In the era of digital services, neobanks play a key role as the new strategic partners for businesses. Both emerging entrepreneurs and the most experienced business people can benefit from partnering with fintech companies.
Multiple industries, especially the financial sector, have evolved to offer better, more improved products. In parallel with technological development, customers are changing their behavior, becoming increasingly demanding. In this paradigm, entrepreneurs stand out as the driving force of the economy. They also play an important role in the continual evolution of the financial industry – because they understand better than anyone that "time is money". Entrepreneurs are constantly looking for ways to make their businesses more efficient.
The disadvantage of traditional banking is the strength of the neobanks
In the search for the most optimal choice, entrepreneurs are currently faced with a wide range of possibilities in the financial market. Traditional banks for a long time were the obvious and perhaps the only option. However, given the growing competition in the banking sector, they are not always the preferred option for businesses today. To begin with, these banks may require potential clients to come to their offices in person for even the most basic procedures, such as opening an account. Entrepreneurs must provide a lot of documents about the origin of their funds, their partners, and possibly even information about their clients! More than a procedure for opening a corporate account, it looks like an interrogation. All this time wasted, energy, and money spent will never see a return.
While these procedures are required by law, traditional banks have not done everything possible to make themselves more efficient. That's why a neobank for entrepreneurs can be a step ahead in this regard.
Why do entrepreneurs choose our online banking for their business?
At Blackcatcard, as a neobank especially designed for users in the territory of the European Union and subject to the respective European regulations, we make sure that our corporate clients receive tailored-made, state-of-the-art solutions for their business needs. With our online banking for businesses, they have the possibility to make efficient use of their resources. First of all, opening a corporate account with us means saving valuable time. All our procedures can be done 100% online from start to finish, i.e. our corporate clients do not waste time making appointments with bank officials and going to an office. They can do it all directly from the comfort of their own home or office.
Secondly, we have developed an intuitive app with all the functions one may need. On the Blackcatcard app, customers will find everything they need to manage their corporate account funds in one place.
This way our corporate clients can easily manage all the payments they need to make in relation to their business 24/7. With a corporate account in our neobank, it is very easy for our clients to pay their suppliers and employees, who may actually receive their salary through corporate cards issued to them by their employer.
On the other hand, in order to offer an efficient product, neobanks also reduce operating costs, which are ultimately not passed on to the client. This is part of the essence of Blackcatcard, therefore, by eliminating all the bureaucracy and paperwork of traditional banks, we can offer more competitive rates from the very opening of the corporate account until its closing. This is undoubtedly a benefit for companies registered in the EU territory, which can enjoy special pricing advantages. However, our very essence as a 100% virtual neobank for business is to extend the offer and take online banking beyond the EU borders. Any company, regardless of the country of registeration, can open its corporate account with Blackcatcard. Our rates are some of the lowest on the market, which is a very important opportunity for businesses that have customers and/or suppliers in other countries.
It is worth noting that we were born as a fintech company, and we are also designed for fintech companies. That is why they can also access our corporate accounts without assuming unfair additional costs. Moreover, thanks to our zero-paperwork policy, we are fulfilling a fundamental commitment to the environment.
Complying with European regulations does not limit us, but strengthens confidence in us
It should be noted that we, as a neobank under European Union regulation, take all necessary measures to ensure the security of funds deposited in all our clients' accounts. Within the regulatory framework, we do not have the right to use the money of our depositors. In other words, the funds deposited by our clients in their respective Blackcatcard accounts can be managed only by themselves. Furthermore, we are required to back up all of our clients' money with our own funds. In this regard, we must report daily to the regulatory bodies on our balance sheets, in order to corroborate that our own funds are equal to those deposited by our clients in their respective Blackcatcard accounts. In this way our users can be confident that their money will always be backed by our real assets.
And although it seems obvious, it is not so obvious if we take into account what happens in the case of traditional banks. Banks, also known as Credit Institutions or Financial Intermediation Institutions, can dispose of depositors' funds autonomously. Banks usually reinvest this money to buy shares or distribute loans, with the objective of obtaining profits mainly for themselves, leaving a minimum percentage for their clients. Certainly, if the bank makes a bad investment and fails, its clients, particularly corporate ones, may lose their own money. As an example we have the most recent case of the Collapse of Silicon Valley Bank, which led many start-ups and large companies in the Fintech industry to lose their funds.
In the case of Europe, EU directives stipulate that, in order to reduce the negative impact of a bank failure, all Member States must have deposit guarantee schemes of 100,000 Euros to protect depositors' assets. However, if depositors have more than this amount of money in a bank account, in case of bank failure they would receive only up to 100,000 Euros as compensation and may never receive the rest if the bank does not pay its other liabilities first.
Therefore our clients in many cases prefer to open an account at Blakcatcard. They can be sure their funds can only be used by themselves. Furthermore, their money is safe - not only 100 000 Euros covered by European regulations, but any deposited amount.
Blackcatcard is the partner that entrepreneurs need
One of the principles of our Fintech ecosystem is the technological development to offer the best possible asset protection. That is why our hard work at Blackcatcard has allowed us to achieve bank level security with an important additional feature - we securely store our clients’ money, but we do not use it or reinvest it in any way, only our clients are allowed to manage it! This way we give them full control over their assets without putting them at risk of third-party disposition. For this reason both growing start-ups and more developed companies are confident that their resources are safe and will not be put at risk by Blackcatcard.
Taking into account all these important features and significant cost reduction, it is possible to affirm that online banking does help companies to maximize their resources.
Please keep in mind that this information only applies to neobanks regulated by European laws and standards.
Therefore, we can conclude without a doubt that we, the neobanks, are an important alternative to traditional banks and we can become the strategic national and international partner for any type of business.
Can I use online banking for business?
Of course, online banking, such as Blackcatcard, helps you manage your business payments to employees and suppliers, among others, and is available at any time of the year without unfair costs.
Are online banks good for small business?
Yes, online banks, also known as neobanks, allow access to secure financial services for more competitive rates, which is ideal for small businesses or new and growing start-ups.
Is it safe to keep money in a corporate account opened in a neobank?
Yes, absolutely. In a neobank like Blackcatcard we safely store your money, but we don't manage it, only you have full control and can decide what to do with it.
What is the difference between neobanks and traditional banks?
The main difference is the mode of operation. Neobanks offer all their financial services 100% online, while traditional banks operate through physical branches, which in many cases require their clients to be present to access these services. By their nature and form of operation, traditional banks incur additional costs that are ultimately borne by the client; while neobanks can eliminate these costs, offering high quality products for lower prices. On the other hand, neobanks, which are essentially fintech, incorporate in their operation the highest technological developments that allow them to simplify all processes and reduce to the maximum the time required to access any type of financial service.