In the past, traditional banks were solely responsible for managing all personal and business payment requirements. However, many of those banks had limitations that restricted payments. Of course, people, especially business owners, had to start seeking other reliable alternatives to handle their payments.
Fortunately, technological advancements have introduced such improved alternatives. One of the alternatives people resorted to is the use of virtual accounts, which have gained popularity recently. Even though virtual accounts are becoming more popular, some individuals still don’t know if it’s the right choice for them. Thankfully, that’s what this post seeks to address.
In this post, we’ll compare virtual versus bank accounts and walk you through how to make the right choice for your business. Without further delay, let’s get into it.
Physical Bank Accounts
Physical accounts are traditional bank accounts offered by brick-and-mortar banks and financial institutions.
A physical account often requires in-person bank visits to create and maintain accounts using physical elements such as physical cash, checks, and cards.
Virtual Accounts
On the other hand, virtual bank accounts are non-physical accounts that you can fully operate through a mobile or desktop interface and offer access to various financial services.
You can also refer to them as digital bank accounts. They allow you access to services like creating an account, checking account information, making deposits and withdrawals, bill payments, and so on— all without visiting a bank location.
Essentially, a virtual bank account offers you everything that a traditional bank does, except that you don’t need to waste time in any banking hall. With a smartphone and internet connection, you can carry out financial transactions without taking a step out of your house.
Benefits of Virtual Accounts
Virtual accounts offer a wide range of benefits and that’s why they’re a better option for many individuals and businesses. The following are some of the most important benefits.
Lower Fees
Virtual accounts present a cost-effective alternative to physical accounts as they usually come with lower associated costs. Traditional banks can come with a lot of ridiculous bank charges and additional fees. You can avoid this with a virtual account. All you need to do is pay a small transaction convenience fee and the bank takes care of the rest. The best part is that you don’t need a minimum balance to create an account on virtual platforms like Changera, it is completely free!
Enhanced Security
Virtual banking ensures that your security is covered at all times. Changera uses high-end encryption of users’ details to ensure that there is less risk of compromise of customers’ data. In addition, there are multi-factor authentication and biometric login features to mobile apps and websites for added protection against online scams.
Ease of Accessibility
Using a virtual account saves you the stress of long queues and unappealing customer support that are common to physical branches of traditional banks. You can access banking services anywhere you are around the world without any hassle. All you need is your smartphone and internet access.
Innovative Financial Tools and Services
Budget planning and better account management are way easier with virtual banks. This is because of the customizable nature of virtual banking which provides features like round-up savings, automated bill payments, and saving targets. Plus, virtual banks are usually incorporated with artificial intelligence which can give the customers spending insights and help them set financial goals.
Round-the-Clock Customer Service Support
Most virtual banks offer online and 24/7 customer service which saves customers time and effort compared to traditional banks where they may have to queue for long hours. Additionally, virtual banks employ advanced technology which simplifies many of your banking operations thereby reducing the need to reach out to customer support.
How to Make the Right Choice
Understanding the concept of bank and virtual accounts is important before choosing one for your business. Choosing between virtual and physical accounts will depend heavily on your business needs.
Generally, you may need to consider the following factors to make the right choice.
Volume of Transaction
This is one of the most important factors to consider when deciding the type of account to use.
If your business involves a lot of digital and international payments, a virtual account is the best option. However, businesses with a local presence can go with a physical account.
Cost Effectiveness
If you’re a small business trying to cut costs and limit unnecessary spending, a virtual account is the ideal option for you. With a virtual account, you won’t have to deal with bank charges and account maintenance fees.
Geographical Considerations
A physical account can be advantageous if your business primarily operates locally. This is because you get to have access to branch services and local banking relationships essential for regional business needs.
Alternatively, with virtual accounts, businesses can cater to customers all over the world irrespective of location.
Security
Both physical and virtual accounts employ fraud prevention and security measures. However, virtual accounts usually have advanced security features to safeguard your business’ financial data and transactions.
Changera
Both physical and virtual accounts are services people use to access financial services like sending and receiving money. Nevertheless, It is no news that virtual accounts are steadily becoming more accepted and the trend of traditional bank accounts is slowly reducing. Ultimately, choosing between virtual and physical accounts involves carefully evaluating your business needs.
Changera is a reliable and credible virtual account service that guarantees to provide you with a seamless online banking experience. Think about secure payment solutions that can help your business streamline its payment processing, Changera has got you covered.
Changera allows users to set up virtual accounts in NGN, USD, EUR, and GBP to receive payments from customers all over the world.
What else are you waiting for? Integrate now and start enjoying the benefits. Download the Changera mobile app from the Google Play Store or App Store today.
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