A business bank account plays a crucial role in an organization, allowing the business to separate personal transactions, manage business payments, and track expenses. As your business grows, so do your banking needs. If you have outgrown your current banking institution, it might be time to switch to a new platform.
Many businesses are ditching traditional banking platforms and embracing neobanks due to their attractive benefits, such as quick setup, lower fees, and better customer service. However, your transition must be seamless to avoid disruption to your automatic payments. This guide can help you learn everything you need to know about changing your business bank and welcoming a new platform.
Table of Contents
Identify When It’s Time for a Change
A common challenge business face when switching business banks is determining the right time to switch. Watch out for the following signs indicating the need for a new platform.
Excessive Banking Fees
Every expense plays a role when building a business; even the most negligible expenses can stack up and influence your company’s cash flow. Many traditional banks have a minimum account balance requirement, and failing to meet that requirement can result in unexpected fees.
Many banks also charge hefty fees for different services. But neobanks are known for their affordable fees. When switching or changing banks, compare the costs of different platforms and choose one that bests fits your needs. Some platforms will offer options to upgrade your account for a fee, but those fees may be low for neobanks compared to traditional banks.
Your current bank might have been the ideal choice when you first started your business, but as your business grows, your needs evolve. The right banking platform will streamline your finances and ensure you have all the necessary services. Some compulsory banking services you may need include multiple bank accounts, virtual cards, and team spending limits.
Poor Customer Service
A business relies heavily on financial transactions, and poor customer service can interrupt business operations. This is incredibly frustrating if you need to take time to visit a bank and wait in line. In fact, a survey about customer service revealed that 96 percent of customers would leave a company because of bad service and switch companies if needed.
If you’re unhappy with your current customer service, switch to a customer-centric platform that offers continuous support. Neobanks are known for offering exceptional customer service, as they have dedicated teams to solve customer issues.
Learn How to Switch Platforms
Once you have decided to switch platforms, take some time to learn the best way to change your bank without disrupting your workflow.
Choose a New Platform
List down the top features you’re looking for in your new bank and compare the services offered by different neobanks. Some essential services that streamline business operations are expense categorization, multiple accounts, and better money management tools.
Gather Necessary Documents
The documents you may need to open a new account depend on your business’s size, type, and the platform’s requirements. Some of the most common documents required by most institutions are a government-issued ID, social security number or employer identification number, business license, ownership agreements, and proof of mailing address. The registration process is slightly different for each U.S. business entity, so you may need to provide additional documents.
Set Up New Account
After opening your new account, start setting it up by switching your payments and incoming deposits to the new platform. A key benefit of neobanks is the simple setup process and continuous customer support that makes the transition smoother.
Close Your Old Account
Keep your old account open until all recurring monthly expenses are posted to ensure timely payments. After everything is set up, say goodbye to your old bank to avoid hefty fees. The closing procedure may vary based on the bank, so it is best to contact the bank directly to ensure that your account is closed.
Get to Know Your New System
After you have selected your new bank, set it up, and closed the old one, start exploring your new banking system. Take time to get familiar with your new system and start enjoying the benefits of your new bank.