Startup banking involves banks tailoring their services to meet the needs of growing startups. For starters, every startup is highly likely to choose a financial institution that caters to their specific needs and offers added financial products and services.
Pricing, various account options, customer support, expert consultations, and budgeting requirements are some of the main drivers that lead startups to their suited bank. Besides providing business loans, commercial, corporate and business credit cards, and checking accounts, here are a few things to consider about startup banking.
Offering services with low to no fees for a certain period of time — with no preset requirement and a competitive interest rate — can bring in businesses that are just starting out. This will give businesses the jump start they need. For example, offering a business checking account with no transaction or maintenance fee, unlimited wires (incoming and outgoing), and mobile deposits and payments would be helpful for any new business.
Providing insurance adds another reason for startups to choose your bank. Federal Deposit Insurance Corporation (FDIC) offers insurance up to $250,000 per account. Most banks are FDIC-insured but most online banks and neo-banks do not offer insurance. They tend to work with other banks to arrange for insured accounts.
Online Tools and Integration
Online tools and integrated software for accounting, payments, and gateways make transactions safer and aid cash flow management making it systematic and easy to track. Mobile banking, API banking with real-time reporting, global payments, and administrative controls are some of the features that customers require.
Startups gradually scale and may expand internationally. As a bank looking out for startups, you must consider offering global payment flexibility by providing a multi-currency account, foreign bank account, or foreign currency account. Additionally, you must offer foreign exchange risk services and expert advice on global trade finance for clients to safely navigate the complexities of cross-border business.
Offer Liquidity Solutions
Share solutions that are greatly transparent and can assist in optimizing a company’s returns across local and foreign currencies. Strive to manage a client’s cash position overall with the help of an expert team carrying out effective customer communication, relationship management, and client service.
A treasury specialist team can guide your clients with:
- Asset management
- Investment strategy
- Providing market insights
- Portfolio management
- Credit considerations and more
Including access to top-rated money market funds to guarantee capital preservation would also be beneficial. Offering a dedicated service and ensuring implementation leads to customer trust and loyalty.
Allow clients to set their own permissions for specific users accessing only the data or tools needed to complete their tasks with customizing controls. Set notifications for irregular transactions or suspicious activities. Help clients stay on top of the current fraud and cybercrime landscape by providing training sessions and resources by cybersecurity professionals, sharing best practices and pragmatic skills to protect their company.
Become the Better Choice
Startup banking is specifically for assisting startups to grow and achieve their business goals. It’s to provide them with expert consultation that covers every aspect of managing their finances along with good customer relations and service. It is important to be a financial institution that can handle the growth of a startup and offer dynamic financial services that suit a scaling business every step of the way.
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