Home Business Insights & Advice Challenger banking services for SMEs and freelancers

Challenger banking services for SMEs and freelancers

by John Saunders
23rd Dec 19 3:56 pm

Is challenger banking service the future for SMEs? Many people are making the grand switch moving from their traditional banks and joining challenger banks. The ripple effect has had thousands of banks across the UK reduce their operating hours or call it quits and close their doors.

So what could be behind this sudden change of preference? What is it that challenger banking offers that ordinary banks don’t? What is challenger banking in the first place? To find out the answers to these questions, here is everything you need to know about challenger banking services for SME and freelancers.

What is challenger banking?

With the traditional banks, you need to head to your branch numerous times to access different services. But with challenger banks, you don’t have to be physically present to perform functions, make inquiries, or facilitate banking transactions.

Challenger banks are smaller in size compared to traditional banks. Through an app or their website, you can do all your banking online. Need to deposit a check? Instead of going all the way to your branch, you can mail it via the nearest post office.

What’s more, you get regular and accurate notifications informing you of your spending habits, number of transactions, and so on. Challenger banking also absolves you from incurring stringent fees whenever you want to receive or send money overseas.

The Amaiz business banking app, for instance, comes with budgeting tools that can help you plan and better manage your business.

What are the benefits of using challenger banking services?

High street banks are on the losing end because they cannot match the convenience and versatility that challenger banking guarantees. Most banks are still trying to develop services and products to try and keep their customers from switching. But as time goes by, millions of business owners and ordinary people looking for more value swiftly move all their banking functions and needs to challenger banks.

What could be the reason behind this? There are a ton of benefits in store? They include,

Budgeting features

Budgeting features conveniently allow you to plan your spending and monitor recurrent expenditures such as bills, shopping, payroll, and so on.

Free overseas spending

Challenger banking will not charge you for using your card to spend money abroad. With a normal bank, you would have to report that you will be away for a given period. Otherwise, your payments will be rejected if you try to use your card overseas.

With challenger banking, you are free to operate from wherever you want without reporting or having to call someone because your card is blocked.

Enjoy rewards for saving

With challenger banking, you can save and earn an average interest rate of 1.5% on your savings. You can also set targets of the amount of money you want to have saved within a given period. Challenger banks help encourage you to meet those goals by rewarding you with a high interest rate on your savings. The more you save, the more interest you earn.

Instant notifications and reminders

It takes time to peruse through a challenger banking app to glance at various functions like your expenditure, invoicing, and so on. To counter this, the challenger banking app sends you numerous notifications on your spending on specific things lie entertainment or food and more.

If you haven’t met your saving target, or you need to make an urgent payment, challenger banking apps will send you reminders on the same.

Access to unique business tools

Don’t want to have to deal with monthly fees? Challenger banks are completely void of monthly fees. You can store your money for however long without incurring costs in monthly fees for it. Accountancy tools are extra features that you can enjoy only if you have a challenger banking account or app.

Overdraft services

There will be times when money is tight. On such occasions, you need access to overdraft services to get you out of your tight spot. A reliable challenger banking app will accommodate you whenever you need to spend or send someone a bit more than you already have in your account.

Currency conversion services

Seeing as you can use a challenger banking app to spend overseas, you will probably need to change money into different currencies. You may also have overseas clients with whom you want to exchange money.

You can now rest easy because you get to check the rates and convert your money into different currencies whenever the need arises.

Banking services anywhere, anytime

Using the challenger app, you can transact, send money, draft invoices, and generally manage your account from anywhere in the world. Other benefits of using the challenger app include conducting bank transfers, freezing and unfreezing your bank cards, direct debit management, and so much more.

Access to 24/7 customer care

Do you need to make inquiries, ask for urgent assistance or talk to a customer care rep? Challenger banking service offers its clients quality, round the clock customer care services. All 365 days of the year, you will access swift, friendly customer assistance whenever you need it.

Heightened security

It’s easy to mitigate and stop hackers on their tracks whenever you suspect that someone is trying to gain unauthorised access to your challenger banking app. You can opt for voice authentication to access your app or freeze your card if you lose or misplace it. With challenger banking, your money is always safe, and your personal information intact.

Efficient finance management

Using a banking app can make you feel out of touch with your account’s ongoings. But to keep you fully updated about your account status, the challenger app sends you regular updates, cash flow charts, and spending reports to show you how much money you are using, how much money is coming in, and more general information about your account. With this, you have a chance to assess and make the necessary changes regarding your spending and more.

Still unsure whether or not a challenger banking service is for you? You’ll be delighted to know that challenger banks are bound to the same rules and regulations as traditional banks. Your money is always protected under the Financial Services Compensation Scheme. Should your money go missing or the financial institution goes under, you can claim your money back.

There are no loopholes in the challenger banking app/service. If you are a sole trader, a small or medium-sized business owner or a freelancer, you can feel confident using challenger banking services for all your money management needs.

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