping but because of the limited budget with startups and small businesses, most owners still choose to take care of this on their own.
But as the business grows, so do the books. If the owner is too busy balancing books and categorizing transactions, then other essential parts of running the business like product innovation and marketing may suffer.
We at NextPay record all sales, payrolls, and invoice transactions with our easy-to-use online platform. You can even save the contact details of your employees, suppliers, and customers, all of which you can look back to anytime you need to do an audit.
3. If you can’t do it online, it’s a waste of time
For most small-scale business owners who are recently jumping into the world of entrepreneurship, most of the work being done are handled during their free time. Most of them have separate day jobs, children to take care of, and activities to power through, or other responsibilities that take up most of their time and attention.
Imagine being a full-time professional running a food delivery business on the side.
- You try to open a bank account during your lunch break, the only free hour in your busy day) and you find out that the tellers you have to talk to are also on a break.
- To go around it, you’ll have to get in line and wait for banking hours to resume.
- This throws a wrench into your entire schedule and pushes back the important components you need to run your business right.
Finding good business banks with proper online services is a chore right now in the Philippines.
The less time you spend on setting things up, the more time you’re able to dedicate to running your business.
With big banking behemoths taking control over essential business services, it’s hard to find reasons for them to innovate and deliver better products to help every entrepreneur’s needs. Because of this, customers are forced to choose a bank with either flexible policies, easy budget requirements, or a comprehensive online service— but not all three at the same time.
The solution to this problem is NextPay’s completely digital platform which allows users to create new accounts and make their first transaction within minutes. Users get to enjoy essential business banking services without having to leave the comforts of their homes or offices.
No lines, lunch break mishaps, or long waiting times.
From freelancers to entrepreneurs in the Philippines, NextPay understands the struggle these customers go through. Experience an affordable and sustainable solution to your business banking needs with NextPay. Sign up for a free account today!