 |
 |
 |
 |
 |
|||
 |
 |
 |
 |
 |
 |
 |
|
||||||
|
||||||
|
 |
However, it is a fact that the majority of small business owners are not using Internet banking: this is for a variety of reasons which will be outlined later. Larger businesses will have separate departments to manage their finance, but for the small business owner, visiting the bank may be a regular activity and will prove costly. Simply paying in a cheque could take 20 minutes (with regards to queuing time) and this does not even include the time it takes to get to and from the bank! If it is not yourself that makes a personal visit to the bank, you may send an employee - either way, the 'time' is paid for. Why Some Businesses Do Not Use Internet Banking If you have read our piece on Internet banking, you will be aware of the disadvantages which contribute to why people are not yet using the resource. However, there is a sharp rise predicted in the number of people using Internet banking in the near future: in fact, it is predicted that over 40% of transactions will occur on-line by 2008. Ok, it is acceptable to believe that people will always personally visit their bank no matter what degree of technology is introduced. But with the popularity of Internet banking expected to soar, it is likely that the need to visit the bank personally will be a less occurring activity. So, what are the main issues that have given small businesses reason not to use internet banking? Firstly, some people lack the basic web skills or they simply do not have access to a PC (or the Internet) at work or at home. However, learning to surf the web is not like learning a new language: computer magazines are frequently published to help the new web user. In addition, PC's can come very cheap today and Internet access is available to all those with a telephone line: there are many Internet access packages (for business and personal use) available to suit your surfing requirements. Some people with 56k modems may be put off by the 'slow' speeds at which Internet banking can be performed. However, the introduction of broadband will give people an incentive to use internet banking, in addition to using the Internet a lot more in general. Perhaps the biggest reason why people will not use Internet banking is the issue of 'security'. Internet security has always been an issue and will continue to be so for the unforeseeable future. However, banks are aware of the issue and have integrated a high level of security into Internet banking ranging from 128bit encryption to unique user IDs and passwords. Some people have simply overlooked Internet banking without giving any thought. If this includes yourself, maybe you should at least consider Internet banking by reading the information provided by your bank. If it turns out that Internet banking would not benefit your business - fair enough, it was never intended to be the perfect solution for everyone. The Main Benefits of Using Internet Banking in Small Businesses The main benefit to small business owners is the amount of time (thus money) it saves. Although Internet banking is restricted to managing accounts and making on-line transactions, it cuts out much of the need to personally visit the bank. Using Internet banking will also increase the efficiency of paying money (bills, debts, wages, etc) as it can reduce the need for writing and sending cheques (which can take up to 5 days to clear). BACS payments can be created via internet banking to pay such money, which is also an efficient way of paying staff wages. The general advantages of Internet banking will also benefit small businesses and if you have read our article on the different ways of paying money, you will further realise the potential of Internet banking. On-line banks,
such as Egg and Cahoot are able to offer their customers higher
interest rates than high street banks due to their reduced overheads.
If the popularity of Internet banking takes off as predicted, high
street banks may also be capable of offering their Internet banking
customers higher interest rates
|
|||||||||||||||||||||
Internet
banking is not only beneficial to manage personal finance, but is
also an excellent resource to manage business finance - particularly
if you are a small business owner. 