What to look for when choosing a bank
Banks lubricate the economy. The entrepreneurial community can’t do without them as they actually provide the funds the entrepreneur needs to fill any funding gap that may hinder projects, investments or expansion. Thus, choosing a bank shouldn’t be something an entrepreneur does haphazardly or emotionally. Needs have to be clarified and a bank or banks that can meet such needs in a more efficient and effective way should be considered.
Generally, an entrepreneur should look out for five basic features in a bank.
Does the bank’s financing portfolio cover the business focus of the entrepreneur?
Some banks may be strategically averse to financing the activities of some sectors. So if you are dealing with a bank that has no business plan of funding or support the business you do then choosing such a bank would have been an error.
Does the bank have efficient, timely and responsive customer interface platforms?
Process and technology. It’s a major challenge when your bank does not respond to your needs properly and on time. Access to your funds, multiple channels of interface with your bank and responsive account officers that go beyond the ordinary to pursue your requests are key characteristics one must search out for. It could be frustrating when your bank is clumsy and tardy.
Do not pick a bank that its charges would be a financial burden to your business.
What that implies is that you would have to compare notes on charges by banks, both hidden and open charges before you make choices. Banking is becoming fiercely competitive and the banks are waiving off charges and providing incentives for customers especially business clientele.
Pick a bank or bank branch that its location is proximal to your business location. There are times you really need to have a personal interface with your bank. Sometimes moving across a long distance to do that may be a challenge especially in a high traffic environment.
Pick a bank that you are sure implements proper corporate governance standards and has dependable fraud protection systems. You must always be re-assured that dealing with your bank does not expose your funds to fraud and that your bank’s practices and processes ensure safety of your funds.
IKENNA OBI