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In today's financial landscape, business banking clients are becoming more aware of the importance of choosing the right banking partner, yet many still overlook the crucial task of assessing the stability and reliability of their chosen institution.
Recognizing red flags and assessing whether your bank offers the necessary technology and tools to meet your needs is essential because it not only impacts your financial security but also the future outlook of your business. Here are the top four signs that it is time to make a change, and how to identify the right banking partner.
Four Signs It’s Time to Change Banks
1. The Support Team Isn’t Responding
Even if the majority of banking functions and features are accessed digitally, all banks should have a robust team that can answer questions and respond to client needs. If your business has difficulty reaching your bank’s support team, or when you do connect, they fail to address your questions or respond to your needs in a timely manner (resulting in ongoing issues), consider this a glaring red flag. This indicates that it’s time to reevaluate your banking relationship.
Without a responsive Client Services team—which often happens as a result of the team being understaffed or underfunded—they cannot deliver the personalized service and comprehensive support that is supposed to make a bank so valuable. Without this investment, your banking experience falls short of its potential, leaving your needs unmet and business at a disadvantage.
2. You Experience Frequent Technical Issues or Data Breaches
Cybersecurity is imperative in financial services. Business clients should feel confident that both their funds and their data is protected from unauthorized access and cyberattacks. If you’re routinely receiving alerts about technical issues or suspicious activity, alarm bells should ring. Cyberattacks are inevitable, but frequent occurrences of downtimes or unexplained transactions and account activities are a sign of serious vulnerability, indicating that your bank isn’t properly defending itself or protecting its clients. In addition, if your bank doesn’t take swift action to respond to an attack or reassure clients with adequate support, cybersecurity is likely not a priority.
Ensuring robust security measures is essential for maintaining trust and safeguarding your financial assets. A quality banking partner is proactive and transparent, using guardrails to prevent attacks from happening and responding swiftly to any security incidents that may occur. While this mostly happens through back-end systems and cutting-edge technology that identifies potential crimes and deters attackers, it also requires reliable client-facing protections, like multi-step identification, strong password requirements and educational resources. Digital banks have a responsibility to invest in cybersecurity through innovative firewall and malware technology as well as fraud and security experts that track and proactively stop attacks before they occur. If your bank isn’t investing in these systems or using outdated technology, it is a clear indication that it does not prioritize security, and you must take action to prevent irrevocable harm to your business.
3. You’re Paying Higher Fees Than Expected
Many banks and fintechs promote free banking, but all too often, after clients open an account, there are hidden fees and additional costs to access services that were initially offered under the guise of being free. If your business is paying unexpected or excessive fees, it is time to reconsider the banking relationship. A reputable bank provides a transparent fee structure, and top-tier digital banks offer a comprehensive suite of services and tools at no cost.
Even when the bank expands and enhances its technology infrastructure, tools, services, and new features should be offered as a perk of being a loyal client. After all, banks and fintechs are expected to routinely update and upgrade technology to keep pace with the evolving market, and it should happen without passing additional costs onto clients.
4. Your Current Bank Lacks Products & Services You Need
Business clients need a banking partner that understands the unique challenges and opportunities they face. If you find that your current bank fails to provide robust products or services that your business needs, it’s time to consider switching. A major sign is the lack of advanced digital banking tools and innovative solutions, such as automated accounting integrations, efficient cash management systems, real-time transaction monitoring, or seamless payment options. Plus, a lack of specialized business support, such as dedicated account managers or experts available to provide industry-specific advice, further highlights their inability to cater to your evolving needs.
Ultimately, if your bank’s services are outdated or inflexible, it can impede your business’s progress, signaling the need to find a banking partner that offers the comprehensive and adaptable solutions your business deserves.
Identifying a Top-Tier Bank
These four red flags are a sign that it is time to start shopping for a new bank, but you must be able to properly identify and vet potential banking partners to avoid entering another mismatched relationship. An industry-leading bank has the exact opposite of these red flags: a highly responsive Client Services team proven to resolve issues efficiently; a resilient cybersecurity program; a transparent fee structure that covers all services and features offered; and innovative digital banking solutions. To ensure your banking partner can meet this criteria, ask questions, call and speak directly with the Client Services team, and seek honest and transparent feedback. There should not be a high barrier to find out information or to learn about the bank’s systems. It should be straightforward and hassle-free.
Beyond these four features, the right banking partner will provide you with a sense of safety and security, knowing that their platform can grow and scale with your company and make business banking easier than ever. These qualities set the bar high, but they are very important and achievable. You should expect nothing less.
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Ritesh Jain Founder at Infynit / Former COO HSBC
04 October
Nick Jones CEO at Zumo
Nkiru Uwaje Chief Operating Officer at MANSA
03 October
Dirk Emminger Managing Director at knowing finance
02 October
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