Does a business need a bank?
Banking is built on storing and lending money.
Moving money is a different business.
Modern banking has been built on the premise of lending depositor’s funds. This means that deposits (mainly) stay on deposit. The bank lends that money out. So far so good. The modern economy is built around the rapid and efficient movement of funds, and this does not work well with the need for long term deposits.
Banking Overhead
Banks created their operations around a business model that has nothing to do with day-to-day business operations.
Think about it. A Bank's business model is essentially:
Store money, Lend money. There's no lend if there's no store.
And Store has nothing to do with day-to-day operations. Store needs long term conditions. Day to day business operations - especially fast-moving electronic operations - have been bolted on as an afterthought and are not part of the fundamental banking model. This results in banking overhead. Banking overhead is a drain on cash, and an impediment to growth.
But what is it exactly, and how does it impact financial operations?
The systems and services offered to businesses are based largely on manual processes. Businesses execute a number of processes for managing day to day operations (like logging in to internet banking, authorising transactions, viewing transaction statements etc). These processes are almost always manual, and this is the root cause of banking overhead. These small manual processes spawn a myriad of other manual processes. Like reconciliation, payments, refunds etc. Companies deal with banking overhead by applying “operational processes”. Many companies might not even recognise that there is a problem. They have ‘solved’ the issue with operations. But these operational processes impact cashflow and impede growth.
Eliminating banking overhead.
NoFrixion is not a bank. It is an Electronic Money Institution, designed to separate financial operations from banking. Our philosophy is built on the idea that businesses should own their own funds and manage the movement of those funds. This was the idea behind our famous statement: "Be your own bank".
We believe that a business should be in control of how and when its funds move. Over the last few years, we have enabled businesses of all sizes to do exactly that.
By replacing banking overhead with efficient money movement, businesses can build their financial operations to precisely match their requirements. Financial transformation often starts with questions like these:
Do you have real-time control over your financial transactions?
How integrated are your financial operations with your business systems?
Are you still using internet banking?
At NoFrixion we provide transformative solutions to real world problems.
You don’t even need to leave your bank.
You may just forget you needed one.
