Benefits of ebanking
There are many benefits associated with online banking, not least convenience. Managers can perform banking procedures directly from their desktop, in real time. Furthermore, the introduction of wireless internet access means that important banking matters need not wait until you are sitting at your desk; banking can now be done on the move.
Online banking can also help a company to cut the costs associated with paper-based payment functions, such as cheques. According to an estimate by Bank of Ireland, electronic transactions are 76 percent cheaper than cheques. Little wonder then that a Halifax survey indicated that the cheque could disappear altogether within the next 20 years.
As well as cost savings, banking online can help companies to reduce the amount of time spent on banking processes by cutting the amount of paperwork required. In addition, all ebanking processes are done in real time, so companies can immediately view the transactions made and the effect they have on their bank balance. It also means that finance staff need not physically visit their local bank in order to conduct transactions.
Hylube goes electronic
It's apparent that the advantages of online banking are numerous. Hylube Sales and Services, a Meath-based manufacturer of safety equipment, discovered that conducting its banking via the internet helped it to cut costs, save time and increase efficiency.
As more and more of its customers began making electronic payments to Hylube, the firm realised the benefits of making the switch to internet banking itself, according to Modwenna Byrne, office manager at Hylube. "It became clear to us that banking online could help us to make our payments more efficiently and cut down on the amount of cheques we were writing," she says.
The company now pays all of its employees and the bulk of its creditors electronically and is aiming to enable epayments for all of its customers by the end of the year. Conducting its banking online has helped the small firm to cut down on the amount of time it spends on the payments process and on paperwork, as well as eliminating the costs associated with cheque payments.
"Ebanking is also great for our employees and suppliers, who now get paid immediately and don't have to lodge a cheque and wait for it to clear," says Byrne. "You can also see everything going in and out of your account in real time, which is very convenient."
Byrne said she would advise any small business to start banking online. "We've been banking online now since the start of the year, and we just couldn't go back to the way we were doing things before," she adds.
How secure is it?
Despite all the benefits of ebanking, some firms worry about the security aspect of conducting financial transactions over the internet. Although a genuine worry, banks are quick to highlight the security measures they have in place, such as public key infrastructure and 128-bit encryption, which are the norm for all Irish banks with online offerings.
"Banks are very aware of the potential risks and constantly monitor their services," according to Brian Howley, sales and marketing manager for payment and eservices at Bank of Ireland. Ulster Bank concurs with Bank of Ireland's stance on security, saying that banks are extremely vigilant in the area of security.
A number of phishing attacks against banking customers have made the headlines in recent months. Phishing takes advantage of human nature and as such cannot be guarded against with sophisticated security measures, according to Howley, who explained that banks would never ask customers for passwords via email.
Although companies are always going to have some security concerns, vigilance and caution can help to avoid potential security incidents, leaving your company free to fully enjoy the benefits of banking online.