How to switch business bank accounts: a guide for companies

Changes are a part of life. Some are positive, some are negative, and some are just plain necessary. Even your financial behavior, choices, and operations are prone to changes. For instance, some companies may want to find an alternative to their bank account.

Thus, today, Genome’s team will explain how to change a business bank account if you have found a better option for your company. We will also list some of the main features of a modern, reliable business account.  

The reasons to switch bank accounts

When you stumble upon this article, you may think, “Why would I need a change of a business bank account?”. Well, there might be a couple of reasons:

• You may consider a switch if the services of your current financial institution are not on par with your demands. Unfortunately, it happens sometimes – you may notice that your bank works slower or lacks some essential services. Moreover, you can even face disruptions while performing some financial operations, which may waste the company’s time and lead to financial losses. That’s when some will consider switching business bank accounts. 
• Your company has overgrown your bank. Some businesses naturally switch financial institutions when their company expands. For instance, an e-commerce startup opened a small business bank account in 2011 with a financial provider that offers perks for startups. However, by 2019, changes occurred: the company grew significantly, tapping into many markets. Its profits also increased, meaning its financial provider for startups was no longer suitable. Thus, it needs to switch banks.  
• The bank has significantly increased fees for its services. This one’s self-explanatory – you want to avoid overpaying for banking features you can find at another bank for a reasonable price.
• You found a better option. It’s simple: many companies switch financial institutions just because there is a plethora of modern, tech-savvy, and diverse digital banks, online wallets, and so on.
• The external circumstances. Unfortunately, sometimes, a company has no choice but to switch its financial institution. For instance, if the bank ceases to exist or faces bankruptcy. And, if there’s been a data breach in your financial institution, it’s definitely time to consider joining another bank. 

How to switch a business bank account to another one? 

Now that we covered reasons for changing financial institutions let’s list some of the things a company needs to consider when selecting an account at another bank. 

1.Your needs come first. Don’t rush into switching accounts – you must first assess what financial services are primer for your business. For instance, the kind of money transfer options you need, the availability of corporate cards, etc. Also, plan ahead: analyze your long-term plans regarding business expansion and income growth. If you own an e-commerce company, ensure that the bank you switch to also offers merchant accounts. Read more: The 5 features of a bank account that define a great online banking experience. 

2. Consider your options before you switch your current account. Once you have determined which services you need, it’s time to review the selection of financial institutions on the market. You can read more about their types here. Before any significant changes, you need to pay attention to the following:

• The regions and markets covered by the financial provider;
• If the financial provider works with companies from your industry and supports low-risk/high-risk companies;
• The legitimacy of a financial institution – it must comply with all the major regulations, be licensed and regulated;
• The terms and conditions – ensure that you are eligible for a business account at a bank you are considering joining;
• The services and features this financial institution provides;
• The fees for using the said services.

3. Don’t switch to a new bank account before ending all your business with an old one. You need to analyze all your spending and put on hold any recurring payments you might have. Also, once you have switched to a new bank account, don’t forget to notify your business partners that your payment details for money transferring have changed;

4. Start the onboarding procedure inside the financial institution you have chosen. Ensure that you have all the documents necessary to start a business bank account;

5. When your business account at another bank is up and running, you can close your old corporate account.  

Want to switch your business account? Consider Genome

Why join another bank and waste time in long lines when you can start a business wallet online – inside Genome. Genome is a Lithuania-based Electronic Money Institution that offers business wallets for a wide variety of companies. All our services are secure; we comply with all major regulations.  

Inside our business wallet, you can start up to 5 business accounts in each currency: USD, EUR, and GBP. You can safely give access to your wallet to other staff members, so you can manage your financial operations.  

You can easily transfer money via SEPA and make mass payments. Corporate cards are also available for order: you can get a virtual Visa card online or get your physical card delivered. 

And, of course, Genome’s support team is always eager to answer your questions. 

FAQ

Is it hard to switch business bank accounts?

Generally, it is not hard to switch your current business bank account to another one. But, the process requires preparations: a company needs to know what services it needs and compare the best options available on the market. 

Can a business have 2 different bank accounts?

Yes, it is possible to have more than one business account at your bank. Many financial institutions offer different options. For instance, you can have more than two business accounts inside the Genome wallet. These are multi-currency accounts, available in euros, US dollars, and British pounds – up to 5 accounts per currency. 

Can I use an old business bank account for a new business?

No, you can’t do so. You need to start a new account. 

Advantages of switching business bank accounts

When you switch bank accounts, you are likely to find new financial features and services. You can also switch to a financial institution that offers lower fees and a faster, more tech-savvy user experience.