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Digital Banks. An Alternative Bank for Your Business

Digital Banks for Businesses. Online Banks, Challenger Banks. Cloud Accounting Gallagher Keane
Business / Cloud Accounting / Digital Banking / Start-Up / Success Story

Digital Banks. An Alternative Bank for Your Business

A Digital Bank Operates Solely Online

A digital bank is more than just an online account. It is a banking organisation that operates solely online. Digital banks give business owners a whole new banking experience. These banks are also known as challenger banks or online banks. All of your account management and banking activities are completed online, using a browser of via the digital bank’s app. Digital banks are capitalising on the rise of technology made for the digital world, offering customer-first features, competitive pricing, and industry-leading technology.  

How do Digital Business Accounts Differ from Traditional Business Accounts?

Having a digital bank means your bank account exists entirely online. Your relationship with your digital bank begins online and stays entirely online. Your money, your data and your paperwork all exist entirely online.

The Benefits of a Digital Business Bank Account

Its Quick and Simple to Open an Online Bank Account.

The process of opening your account with a digital bank is entirely online. Once you have signed up to your digital bank, you can open a digital business account directly through their app, using nothing but your smartphone. All it takes is a few taps, entering some personal information and your online bank account will be up and running.

24/7 Banking

Digital bank accounts allow you to do your banking at any time of the day. You don’t need to wait until the banks open. All functionalities you need from the bank are clearly laid out, including customer service options.

Lower Costs

Digital banks cut out a lot of things that traditional banks require to run. The fact that all your money transfers, bill payments, and general financial transactions are completed digitally removes the human element, while also removing the cost of human labour. 

Enhanced Security

Tools like two-factor authentication provide an added layer of safety around your banking, so you will always know when someone unwarranted is trying to access your account.

Better Visibility and Easier Reconciliation

Digital banks can be integrated into cloud accounting platforms such as Xero. This allows for better visibility across all of your business finances and allows for your reconciliation process to happen automatically.  

Digital Banks for Your Business

We have outlined a list of digital banks that provide an alternative banking solution for Irish businesses.

N26 Bank Account

N26 offer a low-cost banking solution for businesses. The digital bank provides an easy to-use online banking service for business owners.

  • N26 offer remote banking that can be accessed at any time.
  • Customer support service available in many languages.
  • Tagging functionality allows businesses to tag transactions associated with specific projects.
  • They offer a business master card which includes cashback options.
  • No minimum balance required, no account fees and no paperwork required.
  • Variety of business plans which are low cost or free depending on what your business needs are.

Revolut Business Account

Revolut Business Account offer a full digital account, which allows for multi-currency accounts.  

  • Revolut offer remote banking which available at any time.
  • Customer support service provided.
  • Multi-currency accounts allow you to hold, exchange, send and receive funds in over 28 currencies.
  • Easily convert at the real (interbank) exchange rate.
  • Ability to create multiple accounts, allowing you to create accounts for team members, clients or location based.
  • Ability to set spending limits for teams.
  • Allows you to create prepaid business cards for employees that are connected to your main business account.
  • Allows you to sync transactions to accounting platforms such as Xero.

Fire Business Account

Fire provides digital accounts for businesses located in Ireland and the UK.  

  • No set-up costs or monthly maintenance fees.
  • Allows businesses to have sterling and Euro accounts.
  • Real-time features.
  • Compatible with accounting tools such as Xero.
  • Allows you to set up multiple users with different access levels.
  • Allows you to order multiple MasterCard Debit cards for your team.

Wise

Wise, previously known as TransferWise, allows businesses to open an international account online. Wise gives businesses the chance to send, spend and receive multiple currencies with real exchange rates.

  • No set-up costs.
  • Free to receive money in Euro, GBP, USD, PLN, AUD and NZD.
  • Ability to create batch payments with a click of a button. No need to manually pay out all vendors and employees.
  • Small fee to convert currencies in your account and no hidden fees in relation to the rates offered.
  • Integrates with Xero.

Sole Traders and Limited Companies are not legally obliged to have a business account for their businesses. However, it is best practice to have a separate account for your business transactions for many reasons. Having a business account helps you to separate your business accounts from your personal banking. This ensures your bookkeeping is clear and accurate. This allows your business to create more accurate reports and makes your budgeting processes easier.

Get In Touch

Gallagher Keane provides cloud accounting services for many businesses. Our expert team of accountants have a deep understanding of digital banking, providing clients with an excellent standard of service. If you are interested in working with a cloud-based accounting firm, get in contact to see how we can help your business.  

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