Assessing the real value of business banking fees
The silent advantage of full-scale banking for small businesses
While it is reassuring that Standard Bank’s business banking fees compared favourably in a recent media review of South Africa’s cheapest business accounts, small businesses should look further than fees when assessing the true value of a business account.
Standard Bank is fully committed to supporting small businesses because we recognise and understand that small and medium enterprises are the backbone of the communities and geographies in which we operate.
“Businesses might start small, but they aspire to a larger vision that involves growth; they are a big deal,” explains Zachar.
While affordable fees are important, especially in the start-up phase, a banking partner able to support business growth is, arguably, even more important. After all, Zachar says, “it is your ability to grow your concept, drive consistent sales and sustain revenue that is the make or break of your business”. As such, she says, “even very small businesses should consider a fullscale banking partner.
Once a business begins operating, most entrepreneurs find they need to do a lot more than transact. Apart from easy and affordable transactional capabilities, all businesses, for example, “need a committed partner able to support them with the tools, digital capabilities, funding and personalised advice required to focus the power of the bank’s entire ecosystem on their growth,” explains Zachar.
While transaction costs might loom large, as a business takes its first steps, building sustainable revenue flows might, for example, even very early on, require access to merchant devices, eCommerce services, world-class cash services or funding solutions in addition to transactional capability. In short, reports Zachar, “very quickly even small businesses need to do more than just transact”.
Standard Bank has developed a philosophy of understanding our clients’ needs and tailoring our solutions to these needs. “So whether an entrepreneur is starting, managing or growing their business, we’ve innovated some truly contemporary business account offerings”, explains Zachar. For example, starting from R5 per month our MyMoBiz Account, offers customers access to a team of expert Relationship Bankers, and a fully-fledged bank and product offering. MyMoBiz remains the best priced offering across comparable transactional capability offered by full-scale institutions in South Africa. MyMoBiz is available to businesses with a turnover of up to R5m per annum, whether operating as sole proprietors or as registered entities. able to deliver “affordable cash management services is critical to all businesses operating in the countless sectors where cash is still king in our economy,” observes Zachar. Despite the expense of transporting, handling, and managing cash, Standard Bank remains committed to business banking customers who accept cash as part of their daily operations and require cash solutions. “To support coin and note needs at affordable fees, Standard Bank retains a large cash-accepting ATM footprint in South Africa supported by coin-accepting ATMs currently piloting in strategic areas” says Zachar.
While cheap, or free, digital-only account options might appeal at start-up. But as a business grows and needs advice, “it’s critical to be able to talk to an experienced Business Banker,” says Zachar. Having a business banking partner that, from the get-go, makes its entire banking, advice, client network and partner ecosystem available to businesses is an incredibly powerful advantage.
From the outset, all Standard Bank business clients, even with entry level pay-as-youtransact business accounts have access to a Business Banker. “This personalised service is enabled both telephonically, for entrepreneurs who can’t leave their premises to perform key banking functions, as well as across key branches,” says Zachar. Critical advice that Standard Bank always shares with businesses is to keep their business account separate from their personal finances.
“A separate business account sets your business up for growth from the start,” says Zachar. As a business grows it is much easier to employ staff, manage large contracts with extensive inflows and outflows and balance income and costs through a dedicated business account. Operating a purpose-built business account also allows banks to guide businesses to the right lending solutions at the right time. It is, after all, “difficult to take on business debt if you are unable to differentiate between personal and business expenses,” observes Zachar.
Either way, Standard Bank advises that all businesses examine their costs on an ongoing basis. Considerations such as choosing between a pay-as-you-transact account or bundled offerings, such as the MyMoBiz Plus account, are important in understanding costs as well as what will work best for businesses at specific stages of growth.
Finally, “when comparing business banking fees, entrepreneurs should be sure to compare apples with apples,” cautions Zachar. Comparing the fees of a digital-only basic transactional business account with the extensive runway of service and personalised advice available According to statista.com cash is still the most
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