Online Banking Benefits Businesses. Here's Why
Online banking is an excellent way for businesses to save time and resources in this digital age. It is cost-effective and offers a convenient way to track expenses. As more businesses struggle from the effects of the pandemic, digital banking is becoming the go-to way to handle money. According to the Bank Negara Malaysia (BNM) data, internet banking penetration increased by about 10% between 2020 and 2021.
Much business digital transformation is expected in 2022. More so, your business stands to gain a superior market share by adopting online banking services. Even brick and mortar banks are migrating their systems online to stay competitive. Below are the benefits of online banking that will help boost your productivity and better serve customers.
1. Easy Monitoring
How often you access your business finances determines how well you manage transactions. A 2020 survey shows Malaysians made 1.16 billion transactions, up from 449 million in 2016.
If you handle significant daily cash flow in your business, it is easy to lose track of unusual payment activities. You may also spend much time preparing financial documents and miss out on productive business tasks.
When using online banking, tracking income and expenses is effortless. You can review payments and checks without going to the bank or checking your bank statements. This is handy, especially when preparing to file returns or pay suppliers.
2. Seamless Accounting
Accounting is a significant cause of headaches for most firms, considering the services cost about RM300 per month based on the number of transactions. With over 90% of Malaysian shoppers admitting to using digital banking at least once monthly, calculating sales, salaries, taxes, and supplies can be an uphill task.
Thank heavens online banking streamlines transactions, allowing business owners to compile sales and process staff salaries timely. It also lets you synchronise all your business’s transactions with your accounting system in a breeze.
All your financial reports stay up-to-date. As a result, you save money and time you would otherwise spend compiling transactions manually or hiring an expert.
3. Enhanced Security
Whether you run a start-up or an established business, you may need help with bookkeeping. If you are forgetful, your business can end up in losses in the growing co-working space in Malaysia after you fail to trail payments.
With online banking, your finances stay safe thanks to the multiple security layers involved. The use of encrypted transmission technological solutions also helps combat data theft.
You can customise employees’ access login features and track transactions in real-time. Your online banking provider will even alert you if they detect suspicious activities. This will boost your business’s financial and shared information security.
4. Save Time Spent in the Bank
With the number of banks shrinking by over one-third, waiting to be served in a bank is tiring and time-consuming. A typical Malaysian bank takes about 2 to 3 days to credit funds to a recipient’s account. This means you will encounter business huddles if your suppliers can’t deliver before receiving payment.
Online banking is heaven sent if you consider the hassle of getting stuck in traffic to and from the bank and some banks’ reduced working hours and days. With it, you will access your account 24/7—even on holidays, unlike traditional banks, which operate for hours. You can carry out many tasks quicker with online banking than by visiting a conventional bank.
5. Lower Operation Costs
Online banking is a cost-effective way to manage transactions on your smartphone, tablet, or computer. The convenience of organised finances in your business makes it easy to set up recurring expenses without going to a brick and mortar bank.
You also avoid the high charges associated with financial management at banks. A seamless online banking system lets you stay on top of bills and attend to the over 27 million internet users in Malaysia who are part of your customers.
6. Pay Bills
A simple online banking setup can enable you to pay bills timely. If you have recurring invoices, you can schedule them in advance and put an end date to discontinue the payments. Your digital banking institution will store the payee details for you in case you need to make a payment in the future.
You can even capitalise on automated tools to bypass the impracticality of outdated checks. This is handy when dealing with varying bills and those with late-payment fees. It gives you better control and insights into transactions. You may even get early payment discounts for supplies and boost business relationships with suppliers.
7. Worldwide Access
Gone are days when business owners had to visit bank halls to check balances and statements. As of 2020, over 1.9 billion individuals actively use online banking, and the figure is expected to reach 2.5 billion by 2024.
The sheer level of convenience of online banking is outstanding. If your business involves a lot of travelling, you can still access your finances remotely. You can use a mobile online banking app to take pictures of checks and bank them. You only need to log in to your business system from anywhere in the world and access your finances.
8. Convenience Record Management
Document management challenges reduce business productivity by 21.3%. Most professionals admit to taking an average of 18 minutes to locate paper documents and photocopying them up to 19 times.
Online banking shrinks the need for loads of business paperwork: no faxing forms and paper statements. Many internet banking providers allow users to interface bank accounts with accounting software. This simplifies transaction reconciliation and comparison processes. You will receive e-statements that are easy to store and retrieve whenever necessary.
Technology is revolutionising the way businesses handle finances. Global economists and financial advisers project cash usage in transactions to reduce as 30% of Malaysian adults acquire digital banking accounts. We at Allo strongly believe in ensuring businesses and consumers alike can benefit online banking access, and we continue to support the nationwide fiber broadband rollout with your banking safety and convenience in mind.