5 Ways Businesses Benefit from Online Banking

Online banking isn't just for debit card accounts -- businesses can benefit from it, too.
Online banking isn't just for debit card accounts -- businesses can benefit from it, too.
Jamie Grill/Photographer's Choice/Getty Images

Anything that proposes to make life easier for a small business owner in a difficult economy is certainly worth consideration. Online banking has exploded in the past decade, and more and more businesses are recognizing its advantages over traditional banking.

Of course, if you've been managing your business and personal finances a certain way for most of your life, you might be hesitant to make the leap -- especially with something as important as the way you deal with your bank. And many people are concerned about security. Web scamming, viruses and the safety of sensitive information across networks are all legitimate concerns.

However, if you use trusted sites and are diligent about securing your Internet network (keeping your passwords secret, updating security and anti-virus software, and so on), you'll minimize threats [source: FDIC]. In fact, some argue that online banking can be safer than traditional banking, because your personal information is encrypted rather than on paper [source: ConsumerReports]. Online banking also allows you to monitor your account frequently so you can spot unusual activity quickly.

While online banking is most popular with younger generations, even older ones are starting to prefer it. According to the American Bankers Association, in 2011, 57 percent of Americans age 55 and older prefer to do their banking online, as opposed to only 20 percent who preferred it in 2010 [source: ABA]. If you've yet to make the leap, consider some of the following advantages over the next five pages.