How does digital banking aid small business operations?
26 November, 2024
Synopsis:
Digital banks have emerged as a valuable addition for small businesses.
Small business owners can leverage these digital tools to streamline their financial management processes, improve security, and gain valuable insights into their financial health.
HDFC Bank MyBusiness Digital Banking enables Small and Medium-sized Enterprises (SMEs) to gain a competitive edge and achieve long-term business success.
Introduction
Small business owners often have to meet their associates and strategists to outline a marketing plan, set sales targets, and evaluate performance. Waiting in long queues at the bank, dealing with endless paperwork, and engaging in time-consuming manual processes aren’t what you want to include in your checklist.
The digitalisation of finances is one such advancement that helps you save time. It is more important than ever in today’s fast-paced business environment.
Digital banking has transformed small business operations. Its tailor-made solutions help you meet specific requirements. This post helps you understand what digital banking is, its role in supporting small businesses, and how HDFC Bank MyBusiness Digital Banking can help.
What is Digital Banking in Business?
Digital banking, in simple terms, includes various tools that allow entrepreneurs to manage daily financial operations without visiting the bank physically. These tools provide a virtual bank, which business owners can access at any time of the day using a computer, tablet, or smartphone. It facilitates Small and Medium-sized Enterprises (SME) payment processing, tracks transactions, manages collections, automates reconciliation, secures business payments, and manages trade and import-export activities. So, if you have to make an international transfer to your supplier instantly, the tools enable you to do so.
HDFC Bank MyBusiness Digital Banking is an all-in-one solution that streamlines financial management and increases business operational efficiency. The various business-friendly features of the platform help you focus on growing your business by taking care of all your business and banking needs. Its tailor-made services are suitable for all kinds of businesses.
The role of Digital Banking in supporting small businesses
SMEs have multiple challenges to tackle. They can hamper your growth and sustainability if you can’t overcome them. Digital banking solutions offer innovative and agile approaches to address your challenges and ensure your business operations are streamlined.
1. Access to finance
The first challenge SMEs face is obtaining finance. The lending criteria of traditional banks are often stringent, which is difficult for SMEs to fulfil. This results in limited access to loans and necessary funds for operational expansion.
HDFC MyBusiness Digital Banking makes loan application and approval easier. Businesses can apply for a Business Loan, Working Capital Loan, or Personal Loan after submitting the required documentation.
2. Cash flow management
Another common challenge faced by SMEs is managing cash flow. They need to track transactions performed under multiple accounts, juggle between tools, and access various statements to understand cash flow. Moreover, visiting the bank to inquire about payments and collections results in delays.
MyBusiness Digital Banking helps SMEs manage cash flow efficiently. Its features allow real-time payment processing, expense tracking, integrating multiple accounts under one Customer ID and login, automating invoicing, and reconciliation. It also secures digital payments for businesses, eliminating the chances of incorrect or fraudulent transactions.
3. Fund transfer facility
Generally, there is a limit to the amount of funds you can transfer from your Current Account. This limit is set to regulate monetary transactions.
However, MyBusiness Digital Banking allows you to request the enhancement of fund transfer limits upto ₹50 lakh per account. This means you can transfer higher amounts to your distributors and suppliers in one go and manage your accounts more efficiently. You must submit the required documentation to set a higher fund transfer limit. By default, the fund transfer limit for Individual and Sole Proprietorship Current Account is ₹10 lakh per day.
Additionally, customers get the option to add an inputter to create transactions on their behalf and send them for approval. The process of creating an inputter is fully digital and immediate.
An inputter can create single or bulk requests using the file upload mechanism for beneficiary addition and funds transfer.
4. Manage working capital and trade services
Small businesses engaged in international business with export-import activities need to comply with various processes. Traditional banking procedures require effort and time. You need to go through various regulations and follow up with different professionals.
MyBusiness Digital Banking enables you to apply for Bank Guarantees and Letters of Credit, facilitate international remittances, upload stock statements, submit import/export documents, and receive real-time updates. The platform enables you to stay on top of your trade services.
Digital banking is advantageous to small business operations in multiple ways. It enables SMEs to complete business payments seamlessly and manage all business banking requirements. HDFC Bank MyBusiness Digital Banking is a financial management solution that helps you grow your business by fulfilling your requirements for banking services.
You can register for the service today if you are an HDFC Bank Current Account holder. The registration process is easy and takes only a few minutes.
Disclaimer: *Terms and conditions apply. The information provided in this article is generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances.
