Is Traditional Bank Out? Find Out the Best-Fit Banking Platform Nowadays
Contributed by AsiaBC | 30 June 2022
Your Hong Kong offshore company is all set and rolling, but how about your bank account to support it?
With different banking services in the market, it can be quite confusing which one best-fit your business needs, and you will probably tell yourself that a personal bank account can keep your company prime and steady. But that’s a big NO-NO!
To our dear entrepreneurs, let us share why having a business bank account is important and beneficial to your Hong Kong company.
Discover and learn from this blog :
- What Is a Business Bank Account
- A Bank Account as Your Business Essential
- The Diverse Money Platforms
- Their Strength and Weaknesses
- Hong Kong Bank Account Opening
- The Best-Fit Alternative for Your Business
What Is a Business Bank Account
A Business Bank Account is an account solely used for business transactions. Using a Corporate Bank Account instead of a Personal allows you to track your expenses, receive payments under your company name, manage employee pay, and simplify tax reporting.
A Bank Account as Your Business Essential
- Builds your credibility – It helps you create a credible image for your clients and potential investors.
- Accurate bookkeeping – Separating your business from your personal account makes it easier to track your company expenses.
- Clear audit trail – Having a different bank account for your business keeps a clean and transparent record of your revenues and expenditures.
- Keeping it professional – Issuing a check to your supplier or providing your account number to your clients with your company name gives the impression that your business is legit and you, as a business owner, are taking it seriously.
The Diverse Money Platforms
- Traditional Banking – The most well-known financial institution with various banking services — deposits and withdrawals, loans, bill payments, ATMs, and online and mobile banking. What sets this apart from all up-and-coming financial services is its physical presence. Traditional Banks have headquarters and regional HQs with branches located across the countries to cater to their valued customers.
- Virtual Banking – A digitalized type of banking service that provides to its local and international clients online. Its services are similar to Traditional Banking but differ significantly in client interaction since Virtual Banks don’t have any physical branches.
- FinTech – A portmanteau of the words’ Finance’ and ‘Technology.’ FinTechs are also banking alternatives that use technology to enhance or automate financial services, products, and processes. FinTech is a safe platform as they are partnered with licensed custodian banks & protected by the Deposit Protection Scheme.
Their Strength and Weaknesses
- Have a wide variety of financial products – savings, checking, trust fund, business checking account, wealth management, and investment.
- There are designated branches and ATMs in different local and international areas for the customer’s convenience.
- Flexible banking transactions from face-to-face to online banking.
- Cash is still the traditional form of currency, and customers deal with it frequently, making traditional banks an attractive and convenient option.
- Low or no interest rate at all.
- Various banking fees – cancellation fees, hidden charges, etc.
- Poor customer service that doesn’t understand customer’s needs and doesn’t provide personalized solutions.
- Virtual Banks offer higher interest rates, lower mortgage, and loan rates with less staffing and space expenses.
- You can access your account anytime, anywhere, as Virtual Banks do not close.
- Invests in advanced technology and online tools to have a robust and comprehensive new set of features.
- No more paper statements, driving errands and building fewer buildings make it environment-friendly.
- Delayed money deposits to your account because of the lack of physical branches.
- Due to planned maintenance or unplanned system glitch, websites or apps can go down, which keeps you from making a bank transaction.
- Without face-to-face interaction, there is a possibility that your concern cannot be addressed and resolved correctly.
- Like Virtual Banks, FinTechs refrain from charging additional costs. They also enabled combined physical and digital payment methods that consolidate multiple bank accounts or cards using one connection.
- They also maintain world-class compliance and security to ensure every transaction is correctly reviewed, detect anomalies, and fix them quickly and effectively.
- With technological advancement, transactions, processes, and systems have become faster, making them accessible to consumers anytime.
- FinTechs use AIs and automation processes, making the application approval faster.
- User Privacy can be a major issue. Mishandled systems and information in the world wide web are prone to hackers.
- Different companies developed their program using different systems that may not all be mutually compatible, making the devices have trouble with specific apps.
- With a larger network, maintenance can be tricky for FinTech companies.
Hong Kong Bank Account Opening
Hong Kong welcomes more and more entrepreneurs to do business with them. The city’s list of prestigious traditional banks, virtual banks, and FinTechs continuously adapt to their clients’ needs making convenient bank account opening their ultimate goal.
The secret to a successful bank account opening is submitting a filled out application along with the following documents :
|Traditional Banks||Virtual Banks||FinTechs|
|Requirements|| || || |
|Process Time||3 weeks||1 week||1 week|
The Best-Fit Alternative for Your Business
Many factors can play in selecting a banking platform – types of products and services, convenience, accessibility, issue handling and solution, security and peace of mind, and more. Digging deeper into your business is still the best practice to know your venture needs.
If you are a small business owner who caters to local customers and is always on the go, a virtual bank is what you might need. Or, if you are an entrepreneur planning to expand overseas but don’t have the time to go through the tedious and lengthy process of traditional bank account opening, FinTech might be a good option.
Choose a platform that you can easily navigate but still gives you the services your business needs without any hassle.
If you are still confused about which banking service to pick for your company, our email firstname.lastname@example.org and Whatsapp +852 6547 1314 are always open for business. Our hands-on specialists will be glad to assist you all throughout. Time to take it to the next level and open your business bank account today. Shoot us a DM now!