Mobile continues to be the name of the game and will soon become a required function for your business.
- Mobile banking is ideal for businesses searching for secure institutions to hold their money, pay the interest, and provide the same services as brick-and-mortar banks; all done instantly and remotely.
- Mobile banking is thought to be as, if not more secure, and risk-free than in-person banking.
- There are many benefits of mobile banking for businesses including saving time, having instant validity of a purchase, transferring money, paying bills, and having access to bank statements 24-hours a day.
When you own a small business with limited resources and a long list of to-do's, keeping up with the latest in banking technology may seem like a low priority. Mobile banking has a significant impact on your business's costs, cash flow, and ability to attract, serve and retain customers now and in the future. Here's a look at why mobile banking is the future and how its continued evolution will impact your business.
Consumers expect the ability to pay with a mobile device.
According to data collected by Cellum Group, 41% of iPhone users have used their mobile devices to conduct at least one mobile payment transaction.
Benefits of mobile banking for business
As consumers repeatedly hear of large-scale data breaches at popular corporations and leading financial institutions, concerns about payment technology and transaction security will heighten. According to a research report from Aite Group, the mobile environment offers more robust security against cybercriminals and "traditional" identity thieves than online channels.
As a result, it predicts that financial institutions and merchants will become more aggressive about integrating mobile apps into sales channels, and incentivizing consumers to leverage the higher-transaction security that mobile offers. As a small business, you can offer consumers the same level of protection by processing mobile payments through a secure payment processor, and/or incorporating such a processor’s environment into your business’s own native app.
Mobile banking provides cost efficiency for small businesses
Mobile banking is a cost-efficient way for small businesses to manage daily finances, process transactions and grow business. As The New York Post recently reported, it's a win-win for financial institutions and business owners. Not only do small business owners who use mobile banking have more money in their accounts, they use more of their financial institution's products and services.
When small business owners deposit checks using a mobile device and app, in tandem with processing customer payments via a mobile payment processor, they expedite access to cash flow, while eliminating the cost and inefficiency associated with traditional paper-based banking processes.
Mobile banking has even simplified the process of finding small-business funding. In a Fox Business article, Rohit Arora, co-founder and CEO of an online lending resource says that mobile small-business loan applications have risen from 25% to 40% today in just a year.
Quick validation of payments from buyers
When mobile banking is used by a business, the process of validating payments is often quicker and easier. This is because mobile banking eliminates the need of going to your bank or waiting for monthly statements to arrive to verify transactions; instead, all transactions can be seen immediately online.
24-hour customer assistance
If you have a problem with your business account after business hours, you don't have to wait until the bank is open to speak to a representative, because there is usually a customer service help desk available to help with resolving issues. The mobile options for banking customer service vary, but you can generally call, send an email or click on chat to message a representative.
Transferring and sending money
One of the best benefits of mobile banking for businesses is that you have access to funds at all times, so you can transfer funds from one account to another account with the same or similar bank. You also can send funds to vendors through a transfer or you can provide customer refunds without speaking to a representative in person.
Pay business bills online
Business owners are usually busy, so time is valuable. Mobile banking allows you to pay your business bills online, including memberships, utilities and vendor statements. This option saves time that would otherwise be spent writing and mailing checks.