Your bank is meant to be your business' trusted financial partner. Your hard-earned revenue flows through their accounts, and they support you through critical milestones like securing business loans or expanding to new markets.

Because of this, your bank needs to be a great fit for your business. Perhaps you chose your current bank for convenience or inherited them from your business partners. Or maybe you're simply ready for a financial institution better aligned with your evolving needs.

Whatever the reason, if you're considering switching business banks in Alberta, we've got you covered. It requires some planning and dedication, but finding the right banking partner is a crucial investment in your company's future.

What you need in a bank

No two businesses are the same—neither is how they do business banking. When it comes to your company's finances, many factors come into play when choosing the right bank. If you're already established with a bank, you might question if switching is the right move. However, these questions provide the perfect starting point for your decision, and are important to come back to throughout the process.

Start by outlining your non-negotiables: perhaps specialized business accounts, streamlined payment processing options, accounting software compatibility, merchant services integration, competitive interest rates on business loans or access to expert financial advice tailored to your industry.

Maybe you're preparing for rapid growth and need a bank equipped to handle increased transaction volumes. Or you're focusing on optimizing cash flow and seeking a bank with minimal fees and attractive interest rates on business savings accounts.

Beyond the products and services themselves, consider the bank's commitment to supporting small businesses and their understanding of the Alberta business landscape. A strong local presence and dedication to the community is invaluable.

As you evaluate, here are some common features you may look for in a bank: 

• Fees and charges: Are they transparent and reasonable?
• Account types and services: Do they meet your needs for spending, saving, credit cards and investing as a business? Do they cater to your type or size of business?
• Interest rates: Are they competitive for savings and loans?
• Online and mobile banking: Is it user-friendly? Does it include the features you need and easy-to-find support?
• Customer service: Is it responsive, helpful and available when and where you need it?
• Fraud and security: Is the bank proactive in protecting you and your account against fraud? Are your funds and personal, business and client information protected?
• Financial health of the bank: Is it stable and reputable?
• Special features: What is the bank's community presence and business expertise?
• Personalization and flexibility: Can you customize your banking experience? Do you receive proactive advice for your business?
• Ethical and social responsibility: Does the bank align with your values?

Preparing to switch banks

As you get ready to meet with your banker, gather the necessary documents and information to prepare for a smooth transition. This may include:

• Providing vendors with your new account information for direct payments
  • You’ll need to do this within 30-45 days, depending on receivables
• Creating a cutoff date for incoming deposits
• Sending payroll details to inform your payroll company
• Finalizing your new credit card application
  • You’ll need to close off your old cards and open the new cards
• Collecting your credit card direct deposits and debits
• Getting your automatic bill payment and ACH payment details
• Confirming that your accounting software is compatible with the new bank
• Gathering information on any Moneris or cash management solutions and associated fees

Steps to switch banks for business banking 

Now that you have the documents and information you need, follow these steps to make the switch.

1. Apply for the new account. Make sure all relevant parties sign the application if you're in a partnership or corporation.
2. Fund your account. Meet the new bank's minimum deposit requirements.
3. Set up online and mobile banking. Download the bank's app, enable two-factor authentication and set up your login credentials.
4. Transfer business transactions. Update payroll, automatic payments, recurring payments, customer invoices and merchant services processors with the new account details.

The switching process should take anywhere from one to three months. Aim for the minimum timeframe to reduce fees you’re charged at both financial institutions during the transition.

Tips for a smooth business banking switch

• Monitor the transition. Confirm that all funds are depositing and withdrawing as expected.
• Keep your old account open for one to three months. This allows pending payments to clear and prevents overdraft fees.
• Close your old account. Collect any outstanding funds after the account is closed.
• Time the switch after payroll clears. This provides a buffer to resolve any issues before employee paycheque are affected.
• Set up security measures with your new account. Set up Passkey, a digital security measure to keep your account safe.

Switching banks may seem daunting, but it doesn’t have to be. With the right advice, thorough preparation and careful monitoring, you can confidently switch your small business banking accounts while minimizing disruptions to your operations.