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Rising costs are impacting everyone – businesses included. When it comes to looking at where to streamline financial operations and cut costs, many are seeing traditional banking methods at the top of the list. Reasons include the time lost on complicated processes, high money transfer fees, and lack of real-time transparency.
The good news is, there are alternatives.
Dynamic, real-time, and transparent money transfer solutions, offered by fintech companies like Moneynet. FCA-approved, founded on years of experience, and essential for staying competitive and efficient in today’s challenging global market. This blog shows what’s on offer.
Traditional banking used to be the only option for businesses to manage their finances. And for many years, that was sufficient – even if there were limitations.
Yes, cheques (remember those?) took a few days to clear. Accessing banking services meant visiting branches, queuing up to see a cashier, or perhaps an appointment with the bank manager. Transferring money internationally involved paying a fixed fee, and then hoping currency volatility would be kind to your exchange rates.
Of course, as the world has become more connected, expectations have shifted. Businesses want to expand globally, while customers are used to on-demand self-service. This new reality has revealed the limitations of traditional banking.
One of the biggest complaints about traditional banking is the high fees associated with international transactions.
Banks often charge significant amounts for currency conversions and cross-border transfers. Sometimes a fixed amount, or a percentage of the total.
Either way, these fees can add up quickly, eating into profits for global transactions, and placing a heavy financial burden on businesses. Some banks highlight ‘zero fees’ – but sometimes the exchange rate is less competitive, or may only be available if you and the recipient have accounts with the same bank.
Transparency is business-critical for financial transactions – yet is often where traditional banking falls short. Variable costs, such as currency exchange rates and commissions, can catch businesses off guard.
Bank statements, dense with data, and without user-friendly filters, can be confusing and lack detailed information about these transactions. This lack of clarity makes it difficult for businesses to keep track of their finances accurately, and any discrepancies or fraudulent activities may take longer to surface.
Businesses like yours work hard – and so should your money. That’s why it’s so frustrating to wait around for bank transfers to clear. After all, the world is used to being able to tap to pay instantly, with either card, phone, or wearable.
There’s simply no need for settlements to lag behind, potentially disrupting cashflow and reducing day-to-day liquidity. This is particularly problematic for businesses in imports/exports. Where quick payment turnarounds can provide a form of currency in terms of trust, alongside currency in its fiat form.
Yes, there is a human connection with visiting traditional banks. However, it should be available on your terms, rather than when the bank decides.
For example, when there’s a hold on a specific account, and you’re expected to visit the physical branch to resolve the issue. Bring multiple forms of ID, including paper-based utility bills when all your providers are digital-only, and during office hours so you have to take time out of your day.
Further time is lost when managing multiple accounts across different currencies, and logging into separate banking systems, handling multiple bank accounts.
The amount of manual input takes time, and can lead to errors from accidentally entering incorrect figures.
In response to the limitations of traditional banking, a new wave of financial technology (fintech) solutions has emerged.
These solutions offer simple, transparent, and cost-effective money transfer services. They fit around the needs of modern businesses, rather than expecting modern businesses to fit around them.
Here are some of the key benefits of these innovative solutions and how Moneynet helps businesses leverage them:
Fintech companies such as Moneynet often have lower overhead costs than traditional banks. The savings can be passed onto businesses.
Sometimes reduced costs are down to having no physical sites; other times it may be because of no legacy systems (such as the ‘64-year-old programming language that hardly anybody knows anymore’).
The modern infrastructure allows them to offer more competitive fees and exchange rates. This cost efficiency can be passed on as significant savings for businesses, particularly those that conduct a large volume of international transactions.
Moneynet enhances cost efficiency by offering access to payment networks like SEPA (Single Euro Payments Area) and local currency transfers, harmonising and reducing transaction costs.
These pan-European options enable businesses to save on international transactions. Transparent fee structures also allow businesses to know exactly what they are paying for, with no hidden charges.
With Moneynet, you can complete transactions almost instantly or within a few hours.
Funds can be available when needed, for you and your customers. This rapid transfer capability is especially beneficial for businesses that operate on tight schedules and need to make timely payments to suppliers, employees, and partners.
Transparency is a cornerstone of fintech solutions, and Moneynet in particular. Moneynet provides trackable and traceable records of every transaction on-demand, eliminating any bottlenecks that come from either downloading traditional bank statements in pdf, or waiting several working days for paper versions.
By having the data available in one dashboard, businesses can track their financial activities, spot discrepancies, and ensure accurate bookkeeping – from one centralized location.
The platform also offers real-time balances in multiple currencies, providing businesses with instant access to their financial standing, ensuring all stakeholders access the same information.
Modern money transfer solutions offer unparalleled accessibility for businesses that need to move fast. Nowadays, that’s pretty much all of them. Fintech apps and platforms offer competitive advantage, allowing finances to be managed from anywhere in the world.
Ease-of-use adds another element of momentum. Moneynet’s multi-currency accounts can perform transactions, check balances, and review transaction histories – in a few taps.
The platform integrates seamlessly with accounting software and other financial tools, consolidating all financial data in one place and simplifying management processes. This allows businesses to harness third-party advantages and tailor services to their specific use cases.
Advanced security measures, including blockchain technology and two-factor authentication, protect funds and personal information, which are crucial in today’s evolving regulatory environments.
By embracing Moneynet’s solutions, your business can enjoy lower fees, faster transfers, enhanced transparency, and greater accessibility.
Moneynet’s smart wallet offers a comprehensive suite of features built for today’s global businesses. In other words, you gain a proven, powerful and productive platform to streamline financial operations and drive growth.
Book a chat to find out more.
