Business Account Debunked: How Does It Work and Is It Safe?

Singapore has scripted Asia's most successful growth story in the last two decades. With the country taking pole position, there has been an influx of new financial instruments aimed at making the lives of entrepreneurs easier. One of these initiatives is comprehensive digital business account.

If you are an entrepreneur, you probably know about business accounts. And it's just as likely that you brushed them aside, thinking you didn't need one. You may even have apprehensions about the safety of business accounts aka neobanks compared to traditional banks.

This article will put all your doubts and apprehensions to rest. Not only are business accounts convenient and safe, but they also flex a range of benefits for business owners and solopreneurs.

Let's see how.

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The current digital banking and business account phenomenon in Singapore

A recent PwC survey unearthed an astounding statistic: 65 percent of Singaporean customers are willing to open an account with a digital-only bank. This statistic is a testament to the growing demand for innovative and convenient banking solutions in the Lion City.

In response to this demand, several new app-only digital banks, or "neobanks," entered the Singaporean market in 2022. These digital banks are not just ordinary financial institutions; they offer a plethora of services ranging from account issuance and money transfer to e-money issuance and digital payment token services.

Business account shaking up the financial industry in the country

The arrival of these new neobanks is expected to shake up the banking landscape in Singapore. Not only will they pose formidable competition to traditional banks, but they will also challenge the existing payment institutions that offer digital business accounts for Singapore-based entities. This heightened competition will lead to a more customer-centric and technologically advanced banking sector, ultimately benefiting businesses and individuals alike.

Higher convenience at a lower cost

One of the key advantages of digital business accounts lies in the convenience and cost efficiencies they offer. Customers can open accounts online within minutes, enabling them to swiftly embark on their entrepreneurial journeys. Entrepreneurs can get a business account loaded with features at lower fees and better exchange rates, which results in significant savings for both customers and providers.

The future of banking in Singapore is undeniably digital

One of the key advantages of digital business accounts lies in the convenience and cost efficiencies they offer. Customers can open accounts online within minutes, enabling them to swiftly embark on their entrepreneurial journeys. Entrepreneurs can get a business account loaded with features at lower fees and better exchange rates, which results in significant savings for both customers and providers.

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Who should use a business account?

A business account is for anyone who has or wants to run a business, regardless of its size. You can use a business account if you are:

• Solopreneur
• Small and medium-sized enterprise (SME) owner
• New business owner (or plan to start a new business, in which case, the first thing you should do is get a business account)
• Co-own a partnership firm

For several entrepreneurs and new startup owners, the Grof Business Account has been the perfect starting point for managing their business finances correctly and efficiently.
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→ Get in touch for more information

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How do digital business accounts work?

Brick-and-mortar institutions once reigned supreme in the world of banking. You had to physically visit their premises to open and manage accounts. But digital banking changes all that.

At its core, a digital business account is a financial solution designed specifically for businesses. With only a laptop or smartphone and an internet connection, you can conduct all your banking operations online. Unlike personal accounts, digital business accounts offer a suite of features and functionalities to facilitate seamless financial management in a way that personal accounts don't.

Here is everything you get with a business account:

• Online banking and mobile app with advanced security features
• Higher transaction limits and lower fees
• Business insurance and protection plans
• Dedicated customer support and expert advice
• Business debit and credit cards with rewards and cashback options
• A unified platform where you can track your income and expenses, file your taxes, and comply with legal requirements.
• Business loans and overdrafts with competitive interest rates
• Additional features such as invoicing, payment processing, and expense tracking.

But what does all the above mean for you as an entrepreneur? How does that translate into efficient business payments for you?

Real-time access to financial data

First and foremost, a business account gives you real-time access to your financial data, so you can monitor your transactions, balances, and cash flow instantly. With our Grof Business Account, you get a unified dashboard from which you can glean valuable insights into your financial performance and put your finger on the pulse of your financial health. You make informed decisions, which is always a precursor to proactive financial management.

Improved accounting process

Some digital business accounts can function as no-frills accounting software, while others can integrate with accounting software. Grof can simplify your bookkeeping by keeping manual data entries to a minimum. This seamless integration automates the recording and categorisation of transactions, minimising the risk of human error and streamlining the reconciliation process.

Tailored to your specific needs

You can get access to customizable features so that you can tailor your account to your specific needs. From setting up multiple sub-accounts for different purposes to defining access controls for employees, these customisable features enhance flexibility and control over financial management.

Business account and beyond

A business account will arm you with the ability to access additional financial services beyond banking. Many digital banking providers offer partnerships or integrations with third-party service providers that open up a gamut of services, one of it is accounting integration. This comprehensive ecosystem allows businesses to streamline their financial operations and access a broader suite of services from a single platform.

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How Digital Banks Differ from Business Accounts?

If you go with the traditional business banking setup of towering buildings and intimidating queues, you will have to put up with a realm of complex fees and stringent account requirements. However, business account is emerging as a disruptive force that is altering the business banking landscape forever.

Digital business accounts differ from traditional business bank accounts in four major ways:

Flexible approach to fees

In a world where the burden of excessive fees is lifted, your business can scale and flourish without being weighed down by exorbitant charges. Neobanks have revolutionized the fee landscape by adopting a "freemium" business model, redefining expectations for banking services. Unlike their traditional counterparts, digital banks embrace a fee structure that is either zero or close to zero, providing businesses with unprecedented financial freedom.

Low maintenance

While traditional banks have long relied on hefty maintenance fees and hidden costs, digital banks have shattered this paradigm. Take, for instance, Grof Business Account, where you can experience all the joys of banking without paying any account fees, overdraft fees, or being compelled to maintain a minimum balance. This newfound liberation empowers businesses to allocate their financial resources strategically, propelling growth and innovation.

Traditional banks, on the other hand, are a far cry from the simplicity of digital banks. Imagine being subjected to labyrinthine fee structures or hefty monthly account fees unless you maintain strict minimum balances. Even then, there's no escape from the possibility of being blindsided by hidden charges for utilizing non-branded ATMs, transferring money, or wiring funds. These practices can place an unwarranted burden on your business, limiting your ability to navigate the financial landscape with ease.

Simplify business banking

The differences are not confined to fees alone. Business accounts are the pioneers of convenience. They introduce a world where banking transcends physical boundaries. With service providers like Grof, you can break free from geographical constraints and operate on a global scale. The limitations imposed by traditional banks fade away as your business gains the ability to manage multiple currencies, conduct international transactions, and access a wide array of financial services at your fingertips.

This newfound accessibility can help you seize international opportunities, expand your reach, and foster seamless cross-border payments.

Readily Accessible 24/7

Traditional business bank accounts often adhere to rigid processes and operate within defined time frames. Digital business accounts, on the other hand, are not limited by time and place, operating 24/7 around the year to cater to the needs of your business. Whether initiating transactions, monitoring balances, or analysing cash flow, digital business accounts give you unparalleled control and flexibility over your financial affairs.

→ Find out the pros and cons of neo banks

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How does a business account keep funds safe?

Security of funds is one of the primary concerns that business owners have when deciding on a business account. How do you trust a neobank that operates online without a physical branch or a deposit insurance scheme? What guarantees do they have to safeguard your funds from theft, fraud, and system failures?

The answer is business account, like Grof, invest massive number of resources into improving their online security. These basic security measures as required by law include encryption, multi-factor authentication and fraud monitoring. Plus, here’s a breakdown on how they manage your funds.

Fund Safekeeping

Business accounts such as Grof prioritise the security of their clients' funds, even without possessing a bank license. They usually achieve this by establishing partnerships with regulated financial institutions. Here's how it works: The funds are securely held in a segregated account at the trusted financial institution, with the added assurance of government-backed insurance.

In the unlikely event of the company experiencing financial distress, the funds will be promptly returned to the customer. This commitment to safeguarding your assets is an integral part of our dedication to providing peace of mind and financial security.

Enhanced security measures

A multi-step account login process that adds an extra layer of security to your account by requiring you to verify your identity with a second device or enter more information than just a password. On top of that, they encryption, a method by which your information and data is turned into a code, protecting your sensitive information.  This code can only be deciphered by authorised parties.

Fraud monitoring

Neobanks utilise fraud detection to safeguard your accounts by using monitoring system to detect suspicious activities on your account. This prevents fraudulent activities, keeping your funds, data and information safe.

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Conclusion

Business accounts are an absolute game-changer for all entrepreneurs and business owners in Singapore. So get ready to optimize and streamline all your business banking operations with Grof Business Account.

We have designed Grof from the ground up, keeping in mind the needs of business owners. Grof will give you access to an incredible ecosystem of financial services that will supercharge your business growth and make managing your finances a breeze.

Sign up for Grof Business Account to experience the ultimate in digital business banking.

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