Only 23 per cent of small businesses and the self-employed currently have their main account with a digital bank, although the remaining 77 per cent that use traditional banks would consider switching to a digital one.
This is according to a survey from software search site Capterra, which surveyed over 600 people either employed in a small to medium-sized enterprise (one to 250 employees) or self-employed, finding that they mentioned trust (68 per cent) and recommendations (21 per cent) as the most important decision-making factors.
When asked about the main benefits of a digital bank, most respondents cited ease of use, along with flexibility and cost. While some preferred face-to-face communication with their bank representatives, others considered the lack needing to booking an appointment and travelling to a branch as an advantage.
Although the majority (57 per cent) of small business owners and freelancers were using a mobile app to access their business bank account, 82 per cent of respondents still thought it was important for a bank to have a branch.
Sonia Navarrete, content analyst at Capterra, commented: “Sole traders and micro businesses are still choosing traditional banking for their primary business account, however there is a growing trend of smaller businesses adopting digital banks as they provide a more agile way for trade businesses to do business.
“The flexibility and ease of use associated with this type of banking has proved to be the most significant advantage for the fast pacing industries and busy sole-traders.”
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