Having a dedicated business bank account legitimises your business in the eyes of customers, vendors and funders.
It can also help you manage cash flow more effectively, budget better and plan for future growth opportunities. Most importantly, it gives you a holistic view of your business’s finances.
As a business owner, your business bank account is one of the most frequent touchpoints you will have on a day-to-day basis. It’s important that the service and features it offers enhance your business.
Digital banking is gaining popularity and offers advanced features when compared to traditional bank accounts. Getting clear and specific about what your business banking needs are can help you decide whether you’d like to stick to a traditional bank account or switch to an alternative digital business bank account.
Why Open a Digital Business Bank Account?
According to Oliver Wyman’s Digital Banking Index, South Africa ranked second globally in the average digital maturity score in 2022 when compared to the eight nations reviewed, including Spain and the UK.
“South Africa outperforms countries such as the UK, Spain and Germany,” says Pierre Romagny, Partner: Financial Services at Oliver Wyman in South Africa.
Traditional banks adhere to old practices that don’t necessarily accommodate the demands of modern businesses.
Digital bank accounts like Lula’s Free and Unlimited Bank Accounts, offer a full range of features giving users more control over financial management.
One feature is Payment Controls which gives primary users authority to delegate certain transactions to secondary users, while still retaining the power to authorise payments for action. Another feature Multicompany, allows for the management of multiple business accounts from one banking profile with a single login.
Digital banking platforms streamline day-to-day operations and make them more efficient in a few ways by offering:
• Faster transaction processing: Online bank accounts offer tools to help you manage payments, invoices, cash flow forecasting and other financial transactions
• Digital onboarding through an online application that takes minutes
• Smart business banking features like cash flow management tools, easier access to business funding and enhanced security
Digital Banking vs Traditional Banking: A Real-World Scenario
The differences between traditional banks and digital banks are more than just technological. While traditional banks tend to stick to legacy models, digital banks innovate to quickly respond to changing customer needs.
Here is an example that highlights the differences between traditional banking and digital banking through two real-world scenarios:
Traditional bank experience
Thandi, owner of a catering business in Cape Town, needs to make an urgent payment of R150,000 to a new supplier to secure ingredients for a weekend event.
She uses her traditional bank’s mobile app to initiate the payment. However, upon making the payment she encounters a few issues.
The app notifies her that the amount exceeds her daily transfer limit. She calls customer service to increase the limit. After the limit is adjusted, she attempts to make the transfer and a 24-hour security hold is triggered, delaying the payment. She calls the bank, but is placed on hold, further delaying the transfer. The delay causes a ripple effect on her business operation and client satisfaction.
Digital bank experience
In a separate instance, Thandi uses her digital business bank account to make a similar urgent payment.
She adds the new supplier as a beneficiary through the bank account’s app. The payment is instantly processed without delay and the supplier can dispatch the order promptly. This seamless experience allows Thandi to maintain her business operations smoothly, ensuring client satisfaction and operational efficiency.
No delays, full client satisfaction, no wasted time, no paperwork, no queues and smoother operations – all without leaving her desk.
A business bank account in South Africa with modern features can make banking faster, easier and more efficient, saving you time and money. Here’s a closer look at the top five digital business bank account features you can use to maximise your business’s financial potential.
Top 5 Digital Business Bank Account Features
Here is a closer look at the features offered by the top digital banks in South Africa. Access them to get the most out of your banking experience and streamline your cash flow management processes.
1. Integrated cash flow and financial management tools
Integrated cash flow and financial management tools give you real-time insights into your cash flow without having to rely on spreadsheets or manual tracking.
2. Seamless digital onboarding
You can open a digital bank account online within minutes. Most digital banks ask you to fill out your details through an online application form, submit a copy of your ID, proof of residence and a selfie taken with your smartphone for an extra layer of security.
Lula’s banking solutions are specifically tailored to small and medium-sized businesses. The entire process of opening a Free Lula Business Bank Account is online – no branch visits or paperwork are required.
3. Easier access to business funding
Banking online with a digital bank account, can give you quicker access to business funding from one profile. The application process is completely paperless, with a faster turnaround time.
With Lula’s Free or Unlimited Business Bank Accounts, you can easily apply for our Revolving Capital Facility or Capital Advance and receive the funds in your account within as little as 24 hours, if your application is approved.
4. Multi-entity and admin control
Multi-entity and admin control tools are digital banking features that allow for greater financial control. Here’s how these features work for you:
Manage multiple accounts: With a multi-entity feature you can manage multiple business accounts from one banking profile (e.g. if you run two companies or multiple branches with separate accounts but want to manage them from one profile). Lula’s Multicompany feature allows you to access and manage multiple business bank accounts with a single login.
Assign and control user permissions: You can ensure your financial commitments are met more easily with a feature that allows you to delegate transaction authority, without compromising oversight of cash inflows and outflows. Lula’s Payment Controls feature allows you to assign transaction power to secondary users, letting them load payments and submit them for your approval.
5. Enhanced security and fraud protection
Digital bank accounts have built-in security tools and protocols that protect your business account from unauthorised access, fraud and cyber threats. While there is concern about whether banking online is secure, instead of simply relying on passwords, digital banks use biometric identification, making unauthorised access harder.
Transform Your Business Banking Experience
Digital banking can transform and enhance the way your small business manages its finances.
With features like integrated cash flow management, multi-entity access, biometric security and real-time admin controls, the right digital business bank account can simplify daily operations and free up your time for growth. Choose a digital business bank account that maximises your business’s potential, allowing you to transact with ease.
Ready to Streamline Your Finances and Grow?
Open a Lula Free or Unlimited Business Bank Account online today and access features to level up your cash flow management and funding for growth with ease. Enjoy easy onboarding, powerful financial management and easier access to business funding when you need it. Experience business-class banking built to help your business thrive.
