What is Business Banking?
Business Banking refers to the financial services provided by organizations to companies, such as business loans, loan credit, savings accounts, and current accounts.
The term “business banking” is used when a bank or division of a bank specializes in providing financial services to businesses. A bank that specializes in giving financial services to individuals is called a retail bank but an investment bank deals primarily with capital markets.
The Business Banking Process in India
The term business banking is also used to refer to commercial banking. Businesses banking encompasses financial services provided by banks to small and medium enterprises owners and corporations.
Increasing consumer and business confidence and positive domestic demand will drive banks’ profits in 2022. The decline in non-performing loans and the rise in net interest margins will boost profitability. Loan growth will be supported by stable capital, funding, and liquidity.
According to the RBI’s “Quarterly Statistics on Deposits and Credit of SCBs”, PSB lending grew significantly to 7.8% in March 2022 from 3.6 percent a year earlier. Credit growth of the banking sector improved to 11.9 percent as of may 6, 2022, as private banks increased their market shares in total banking business in the last few years.
Urban, semi-urban, and rural centres grew credit by double digits in all quarters of 2021–22, with metropolitan canters representing the bulk of total bank credit compared with 1.7% a year earlier.
The utilization rates of working capital in India have improved recently as commodity prices have risen. If the utilization levels were at 70% earlier, they are now at 75–80%, which will help increase credit growth.
The primary source of capital for a business is bank financing, whether it be expansion, acquisition, or equipment purchases. There are several types of loans that business bank offers, depending on their clients’ needs: fixed term loans, short-term loans, multi-year loans, lines of credit, and asset-based loan.
Several banks provide payroll services for small businesses in India. If your business is small or has no need for a bookkeeper, many banks will provide payroll management software or services.
There are several types of fraud protection offered by banks to clients to prevent business checks from being forged. These include issues related to vendor checks, employee fraud, and other issues.
In addition to providing several services beyond the scope of average savings accounts, business current accounts are geared to facilitate business transactions on a daily basis. These services include:
Services available in the Indian market:
· Records and payroll management.
· Services related to tax.
· Payment and invoicing services.
· Savings and checking accounts.
· Loans, credit cards, and credit lines for businesses.
· Fraud prevention and protection.
It is now becoming the norm for Indian banks and their partners to provide business banking services — an integrated solution that can increase revenue, improve conversions, and enhance innovation. Deliver seamless customer experiences across all channels to small and medium businesses.
With the rise in capital and compliance requirements, business banking has attracted a higher growth rate in India due to its corporate banking solutions to small and medium enterprises. “The quality gap is gradually closing as domestic banks win not only places on Indian companies’ bank lists, but also much sought-after lead relationship opportunities.
Benefits of Business banking in India
Having a business account is essential for starting your business successfully. Here are the benefits of having a business account.
· Featuring all the essentials of banking, payments, and accounting in one place.
· Small business benefit greatly from a separate bank account, since tracking expenses, monitoring spending, and avoiding accidental overspending are easier with one.
· You can obtain financial statements and business reports in one place, as well as a product that combines current accounts, payment suites, and expense management.
· An automated financial management system packed with features.
· The company can accept payments via more than 100 ways, including debit and credit cards, net banking, UPI, wallets, etc.
· The fee structure at each bank or banking partner is different. Some banks or banking partner may offer certain services for free it the type of account allows them. Read the terms and conditions carefully before choosing the platform.
· You can create GST-ready invoices and get paid instantly by sending them.
· Business banking service powered by artificial intelligence provides business customers with 360-degree views of their accounts, personalized advice, and insightful insights to help them grow.
· You can simplify your finances and convey a more professional image to your clients and customers by having a business bank account.
The digital transformation of business banking allows businesses to receive all their banking services in one place. They can open a current account, track invoices, schedule payments, pay taxes, apply for loans, and view financial reports through one interface as such Easebuzz Neo.
For a business to manage its finances seamlessly, it is imperative that it has completely visibility and control over their finances.