10 Things to Do Before Migrating Your Business Bank Account to a New Bank
Written by
- Redaction Team
- Business Planning, Entrepreneurship
As your business hits new milestones, it may have to reconsider old relationships and, perhaps, move on from the ones that may be holding it back. This doesn’t just apply to suppliers and employees, but also to your business’s service providers, especially its main bank.
The reason is simple. Your business’s bank may be handling hundreds or even thousands of your transactions every single day. If you could have a bank that offers better returns and fewer headaches, you’ll be able to accelerate your business’s growth while also saving an incalculable amount of time.
Still, whatever your reason for switching banks, migrating to a newer, better business banking provider shouldn’t be done on a whim. Remember to do these things before making what just might be one of your most important business decisions to date:
1) Think About What Your Business Can Achieve with a Different Bank
Before anything else, work with your accounting and finance team to map out your regular banking activities. In particular, look at how often you have to transfer funds, process payrolls, disburse allowances, or pay suppliers. Identifying these patterns will help you get a handle on what specific features and tools you’ll need from your new provider, keeping you from committing to a less efficient solution.
2) Compare Deposit Interest Fees
In the Philippines, traditional banks are not exactly known for having the most generous interest rates, particularly for smaller businesses. Thankfully, a new generation of digital-first banks like Maya has changed the playing field with much better interest on deposits compared to traditional options. With better rates, your growing business can increase its working capital without extra effort.
3) Look at What Services and Apps Can Be Integrated
App integrations are everything for some businesses, particularly when payrolls and payments are concerned. Make sure your next business banking provider can also offer the integrations and services your business needs to streamline its growth.
4) Review Your Next Bank’s Security Features and Fraud Protections
Make sure your new bank account is credibly protected against current and future threats. At the minimum, desktop and mobile banking apps must include basic safeguards like multi-factor authentication, transaction alerts, and security customizations for freezing accounts and controlling fund access. Also, make sure your bank offers 24/7 fraud monitoring and a full selection of customer support systems.
5) Understand the Support System
Speaking of support systems, there may be times when you need fast answers to what might be very expensive questions. For example, you eventually need to clarify a transfer delay or resolve a supplier payment issue. Make sure your next bank offers a variety of support channels, including dedicated business lines, live chat, and email. Also, if the bank offers an online support library and resources that you can look up on your own, this can be a green flag that shows how much the bank values its clientele.
6) Notify Your Team, Partners, and Clients
Switching your bank account will affect more than just your internal books. Your employees, vendors, and regular clients may all need to be informed of the change. Proactively informing your stakeholders will minimize any confusion, particularly if you have scheduled debits or recurring payments tied to your old bank details.
7) Review Any Related Compliance and Documentation Requirements
Before going live with your new business account, check what documents or certifications you may need to submit. This is especially important if you run a corporation or have a business in a regulated industry. Staying on top of these requirements can help keep your new account from getting mistakenly flagged for fraud, thus keeping your cash flow safe.
8) Keep Your Old Account Open for a Few Weeks
Never close your old business account before your new one is fully operational. While it can be a slight hassle, keeping both accounts running in parallel for a few weeks will give you enough time to transition transactions and, most importantly, receive pending accounts receivable and other payments. This overlap period also gives you time to test your new bank’s system, bringing us to the next consideration.
9) Test Transaction and Account Update Speeds
Once your new account is active, test how quickly transactions reflect on your mobile or desktop app dashboards. Fast updates may be crucial if your business operates on tight schedules or needs immediate confirmation of payment receipts. In this regard, you’ll be well-served by a business banking solution from a trusted partner like Maya Bank.
10) Transfer Funds in Controlled Phases
Lastly, avoid shifting all funds and settings at once. Start by gradually redirecting incoming payments to your new account, then follow up with outgoing transactions, giving yourself time to do everything correctly. You can also use this time as a chance to clean up any outdated or redundant payees and ensure you’re not carrying unnecessary expenses into your new setup.
You Next Bank Can Set the Stage for Smarter Growth
A change of business bank account can be a rite of passage for your business—a signal that it’s ready for more growth and greater things. Thankfully, the Philippines now offers a wealth of options for businesses looking for higher interest on deposits and smarter tools for managing money. With a bit of research, you should land the right banking partner and open the door to more seamless and profitable operations moving forward.
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