Businesses of all sizes need financial services providers so they can conduct business-critical financial transactions, access various banking services, and optimize their financial operations. Partnering with traditional banks, however, can be a challenge for owners of small- and medium-sized enterprises that are aiming to maximize their organization’s efficiency and flexibility.
Relying on traditional banks often presents businesses with issues such as lengthy onboarding processes, complex fee structures, limited digital capabilities, inadequate customer support, and less-than-ideal interest rates .
Neobanks, the digital disruptors of the banking industry, have emerged as a more welcoming alternative financial partner for SMEs in the Philippines. Unlike traditional banks, neobanks operate exclusively online, offering a seamless and user-friendly digital banking experience. These new players bring to the table features and products that will benefit modern small businesses in particular.
Here are some compelling reasons why SMEs in the country should seriously consider these neobanks as partners as online business banking partners.
User-Friendly Digital Experience
Neobanks excel in providing businesses with a user-friendly digital experience that simplifies financial management and business banking online. Their online platforms are designed with intuitive interfaces both on the backend and on the customer-facing side, allowing for seamless navigation and giving users the means to perform banking activities with ease.
SMEs in the Philippines can benefit from having easy access to typical neobank features like real-time balance updates, transaction notifications, and quick fund transfers. Neobanks also prioritize convenience by enabling businesses to access their accounts and initiate transactions anytime, anywhere, thus empowering budding entrepreneurs to stay in control of their finances on the go. The user-friendly digital experience offered by neobanks enables businesses to save valuable time and effort and give them the means to redirect these resources to the business’s core operations and growth strategies.
Faster Account Setup and Onboarding
Compared to the typical lengthy processes involved in opening an account with traditional commercial banks, neobanks offer SMEs a faster account setup and onboarding experience. Opening a business deposit account with a neobank often involves a streamlined digital process, requiring minimal paperwork and documentation, and without requiring business owners to appear in person at a physical branch.
SMEs can complete the necessary steps online, eliminating the need to visit such an establishment. Neobanks also leverage technology to expedite verification procedures and provide swift approvals for their programs, allowing businesses to promptly take advantage of business-critical products and services. One example of this is the Maya Flexi Loan, a loan products offered by the digital business bank Maya. With its hassle-free application procedures, fast approval times, and borrower- friendly fees, Maya Flexi Loan can help business owners get funding fast and without the usual stress.
This efficiency is especially beneficial for startups and small businesses that require quick access to funding, as getting a loan approved fast will allow them to instantly take advantage of the extra capital, whether it’s to grow their business or simply to finance operational or overhead costs.
Lower Fees and Competitive Exchange Rates
One of the significant advantages neobanks offer to businesses is their transparent fee structures and competitive exchange rates and interest rates. Neobanks often have lower or no fees for routine services like account maintenance, domestic transfers, and online transactions. Maya Business Deposit, for example, allows free fund transfers via InstaPay and PESONet.
By offering cost-effective services, neobanks empower businesses to optimize their expenses and allocate funds more efficiently, contributing to improved cash flow and profitability.
Additionally, when businesses do international business, neobanks can offer competitive exchange rates, saving SMEs money on currency conversions and reducing the overall cost of cross-border transactions. By leveraging these lower fees and favorable exchange rates, businesses can maximize their financial resources and achieve better bottom lines.
Enhanced Financial Management Tools
Neobanks go beyond basic banking services by providing SMEs with enhanced financial management tools. These tools typically offer comprehensive insights into business finances, empowering owners and managers to make informed business decisions.
Features such as real-time transaction categorization, budgeting tools, and interactive data visualizations enable businesses to monitor and analyze their cash flows, expenses, and revenue streams more effectively. With a clearer understanding of their financial performance, SMESs can identify areas for improvement, plan for future growth, and adjust their strategies accordingly. Indeed, neobanks facilitate smarter financial management for businesses, supporting their long-term success.
Integrations with Third-Party Services
Neobanks understand the importance of seamless integration with other business tools and software. Through well-developed application programming interfaces (APIs), neobanks enable SMEs in the Philippines to integrate their banking data with other important technological tools like accounting software, payment gateways, and other financial management platforms. This integration eliminates the need for manual data entry and facilitates real-time synchronization of financial information.
By automating these processes, businesses can streamline their operations, reduce errors, and save time. The ability to connect banking data with other business tools enhances efficiency, accuracy, and data visibility, allowing SMEs to focus on their core competencies and to drive growth.
Responsive Customer Support
Neobanks prioritize customer support and offer responsive assistance to businesses in the Philippines. Through multiple channels like live chat, email, or phone, neobanks ensure that businesses have access to prompt and efficient support when they encounter issues or have inquiries.
The customer support teams of neobanks are trained to understand the unique requirements of SMEs and provide personalized assistance. Whether it’s addressing a transaction discrepancy or seeking guidance on using specific financial management features, businesses can rely on neobanks to provide valuable support and timely resolutions to issues. This level of responsiveness and dedication to customer satisfaction further strengthens the partnership between neobanks and SMEs.
By providing seamless digital experiences, offering advanced financial management tools, and enabling inter-platform integration, neobanks enable businesses in the Philippines to streamline their operations, gain real-time insights, and make data-driven decisions. This digital transformation enhances efficiency, agility, and competitiveness, positioning businesses to adapt and succeed in the rapidly evolving digital
landscape.
