Reevaluating any longstanding relationship — either business or personal — can be hard, especially when you think it might be time to make a change. Adding finances to the mix further complicates the dilemma. But in business, doing right by your organization and customers is a nonnegotiable, and you deserve the highest level of service and support to ensure your business thrives.
How do you know when it’s time to switch to a different business bank account? Let’s look at three of the most common reasons business owners cite for changing banks and what to do next.
You’ve likely heard “customer is king” or “the customer is always right” casually thrown around, but the reality is that many businesses simply aren’t attentive to their customers’ evolving needs. This is particularly true for businesses experiencing significant growth or unexpected pressures. According to the MIT Sloan Management Review, there has been a significant uptick of customers choosing to work with or purchase from companies whose socially conscious values or brand purpose resonates on a personal level. As you consider what you’d like in and from a new bank, don’t underestimate the value of a partner taking the time to understand you and your unique needs, now and well into the future.
Your company’s current financial support needs may look differently than they did when you chose your current bank. Often a business’s growth outpaces its bank’s offerings, such as advanced technologies or expansive funding options, making a change necessary to unlock the next level of growth for an organization. Or maybe you’d like to consolidate your banking into a single institution and are evaluating one that can truly do it all. Whatever the need, look for a bank whose products and services are robust, secure and innovative, allowing your business to be effective, safe and relevant.
According to a report published in March 2023, as many as 1 in 10 business owners switched banks from 2019-2022, citing increasing fees as one of the top three reasons for the change. While it may be common for some bank products and services to have monthly or annual fees associated, look for transparency from your bank to explain each one up front. If any of the fees, like the maximum number of monthly transactions, aren’t negotiable, you want to make sure those are a realistic operating cost.
Now that you’re considering changing your business bank account and have a new banking partner like U.S. Bank in mind, here are five simple steps to make changing banks seamless.
Stop using your old business checking account. Keep the account open until all outstanding checks have cleared and your automatic payments and transactions have been switched over to your new account.
Transfer your automatic transactions to your new bank. Contact your vendors and merchants who may send automatic payments to your old business bank account and notify them of the new routing and account number.
Switch your automatic payments. Payments such as dues, utility bills and vendor payments that are automatically debited from your account will need to be notified of the new account. Have your new checking account number and routing transit number handy when you call to switch.
Close your old business account. Once all your checks have cleared and your automatic payments and direct deposits are successfully being deducted or credited from your new account, close your old business bank account. If you have old checks, bring them to one of your new bank’s locations and they can securely shred or destroy the old inventory and order new deposit materials.
Choosing to change your business’s bank account can feel daunting, but when you partner with an institution who values you as a customer, offers flexible tools and provides transparency around fees and limitations, the transition to a new business bank that meets your needs will be well worth the extra effort.
Ready to put your plan into action? Explore our banking account options to get the business bank account change started.