Business Bank Account - Traditional Bank VS Online-only Bank| North Loop Official Blog
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11 Feb 2021

Business Bank Account - Traditional Bank VS Online-only Bank

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What are online-only digital banks?

If you are a startup founder or a small business owner, you can understand how difficult it can become to access traditional business bank accounts. Your non-standard income source or cash flow may not allow you to qualify for conventional bank accounts.

Online-only banks, however, have broken down this barrier for you and offer instant accounts with less than 10 minutes required for application and approval. If you choose the right online bank, you can also get access to fee-free and premium interest rates compared to conventional banks.

To understand how online-only banks win the battle against traditional banks, let us look at the benefits offered by the former. But before we begin, here is the meaning of digital banks –

Digital banks operate without any physical locations and offer most traditional bank services like checking account, debit cards, wire transfers, invoicing, bill payment etc. at zero fees, better interest rates and added benefits. Benefits of using digital banks over conventional banks -

Higher interest rates -

Online-only bank accounts offer higher interest rates as compared to conventional ones.
Profile image2: Higher interest rates -
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Fewer service charges -

The lack of overhead for online banks means much lesser service charges. At North Loop, you can enjoy zero monthly fees or charges with additional perks. The brick-and-mortar counterparts do not have this cost advantage and pass on the expense to their customers.

Faster approval -

Traditional banks usually take weeks to approve registration and deliver a decision. With online-only banks, you do not have to go through the ordeal of waiting so much.

They offer far more simplified and quick applications and barely require any documentation. For example, you can open an account at North Loop in just five minutes with the least amount of paperwork.

Better digital experience -

Many conventional banks have not even moved to digital media. And those which have offer extremely unintuitive and sub-standard user-interface on their websites or their apps.

However, online-only bank accounts can connect seamlessly with your payment processing accounts, offer a great UX experience and integrate effortlessly with other tech services.

Secure funds -

Technology-driven banks offer extra layers of encryption and fraud monitoring. North Loop itself comes with strong security (256 Bit encrypted) that gets monitored 24*7.

Some of its other security features include 100% SSL-encryption of your login details, FDIC-insured accounts up to $250,000, Mastercard Fraud Protection, instant transaction notifications and the ability to lock or unlock your card immediately when required.

Quick customer support -

If you have ever dealt with a traditional bank’s customer service system, you must be knowing how incredibly frustrating the process can get. The limited after-hours service, long waiting periods, slow redressal of complaints and non-cooperation by bank staff is exasperating.

Online-banks usually offer a huge relief when it comes to this problem. You can enjoy 24*7 phone or chat support and don’t have to deal with multiple bank staff or countless visits to branch offices.

Conclusion -

Online banks have eliminated most of the restrictions of the old banking model. They offer more favourable rates and quick approvals. Their business banking features also come with zero limitations. Overall, online banks make your life far easier and give you the time to focus on other areas of your business or work.

You can open a business bank account with North Loop and enjoy various benefits ranging from AI-powered cash flow analysis, company cards, access to lines of credit, as well as, payroll management, insurance for employees and instant pay-out options.

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.