In the course of running their businesses, freelancers have to perform different financial transactions, and most importantly they have to get paid.
A lot could depend on the channel through which you perform these transactions and how you utilise tools available to you to manage key aspects of your finances.
Digital banking is there to the rescue.
There are a variety of modern banks, some of them fully digital, designed specifically to cater to freelancers or part-time workers. With an endless supply of such options. Freelancers are often faced with the tough task of deciding what platform to bank with.
In this article, we will explore the top banks freelancers use in their day-to-day activities. But before then, let's look at the importance of choosing the right digital bank.
When choosing a digital bank for your freelance business, it's important to consider factors such as fees, features, and customer support. You should also think about the specific needs of your business, such as whether you require multi-currency accounts or invoicing tools, and choose a digital bank that offers the features that are most important to you and your freelance business.
With the right bank, you can save on costs, run your business more productively and keep your finances in check.
Below are important factors to consider before you select a bank for your freelancing business:
That said, what are the best banking options for self-employed professionals like freelancers?
This is one of the most widely used digital banking options by freelancers. Though not an actual bank, Chime enables you to set up accounts to send and receive money with great ease.
Some of the top reasons for using Chime include:
For freelancers who work internationally, N26 is a top UK-based digital bank to consider. With a presence in over 25 countries, N26 offers free international ATM withdrawals, no foreign transaction fees, and competitive exchange rates. Their online and mobile banking services are also top-notch, with features like real-time notifications and budget tracking.
Other pros include:
You can start with a free basic account or premium accounts with additional features such as travel insurance and higher ATM withdrawal limits.
Revolut is a digital banking app that offers a range of services that make banking easy for freelancers. One of the unique features of Revolut is that it allows you to hold and exchange over 30 currencies at the interbank exchange rate. The app is designed to help businesses with easy money management, travel planning and investments.
The main features include:
Wise, formerly known as Transferwise, is an incredibly popular digital banking platform, in use in over 175 countries. With support for over 50 currencies, it specializes in low-cost international transfers, offering multi-currency accounts, low fees, and real exchange rates, this means you'll get a better exchange rate than you would from a traditional bank.
Wise also offers a debit card and business accounts with invoicing features like other banking tools. Making it one of the best bank accounts for freelancers.
The platform which Supports over 300,000 businesses currently is regulated by the bank of Belgium and aims to help people live and work anywhere seamlessly.
Monzo is a digital bank that lets you easily create and use a free UK bank account. With millions of users currently, Monzo enables you to make transactions globally with a MasterCard.
Another interesting feature of Monzo is that it allows you to set up "Pots" - separate savings accounts that you can set aside money for specific goals in.
Other features include:
With Starling bank, you can create a UK bank account in minutes. The bank which is regulated by FSCS is 100% digital with human-powered customer service available 24/7.
Starling bank offers similar features that other banking options have, e.g, fee-free spending abroad, free ATM withdrawals, and a range of business banking services, including invoicing and tax tools.
One of the standout features of Starling bank is its "Goals" feature, which allows you to set savings goals and track your progress toward them.
NorthOne is one option to consider if finance management is of concern to you. The financial technology platform is built specifically for freelancers and small businesses, and it eliminates the ceremonies of financial administration by including features that make banking an easy process.
Some of them include: easy to set up accounts, budgeting tools, ATM access, etc.
To round off our list is one of the most popular cross-border digital banking options out there. Just like Wise, Payoneer has a rich capacity for currency exchange. Payoneer is linked to a lot of freelance platforms, e.g Upwork and Fiverr, as well as popular e-commerce platforms. This makes it a widely accepted solution for freelancers.
Notable features include:
Freelancers need financial platforms that can help them be more productive and financially prudent. Standing in queues at the bank is definitely not encouraging. And since most freelancers work remotely, payment systems that are digital and fast are more useful.
Additionally, several of the apps that make digital banking for small businesses possible have built-in features such as invoice generators, budgeting tools, etc, that can help you do more on a single platform.
