A good marketing campaign can really make the difference in attracting new customers within any sector – even online banking. That's according to data from a new survey of 500 UK business leaders and decision-makers conducted by NerdWallet.
This survey into 'faceless' banking found that 44% of UK businesses have switched to an online-only bank in the last 12 months. Shockingly, it seems that the millions these brands spend on advertising has paid off – 42% of businesses said one of the main reasons they switched accounts was thanks to a good marketing campaign.
However, is it really such a great idea to allow marketing tactics to sway your vote when selecting a business bank account?
Commenting on the survey results, Connor Campbell, business finance expert at NerdWallet said:
"Our survey was primarily interested in finding out how many small UK businesses are making the switch to online-only banking providers. What we found was that, not only are almost half of businesses utilising these faceless banks, but many are motivated to do so due to the way these banks market themselves.
"Traditional brick-and-mortar banking has been the norm for businesses for decades, providing essential services including business loans, bank accounts, and credit cards to organisations of all sizes. For these 'underdog' online-only banking alternatives to be gaining so much traction really highlights the power that marketing has.
"However, of course, it is important for business leaders to do their research when selecting a company to bank with, rather than allowing themselves to be led purely on marketing strategies.
"Each online bank will provide slightly different products or services, with their own fees and pricing structures – meaning that a bank with a less flamboyant marketing campaign could actually offer a more competitive product that better suits your business.
"While there is certainly something to be said for the power of marketing as a tool to attract customers, offering a much-needed 'refresh' to industries that have typically been stereotyped as 'boring', this shouldn't be solely relied upon when choosing the right banking provider for your small business."
To help business leaders make an informed decision about who they bank with, Connor has shared the following tips:
Check the services offered by the bank and compare to others
Each bank will offer their own products, and different banks may offer services that are more or less relevant to your business. When deciding on a business banking provider, you should consider what services your business needs, such as the ability to cash a cheque in-app, automatic money transfers, and the option for telephone or online banking.
Additionally, you should be looking out for factors such as monthly fees, costs per transaction, overdraft fees, and any other additional charges that could potentially catch you out.
Compare business bank accounts and loans
Do you want to open a business bank account or switch provider? Perhaps you need a loan to start or grow your business.
Think about how comfortable you are having no face-to-face support
Faceless banking works perfectly for some, but it may not be suitable for all. If your business regularly needs to make more complicated transactions, or you feel concerned about being able to report any potential issues to the relevant support team, a more traditional face-to-face banking service may be more appropriate for you.
Additionally, many banks that have in-person branches tend to offer additional support services, such as providing advice for small businesses – which can be a beneficial learning opportunity that also provides peace of mind, should anything happen.
Copyright 2023. Submitted by Cara Bews of Shout Bravo for NerdWallet
