What is a digital business account and what are its benefits?

Apr 05, 2024

The need for digital banking is inflating with a more tech-savvy and borderless means of conducting business. Companies realize how important it is to guard their digital customer base to keep the growth and profitability trajectories escalated. 

Small businesses, too, have revolutionized their strategies to fulfill the demands of their customers. Apart from survival and establishing deep roots in business operations, the digital aspect of accounting and finance is one of the main reasons for thriving. 

The digitization of core banking services is the most path-breaking development in the banking industry. Businesses now rely on their banks for almost all financial transactions, domestically or internationally. Their 24*7 customer service is supplementing banks to retain their customers. 

But the needs of businesses are fulfilled differently than individuals. Companies keep a digital business account for handling all business-related activities.

What is a digital business account?

Digital business account are corporate bank accounts with comprehensive and tailor-made financial services designed to bring all the business transactions under one roof.

In simple terms, these are bank accounts that specialize in dealing with businesses only.

Business accounts are meticulously created to cater to the needs of businesses like faster payment processing, benefits on debit and credit cards, instant loan approvals, tax reports, and in-depth cash flow reporting.

Business accounts are current accounts with enhanced features for a smoother banking experience. They are not subjected to any minimum balance requirements or monthly fees for using their services.

In addition to this, they offer secured online banking services accessible from anywhere 24*7.

Difference between traditional business accounts and digital business accounts

Digital banks operate digital business accounts. Digital banks are financial institutions that offer similar functionality to a bank, but their services are entirely online.

Unlike traditional banks, they do not have physical places for walk-in facilities. In traditional banking, for availing of any banking services, customers were required to sign multiple documents for verification.

Your relationship with the bank starts online and stays online through digital banking. You need to submit all your documents digitally, with zero requirements for face-to-face interaction.

Need for a digital business account for small businesses

Digital accounts are the modernized and uncomplicated way to do business banking. They offer a seamless user experience by upholding your data's most reliable form. 

Usually, in a small business environment, things are messed up brutally. There is no clear segregation between departmental work, predefined workflows, and even messier accounting and finance.

Having a dedicated bank account for only business transactions goes a long way in helping small businesses.

Below we have highlighted some of the reasons to opt for an online business account and the ways businesses can leverage its benefits:

Professional outlook

Maintaining a separate bank account for business transactions is one of the business’s unwritten etiquettes. It exuberates a professional attitude towards business and customers.

Separate personal and business accounts

Keeping your personal and business bank accounts different is a significant move for better financial visibility. All the transactions related to your business are conducted through a single account, allowing easier identification during the reconciliation process.

Also, this practice helps uncover the cash flow generated to and from business purposes only.

Easy expense tracking

Digital business accounts display all the transactions undertaken from the report, whether net banking or ATM withdrawals. The monthly bank statement briefs all the incoming and outgoing transactions, allowing easy expense tracking.

How can businesses benefit from a digital business account?

Being a complete digital phenomenon, users can access their banking benefits from almost anywhere. This technology helps customers in saving time and money along with providing unmatched data security. 

There are many reasons to use a digital business account and streamline your business banking experience. Here are some of the benefits that a digital account offers to you and your business:

1. High level of security

Because digital banks function entirely through digital means, the foremost concern of users is data security. To resolve this issue, digital bank data is outlined with layers of security through encryption and two-factor authentication.

Being end-to-end encrypted, no third-party user can access any of the information being shared. If any threat or data piracy situation arises, users are immediately alerted, and the account is frozen.

2. Ease of use

Users can effortlessly access their digital accounts from anywhere. Creating an account on these platforms is also as easy as ever. You simply have to download the app or visit their website, enter your details and submit a few documents for verification.

Once approved, you are ready to use your account!

Also, to assist their customers, they have helpline numbers; you can call them or write to them. For immediate assistance, the majority of the websites have enabled live chatbots.

3. Integrate business accounts with accounting software

Integrations are an essential part of online softwares. The digital banks have codes that can be integrated with the codes of accounting software.

All transactions through your bank account are immediately reflected and reconciled into the accounting system.

4. FX Savings

Currency conversion and FX rates are among the most fund-draining processes for any business. Their sky-high fees make companies lose a significant chunk of their profits if done regularly. 

Digital business account are equipped with exclusive currency exchange rates to encourage more cross-border transactions. They try to mitigate the conversion-oriented losses by providing first-hand exchange rates without hidden charges.

5. Allows multi-user access

Traditional banks have constraints over multi-user access. This poses a challenge to those organizations where multiple employees are required to access the same account.

Corporate bank accounts streamline the multi-user management by providing controlled access to employees, ensuring that no unauthorized employees can gain access.

6. Reduced transaction costs

Business account owners save a lot more through digital banks as compared to conventional banks. Almost negligible fees are associated with bank transfers, ATM withdrawals, bill pay, money transfers, and payroll.

Moreover, being entirely digitally empowered, companies save a few bucks in fuel and transportation charges.

7. Exclusive rewards and cashbacks

Digital banks help you save and enable you to fill your pockets with rewards and cashbacks.

To honor the relationship between the company and the bank, the latter incentivizes the former with its rewards programs in order to maintain cordial relationships.

8. Time-saving

Adopting digital business accounts provides a helping hand in saving time. If you are an off-shore business trying to open an account in a new country, you are required to go through an extra layer of verification.

But with digital banks, you can finish the set-up of your bank account within a day without any extra hustle.

9. Better business relationships

Through small business bank accounts, companies will now be able to track their expenses, schedule vendor payments, get alerts and notifications for upcoming bill payments, and ensure they are closed promptly.

This timely nature promotes healthy relationships between parties.

10. Faster payments

The main advantage of digital account is reduced transaction costs with fewer intermediaries in the chain. With many parties being involved in the process, the price of transfer significantly rises along with delaying the transaction.

An online business account eliminates the need for intermediaries and transacts directly with the beneficiary.

Get a business account with Volopay

Are you looking for a business bank account for enhanced expense visibility, seamless integration with accounting software, reduced FX rates, and lucrative cashbacks without compromising your company’s security? 

We have a solution for you — Volopay. 

Volopay offers a robust system for creating and handling your online business account. Our digital business account allows you to perform all the banking functions like vendor payouts, monthly statements, wire transfers, and on-the-spot reconciliation.

Volopay’s digital wallet readily holds more than 11 + currencies, displaying conversion rates. Users can undertake SWIFT and Non-SWIFT money transfer options to more than 130+ countries with the lowest FX rates!

You can also receive money from anywhere globally; our wallet supports all currencies. To unload your accounting requirements, we offer integration of our digital account with our accounting software.

You can now reflect all your transactions into your accounting ledger, syncing it, thereby reducing the possibility of double-entry.

Volopay offers a unified expense management system capable of offering corporate cards, reimbursements, bill payments, vendor management, credit line, approval workflows, invoice processing, and more to revamp your accounting stack.

Does Volopay allow the integration of accounting software into business accounts?

Yes, you can integrate Volopay’s business account into your accounting software. Also, Volopay offers integrations with accounting platforms like XERO and Quickbooks.

Is it worth having a business account?

Yes, business bank accounts are created to fulfil business owners' requirements. Digital banks continually make their platforms more user-oriented for a seamless banking experience.

How secure are Volopay business accounts?

Volopay’s business accounts are outlined with multiple encryptions making your business data wholly secured with us. On top of that, we do periodic Vulnerability assessments and Penetration Testing (VAPT) from security providers to ensure the high-grade security of our platform.

Is there any limitation on Volopay transactions?

There are absolutely NO limitations on Volopay transactions.

Want to open a secure digital business account to boost growth?