One of the most important decisions to make when starting or operating any business is the method to adopt in handling money. This decision is so critical that it can determine whether the business survives or not. The right financial tool will facilitate efficiency in handling payments and receipts, enhance cash flow in the business and ensure that the firm meets its financial obligations on time. It also guarantees that finances and financial data are kept safe. Online banking solutions are increasingly gaining popularity in the business world, with online payment platforms like PayPal and Genome taking up the largest market share. Genome is a European online payment system that, like PayPal, enables a business owner to send and receive funds from anywhere in Europe. As more businesses digitize their operations, online banking platforms have become the de facto money handling method. Indeed, many traditional brick and mortar banks have been forced to either migrate their services online or close shop altogether. The implication here is that those businesses that have embraced online banking reaped many benefits while the rest have suffered relegation into ignominy. There are numerous benefits associated with online banking. Some of these benefits are outlined below.
Convenience
Convenience is the defining feature of online payment platforms. Not only is it possible to carry out transactions at any time but also from anywhere in the world, which makes online banking a truly global money handing method. While physical banks are limited by time, location, and facilities, online banking platforms operate from anywhere and at any time. Online banking is particularly useful for business owners who are extremely busy. With online banking, all common inconveniences like being stuck in traffic, interruption of work schedules, and queuing for long are instantly eliminated. Similarly, those who travel a lot need the convenience of accessing their funds from anywhere. Business owners can process staff salaries, bill payments, and other transactions even when they are not physically present.
Ease of monitoring and tracking of business transactions
Most start-ups and small-sized businesses are not in a position to install complex financial management systems to monitor their finances. Only large corporations can afford such systems because they are usually very expensive. Instead, small businesses have to rely on online banking platforms for managing their finances. By using an online payment platform, the business owner is able to keep track of all their transactions. They are particularly useful when dealing with several transactions in which accuracy is necessary. And this is critical for any business because it facilitates sound financial decision-making. The business owner will have a clear picture of where their finances are going. Some platforms like Genome even go a step farther by providing account owners with comprehensive financial analytics in one place at a minimal cost.
Lower costs
Online banking is the most cost-effective way of managing business finances from the convenience of a mobile phone, tablet, computer, or even smartwatch. Many people shy away from brick-and-mortar banks because of the high costs associated with keeping financial records and managing funds the traditional way. But, with online banking, one is able to take advantage of such automated tools like Electronic Fund Transfers (EFTs). EFTs are useful because they facilitate quick processing of payments, thereby reducing cost and eliminating the inconvenience associated with paper cheques. Similarly, it is easy to automate bill payments, which enhances financial management and reduces late bill payment fees. Most payroll, monthly bills, and fixed expenses can be processed this way, thereby saving time and money.
Enhanced security
Many people are concerned with the security of their data, including financial information. As a result, business owners are doing the best they can to protect themselves against data breaches. In this regard, banks and other financial institutions are among the most secured business organizations in the world because of adopting multiple layers of protection to keep their clients’ information safe. Banks put measures in place such as:
- Heavy encryption of data
- Use of numerous firewalls
- Latest virus detection software
Online payment platforms also implement such measures to guarantee that only the intended users access the funds in their accounts. As a result, business owners with such accounts will enjoy optimal protection of their funds and data. As long as they adhere to the banks’ security protocols, their money is safe. Most online banks require their clients to pass KYC procedures and protect their accounts with secure passwords, which should be changed regularly to prevent hacking.
Environment friendly
With the rising concern over global warming caused by pollution, businesses are increasingly under pressure to cut back on their carbon emissions. Businesses that embrace greener operation mechanisms are lauded and rewarded while those that do not are put on notice. Luckily, online banking has put banks at the forefront of environmental conservation efforts. Online payment platforms take advantage of paperless operations, thereby saving trees and improving the environment. Paperless transactions provide clients with access to paper-free financial transfers, e-statements, online customer support, and other business services friendly to the environment. By adopting eco-friendly services, online banking platforms are able to differentiate themselves from their competitors, thereby attracting more customers who enjoy services at a reduced cost.
Technology has irreversibly changed the manner in which businesses operate, particularly with regard to handling and processing money. The digitization wave sweeping across the globe has heavily disrupted the financial sector, with customers being the clear winners. Small business owners have the benefit of transacting online platforms, which makes it easy and much more efficient to manage their financial resources money. Although online payment platforms benefit all firms, small-sized businesses have much to gain from such systems, given the fact that they can access these services conveniently and at a lower cost. Online payment platforms like Genome are clearly optimized for small and medium-sized business owners, who will reduce operational costs if they will take advantage of such useful tools.
