Startup bank shopping

By Jurij Skornik, business and product development at iMoney Singapore.

Here at iMoney.sg we offer free comparison of financial products available in Singapore. Being a startup that has already grown out of its beginning period, we felt like sharing our experiences and advice on choosing the right bank for your newly formed company.

There are many things to consider when registering a new firm. Choosing a bank that will fit with your company’s needs, culture and future aspirations is definitely one of the more important ones.

While the bank where you hold personal accounts excellent in that department, this might not hold true for business banking, so you should not rely on that consideration alone.

Where to Start?

The single most important criterion when bank-shopping are needs of the company. So before you even start looking for a bank, ask yourself what your company’s needs actually are – it’s rather difficult to find a match if you don’t know what you are looking for!

You aren’t just selecting a bank for the present, but also for the future. Startups are usually very dynamic and can grow very quickly, developing banking needs that didn’t exist a couple of months back. Don’t be caught moving from bank to bank looking like you’re chasing your own tail.

For example, if your only need right now is online banking services, consider whether the company might need a more personal approach that includes a personal financial advisor in the future.

Fees Galore

Banks are institutions that make money in different ways. That includes charging fees to their beloved customers – businesses and individuals alike. While banking regulations provide a lot of restrictions and limitations, making different banks look the same, the fees they charge can sometimes differ by a substantial margin.

Pay attention to even the smallest differences in fees as the total amount can really pile up, and you don’t want to be spending scarce resources on deposit fees and other ridiculous charges banks come up with. Additionally, always look at the fine print unless you want to be unpleasantly surprised by some hidden fee your friendly banker forgot to tell you about.

Getting Started

So, how to get started on this rather time-consuming task? The easiest way will be to compile a list of banks and compare their features and fees head-to-head. See which banks specialize in what you need most and narrow down your list. The features you will want to consider include international requirements (whether you need to be physically present to open an account, for example), wire transfers, payroll services, card services, online/offline banking, business loans and provision of financial information, just to name a few.