• ENEN
    • IT IT
    • FR FR
    • DE DE
    • ES ES
PARTNER LOGIN
  • ENEN
    • IT IT
    • FR FR
    • DE DE
    • ES ES

Auriga

  • COMPANY

    • About Us

    • Auriga History

    • Group

    • Our Values

    • Our Network

      • Partnerships

      • Certifications

      • Suppliers

    • CSR (ethical code)

      • CSR – Corporate Social Responsibility

  • BANKING

    • Overview

    • Needs

      • Channel Integration

      • Monitoring network

      • Marketing & Customer Relations

      • Accessibility of banking service

      • Corporate Banking

      • Banking Data Analysis

      • Branch of the Future

    • Products and Solutions

      • Shared Services

        • WinWebServer Architecture

        • Proactive Network Monitoring

        • One to One Marketing

      • ATM / Kiosks

        • WWS ATM

      • Internet / PC

        • WWS PC

      • Mobile Banking and Payments

        • WWS Mobile

      • Electronic payments

        • MyBank

      • Bank Marketing & Digital Signage

        • WWS One to One OMNIA

        • WWS Signage

        • WWS Perfect

        • WWS RSS Feed

        • WWS Simply Feed

      • Network Monitoring & Fraud Management

        • WWS Proactive Monitoring Manager

        • WWS Fraud Management System

        • WWS Simply Check

      • Call Centre

        • WWS Help Desk

      • Cash Handling

        • WWS Cash Handling

        • WWS Cash Management

      • Digital Invoicing and Document Management

        • WWS e-Invoicing

      • Branch

        • WWS Fill4Me and Bank4Me

        • WWS Greæter

        • WWS Customer Management

      • Business Analytics

        • WWS Business Analytics Management

        • WWS Asset Management

      • Cyber Security Platform

        • Lookwise Device Manager

  • NEWS & MEDIA

    • News

    • Press Release

    • Press Review

    • Blog

    • Videos

    • Infographics

  • RESOURCES

    • White Papers

    • Customer stories

    • Research

    • Brochures

  • CONTACT

    • Contact us

  • CAREERS

    • Work for Us

    • Online application

    • Job vacancies

Blog

  • Home
  • News & Media
  • Blog
  • Business Bank Accounts: the Fight has Begun
Business Bank Accounts

Business Bank Accounts: the Fight has Begun

15 May 2020 / Blog

The past 12 months have seen many challenger banks step into the business banking world. There have been great promises made, but businesses have a large range of needs.

Can the likes of Monzo and Starling truly succeed in this space?

In this blog, we look at where challenger banks can improve, and where high street banks still have the edge. The blog will also refer to our May 2019 blog post on small businesses – and emphasises why branches and ATMs are essential for many SMEs. We’ll also discuss how high street banks may adopt a lean branch models to help close the gap.

Challenger banks will need to be able to provide a seamless user experience to convince small business owners to make the move from legacy banks and build customer trust and loyalty right from the start.

In order to succeed in the already busy banking sector, they will need to have a differentiator.

At the moment, we are seeing that Starling is targeting female customers by championing women in finance and organising women in business networking events. Whereas, Monzo’s Business Pro account focuses on freelancers by calculating their tax based on annual income.

High street banks aren’t going anywhere

This is where high street banks still maintain an advantage – many have been around for decades and have managed to retain customers over the years, who have recommended their services to family and friends.

While challenger banks have a competitive edge due to the fact that they’re digital natives, they know how to leverage their customers’ data to create bespoke journeys.

Therefore, it is essential that our high street banks invest in the modernisation of their IT infrastructures and adapt their branches so that they make the most out of their ATMs. Especially as a large majority of consumers prefer to pay with cash or depend on cash to make payments.

For instance, those from poorer economic backgrounds find it easier to stay in budget using cash, tradespeople who are often paid in cash, and those without a business bank account.

Watch out for fees

Another reason why businesses may decide to use high street banks is because the nature of debit or credit card payments is quite costly.

According to Handepay and Small Business, to accept card payments, small businesses must factor in processing fees including basic rates for individual transaction processing, premium rates for processing transactions above the basic rate, plus fees for payment authorisation too.

The average business will be expected to pay £1 per day to own a card terminal; the cost quickly adds up over time and eats into profit margins, so cash can be far more economical. So high street banks need to be able to provide access to cash via their branch ATMs.

Wherever, whenever

In addition, bank branches are a vital resource to small businesses given that they offer access to a wide range of financial services, from cash depositing and video banking to loans support and even financial advice.

Unfortunately, many small businesses are yet to benefit from this support during normal banking hours, which could affect their sales. Those living in rural or remote locations may also not have a branch nearby and have limited access to online banking services, which results in businesses closing for longer periods.

So, it is fundamental that banks are able to provide access to financial services to businesses in rural communities. By leveraging new technologies, such as video banking, visitors will be able to tap into remote tellers 24/7 via a video link.

Portuguese retail bank, Millennium BCP, is already enjoying the benefits from using this technology, as it allows the bank to continue to serve customers outside business hours in an efficient and cost-effective way.

This is particularly important during COVID-19 as the need for SMEs to have access to financial services, whenever they need to safely and securely, is more important than ever.

The benefits of lean branches

In future, more and more legacy banks may decide to run white label ATMs and branches to remain competitive.

Whilst the cost of running ATMs can be high, white label ATMs (machines owned and operated by non-banking organisations) could assist larger businesses in boosting profitability and driving additional revenue streams in rural locations, as they receive an interchange fee from the bank each time the ATM is used.

Plus, by creating a white label branch, whereby a bank shares its branch with another bank or organisation, it enables them to use the space or technology for a concession – it could be for currency exchange, a café, or even a community hub.

We are witnessing an increase in lean bank branches as high street banks and challenger banks attempt to close the gap.

In the near future, it will be common practice for banks to provide a physical location offering banking services that have been optimised to reduce operating costs, boost efficiency, and maintain high levels of customer satisfaction.

     
  • Tweet
  • News
  • Press Release
  • Press Review
  • Blog
  • Videos
  • Infographics

SUBSCRIBE TO THE NEWSLETTER

Subscribe today and you will get:

  • News on software solutions
  • Customer stories
  • Invitations to industry events and conferences
  • Detailed reports
  • Market research
  • and much more!
CONTACT

HEADQUARTER - BARI
Via Don Luigi Guanella, 17
70124 Bari - Italy

TEL: +39.080.5692111

info@aurigaspa.com

Milan office
Rome office
Brussels office
London office
Madrid office
Pamplona office
Mexico City office

BUSINESS CONTACTS
Niccolo Garzelli - Auriga - Footer

Niccolò Garzelli Milan office
niccolo.garzelli@aurigaspa.com

MARK ALDRED London office
mark.aldred@aurigaspa.com

Stefano Cipollone Milan office
stefano.cipollone@aurigaspa.com

Daniela Azzolini Milan office
daniela.azzolini@aurigaspa.com

MARTIN ESPINELMexico City office
martin.espinel@aurigaspa.com

lukasz-feluch

ŁUKASZ FELUCHLondon office
lukasz.feluch@aurigaspa.com

RUDY DE WOLFBrussels office
rudolf.dewolf@aurigaspa.com

EXPLORE
  • About Us
  • WinWebServer
  • Blog
  • White Papers
  • Research
LATEST NEWS
  • Auriga-trends-2023-blog-ENG

    Banking and fintech trends to watch in 2023

    24/01/2023
  • f1-solutions-image-press-release

    AURIGA EXPANDS INTO CENTRAL & EASTERN EUROPE MARKET FOR DIGITAL SELF SERVICE BANKING TECHNOLOGY

    19/01/2023
  • atm-operation-at-bank-blog-ENG

    Protecting access to cash in a digital world

    20/12/2022

Connect with us

SUBSCRIBE TO THE NEWSLETTER

Auriga Spa - Copyright © 2022 - All rights reserved | Legal Notice | Privacy Policy
P.I. 05566820725 - Capital € 1.196.055 i.v. - R.E.A. 426675

TOP
We, and third party websites you may interact with via our site, use cookies to collect site usage data and improve your experience, this includes permanent and profiling cookies.
By clicking ‘Accept’ you agree to allow cookies, however you can disable this through your browser settings at anytime. If you opt to totally or partial disable cookies, this might compromise some features on the website.
For more information on our cookie policy, go to the Legal Notice page.
Accept

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT