If you are a wise business owner, you would know what you should spend money on and what you should not spend money on. Beyond that, you would also continually look for ways to save on the money you spend on the things that you must spend money on. When you can do this, the chance of your business surviving will increase significantly. One of the ways that you can save money as a business owner is using the services of money transfer apps like Transferwise, even if you decide to maintain a physical account for your company. Some of the ways you can save money through online banks and money transfer apps are discussed subsequently.
One of the strategies most online banks adopt to stay competitive is by providing their services at a cheaper fee. For instance, you can read about Transferwise Transfer fees and compare them to the transfer fees charged by your bank for International transactions to have an idea. In most cases, this also applies to virtually every other service that online banks provide. You might be wondering if it is sustainable for them to provide services at a cheaper price. It is sustainable for online banks to provide cheaper services for some reasons. One of such reasons is that they don’t necessarily need to have a physical office and if they must, they could survive with just one or two offices if they are a strictly online bank. This is apart from physical banks that might have to maintain a minimum of 100 branches with staff, maintenance cost and bills on trying to expand with more physical branches, while still spending almost the same as an online bank to maintain their online platform.
All services online
As opposed to physical banks where you would sometimes have to go to the bank to carry out some transactions, all transactions you need to carry out on online banks would be carried out online. If the cheaper services of online banks are not enough to woo you, perhaps saving your time would. You can always carry out your transactions on the go at whatever time you want to when you use the services of an online bank.
Method of transferring money
The method of transferring money for online banks also makes online banks very attractive to businesses who send money abroad regularly to run their other offices, as remittances from their branches abroad or to pay employees. The fact that platforms such as Transferwise convert the money to the local currency of the country you are sending the money to before transferring provides a lot of benefits for the recipient and by implication, the sender. Many local banks charge individuals who receive money in foreign currency, but this will not apply when the money is in already in local currency despite coming from a foreign country. Furthermore, the charges are cheaper and the service faster than when you try to use physical banks.
With online banks that operate internationally, you would enjoy international services. For example, you could open an account in foreign currency for a branch in a foreign country. Subsequently, money could be deposited in the account locally and internationally. You could own multiple currency accounts on a single account on online banks. In most cases, physical banks would expect you to use a different account for a different currency. Each of your accounts might have fixed charges you would have saved if you were using a single account for all currencies.