General contractors have a tough job since they have to find and provide all equipment and material necessary to accomplish their tasks. Their job requires time, money, and energy, which is why they don't want to spend these things waiting at banks. 

That is why they are switching to digital banking for contractors. Digital banking is a whole new way for businesses in the construction industry to utilize the services bank offers. So, how can general contractors use it to their advantage? 

We will discuss some benefits of incorporating it into your business. But before that, let's understand what digital banking entails and how general contractors can use it to help their business.

What is Digital Banking? 

Usually, people had to head to the nearest branch to discuss anything regarding their account or take any other banking service. Now people can avail all of these things online via digital banking. It allows consumers to access all the services banks offer through their mobile phones within a few minutes. 

Time is the most vital resource for general contractors. Therefore, they prefer using digital banking to save time as it helps them receive payments, transfer money, and have all the other services at their fingertips. They can access their digital banking accounts through their mobile app or PCs. 

The construction industry is a vital part of the US economy. Ways like digital banking streamline business operations, enabling general contractors to focus on other core aspects of their business. 

Key Characteristics of Digital Banking

Digital banking comes with its own set of features and characteristics which distinguish it from traditional banking. Below is the set of key features you can get from it. 

  • Allows you to access the services of digital banking anytime from anywhere you want 
  • General contractors can access digital banking services through their phone, tablet, or through any other devices available at their site 
  • It gives DIY banking services to many customers
  • It offers the same services that you can get by visiting a physical branch
  • Online banking is much safer and more secure 
  • You can get much more customized services through it, which can enhance the overall customer experience of general contractors

Digital Banking for Contractors; How Does it Work? 

Understanding and using digital banking for general contractors is no rocket science. They can get a grasp of digital banking in no time and use it to reap the benefits that it offers. All you need is secured credentials that your digital banking service provider will give you. 

You can enter those credentials in your mobile or internet banking and use the services at anytime from anywhere. To make it easy for you, here is the step-by-step process for opening and using digital banking services. 

Step 1 - Initiating the Request 

First thing first, you will have to submit a request to open a digital banking account through which you can enjoy the services. You can either choose a bank or an SMB to initiate your request for the sign-up of general contractors. The request is regarding the credentials to help you access digital banking. 

Step 2 - Getting Valid Credentials 

After the request is processed, the next step is about getting the valid credential that the digital banking system generates. A vital point to keep in mind is that some digital banking systems require you to validate the KYC (Know Your Customer or Know Your Client in a few instances). 

KYC ensures the complete safety and security of your personal banking information and data. It ensures you don't face any difficulties when logging in to the digital banking system as well. 

The general contractors will receive their credentials through email or SMS. It is imperative to remember the login id and password by heart and never to share it with anyone else. 

Step 3 - Use the Digital Banking Services 

After you get the login credentials, you can then log in to the digital banking portal through your app or browser on your computer. You can now enjoy the same services you get from traditional banking at your convenience.

Services That Digital Banking Offers to the General Contractors 

Digital banking provides a plethora of services useful for businesses in many ways. It helps them simplify the payment process for their customers and many other things. But which can be beneficial for general contractors in particular? Below is the list of a few services general contractors can use. 

  • Online Banking: Online banking is the availability of banking services through a mobile phone app or a website
  • Monitoring Transactions: You can monitor and keep track of the transactions taking place through your transactions. It can help you identify any suspicious activity happening. 
  • Paying Bills: The feature to pay the bills automatically can be helpful for general contractors since they don't have to go and stand in line at the bank. 
  • Transferring Funds: General contractors can directly send their payments to anyone they want. It saves them from giving out checks to everyone else. 
  • Accessing Bank Statements: Using digital banking services, general contractors can easily access their bank statements and find the expenses they have incurred throughout a specific period. 
  • Get Different Financing Options: You can apply for various financing options, such as credit cards, personal loans, and other things through digital banking.
  • Managing Check Payments: Finding out about the deposits or the check going through the clearing process is also possible through digital banking. 

Bottom line 

Digital banking is reshaping the approach businesses in different industries have for banking. It offers them a vast number of features, making it easy for general contractors to focus on their work while getting the same services. 

While the idea of digital banking replacing conventional banking seems too early, we can expect to see it happen soon. So, now is the chance for your general contractors to utilize it to their advantage. 

And if you are not sure about which digital banking service provider to choose, let VERGO help you. It is an all-in-solution that is helpful for many businesses in the general contractor industry. So, it's invoice management, a virtual project app, and other exceptional features to run your business operations.