Every business requires a bank account. Whether you’re setting up a new business or you’re searching for a new bank, there are a few factors that can help you determine which bank would be a great fit for your small business.
While it is true that there is no one perfect bank for everyone or every business, every business owner can consider these factors to choose a bank that is perfect for their business:
- Business Needs – When choosing a business bank, the best place to start is the specific banking needs of your business. Some small businesses are cash-based and as such would need a bank with an easily accessible bank branch while others like online businesses would need a bank that has an excellent online banking system. You see, what a business requires in a bank differs depending on the business. List out the various banking needs of your business and create a list of banks that meet those needs.
- Banking Fees – By now you must have researched enough banks and found a few of them that satisfy the needs of your business right? The next step is to check out what it costs to operate a bank account in these banks. Many banks charge various fees for account maintenance, cheque processing, online transactions, interest rates etc. You need to compare these rates across your list of banks to see which one is more favourable to your business.
- Security – While most banks in Nigeria are insured by the Nigeria Deposit Insurance Corporation (NDIC), you still have to be security conscious when choosing a bank. Verify that it is insured, and even beyond the safety of your money, a good bank should be able to protect the banking data of its customers.
- Customer Support – How accessible is the customer service of the bank? I know this is one area where most banks in Nigeria need improvement, but you need to evaluate how responsive a bank is to your business when you need issues to resolve. Ask current customers of these banks what their experience has been like because poor customer responsiveness can be too costly for you. So, factor in how much self-service and customer service support you can rely on your bank for.
While most banks may seem similar on the surface, simple differences as highlighted above or a focus on small businesses can provide you with more perks and advantages that make them great for your business. Be sure to carry out adequate research before choosing a bank for your business.
What other factors do you consider when choosing a bank for your business?