Which bank should you open a business banking account with?
You may have just started or are thinking about starting a business in 2019.
At the top of your head, you are weighing the pros and cons of various aspects to your business including the relatively simple task of opening a bank account.
We have compiled a useful guide and categorized these rankings based on factors that would influence your decision.
1. If your decision is based on the complexity of the application process.
The table above illustrates that DBS, OCBC & UOB all provides an option for an online application. UOB still prefers a physical meetup for their larger Current Accounts while OCBC does not provide crystal clear clarity about the eligibility of their online application.
If you are looking for a seamless application process and are eligible for it – We would say – DBS. But if you prefer talking to a representative? You have OCBC or UOB.
Criteria 1 Winner: DBS
2. If your decision is based on the types of account available.
OCBC stands out from the other 2 banks, as they have account types tailored for businesses of in different stages. The “Business Growth” account caters to start-ups, “Business Entrepreneur” for growing businesses, and “Business Entrepreneur Plus” for larger companies.
Without going into details about the benefits of each account, OCBC scores by simply providing more options for SMEs.
Criteria 2 Winner: OCBC
*Multi-currency bank accounts and UOB’s BizTransact have been removed from the scope as it covers a significantly different context and purpose.
3. If your decision is based on the requirements of the account.
As you can see, there are no minimum balance requirement for DBS accounts. Minimum initial deposit varies across the account types, with DBS and UOB requiring the lowest deposit amount.
For us, we believe that SMEs will find it very difficult and stressful to try maintaining the minimum balance especially if they are a cash-heavy business. Therefore DBS wins hands down.
Criteria 3 Winner: DBS
4. If your decision is based on the cost of the account.
There are no clear winners in this case if you were to analyse the differences. Any choice will have to depend on the preferences of the business owner.
Criteria 4 Winner: None
5. If your decision is based on the benefits of the account.
We believe that the benefits provided by DBS are slightly more tangible and useful for an SME.
Criteria 5 Winner: DBS
Wait, so which bank do I choose?
As much as we would like to be quick on our feet to recommend only the best solution, our findings have shown that there is no clear winner after all. Each account stands out in different areas.
Having said that, we feel that DBS provides the most clarity on their websites even though their Business Banking account might not necessarily better.
We want to emphasize that at the end of the day, the accounts are structured in a way to occupy different segments of the market and to cater to each SME’s personal preferences.
Disclaimer: This article is based on information found exclusively on their respective websites. We believe our information is representative. However if there are any errors in our reporting, please contact email@example.com for rectification.
About The Author
J. Kang is the foodie who spends most out of her undergraduate time scouting for food around Singapore Management University. The Corporate Communications major enjoys communicating with guests while she is working behind the locally-inspired bar(s), occasionally.