In recent years, payment institutions (formerly known as "neobanks") have revolutionized the banking world with their innovative solutions and attractive rates. More and more professionals, whatever their field of activity, are using their services. Nevertheless, many are still unsure of how to make the right choice when it comes to opening a business account: how do you choose between a payment institution and a traditional bank?
Traditional bank offerings
Universal services
Whether they're traditional or online banks, all banking establishments offer more or less the same services to their business customers, namely the deposit of share capital, as well as the provision of a company bank card, a business IBAN and a checkbook. In addition to these services, they also offer additional services that can rapidly inflate bank charges:
- overdraft authorization
- contactless payment
- rental of payment terminals
- secure online banking and payments
- additional or international bank cards
- international transfers...
Some banks also offer credit to help businesses start up and grow. This usually involves financing goods and premises, or, more rarely, cash loans.
More and more banks are also offering comprehensive and car insurance.
The advantages of a professional bank
The number 1 advantage of traditional business banks is their local branches. Your business account is monitored by an advisor whom you can meet by appointment. If you have any questions, you can contact him or her, or go to a branch counter for information. This long-term relationship with an advisor who knows you can be a real plus for your business.
However, the reality is not quite so simple. Branch advisors are often very busy, and you may have to wait several weeks for an appointment. What's more, in many banks advisors regularly change jobs or branches, which doesn't guarantee a medium- to long-term relationship. In addition, the branch's opening hours may overlap with your work schedule, making it difficult for you to get in. To alleviate these problems, you can usually carry out many standard operations at self-service counters or by logging on to your secure online space. The second major advantage of traditional pro-banking is the possibility of depositing cash and cheques, with immediate settlement. These operations are generally not possible with online business accounts.
Payment institutions or "online pro accounts": interesting alternatives
Innovative services
Online payment institutions or business accounts are not banks, but they do offer innovative solutions for managing your day-to-day finances. In addition to a bank card and RIB, a company or association that opens an online account via a payment institution such as Anytime, Qonto or Shine, for example, benefits from a number of additional services designed to facilitate the management of its business.
With Anytime, the entrepreneur can request payments via SMS or email, and set up a payment system on his site very simply.
No need to visit a branch, you can manage your account from a mobile app or web interface. After downloading the dedicated application onto your smartphone or tablet, you can carry out your transactions anywhere.
The main difference between a payment institution and a traditional bank is that the former does not offer credit. You won't be able to spend more than you have in your account.
The advantages of paperless financial institutions
Their first advantage is undoubtedly the transparency and attractiveness of their rates. They offer financial solutions at half the cost of traditional business banks.
They enable you to manage your day-to-day operations from a single application, thanks to optimized service operation. So you can manage your account anytime, anywhere. You benefit from a flexibility of action that can prove particularly comfortable.
What's more, even if your account is not monitored by an advisor, you can always contact one if you need to. Customer services are often very responsive, so you can be sure of a quick answer.
How do you choose your banking service?
Depending on your needs
The first question to ask yourself is: what are your needs?
- Do you have a business that involves the regular cashing of cash or cheques? If so, a professional bank may be more appropriate.
- Do you need a loan? In most cases, you'll need to have an account with the establishment in question to qualify for a loan.
- Are you planning to carry out a large number of international transactions? A payment institution like Anytime will offer you better options to meet this need.
- Do you need a payment terminal? The conditions offered by online professional accounts are probably more advantageous. At Anytime, for example, the POS terminal is free when you open your account.
- Do you collect money from remote customers, for example by selling them services over the Internet? The terms and conditions offered by professional accounts are potentially more advantageous.
- Do you need a large number of Mastercard cards to manage your marketing, Adwords, business and overhead budgets efficiently? Our online service makes it easy for you to order virtual or plastic Mastercard cards to manage your expenses efficiently.
According to your expectations
If you prefer human contact and are definitely not comfortable with the idea of managing your account online, having the option of visiting a branch will reassure you.
On the other hand, if you're looking for efficiency and responsiveness, you'll probably be happy with the services offered by an online financial institution like Anytime. These establishments provide customers with support that responds quickly to their expectations, with clear and precise answers. What's more, the developers of online banking mobile applications ensure that everyone can use them, by creating intuitive interfaces that are easy to learn. Newcomers to digital tools can quickly get to grips with this new management mode offered by payment institutions and online business accounts.
While there are still a few limits to the use of online pro accounts, they are becoming fewer and fewer. To make your choice, we recommend that you consider the services you'll need in the short to medium term. The best solution is certainly to have 2 accounts, one with a payment institution to manage your day-to-day operations and the other with a traditional bank to support your growth (credit, overdrafts).
