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New Technologies Will Make Elevator Breakdowns a Thing of the Past



Augustin Celier

We often forget that elevators are the most used transportation and, statistically, one of the safest. Therefore, the global elevator market is a lucrative niche worth more than $90 billion and yields massive cash flows. Yet, the end customers still experience an average of five failures a year despite frequent service visits. So let’s explore how and why a technological shift in the elevator industry could eventually prevent breakdowns.

The elevator maintenance market is a giant — with feet of clay.

A well-off group of manufacturers (including Otis, Schindler, Thyssen, and Kone, also known as OEMs) dominate the industry. They make 75% of their profits from maintenance services. Many small and medium-sized maintenance companies (also known as independent service providers or ISPs) share the rest of the market. These companies operate on a local or national scale.

A model based on regulations

How do all of the OEMs and ISPs operate? During the first part of the previous century, elevator maintenance contracts became a widespread model for maintaining elevators under constant terms. Elevator maintenance regulations are similar across most countries. They are based on the following factors:

  • maintenance contracts with an entitled company are mandatory,
  • they should provide for a minimum of 1 to 12 maintenance visits per year,
  • third-party inspections are compulsory on a yearly or multi-year basis.

These regulations shaped the business models of the leading OEMs.

They rely on a fixed-term maintenance contract providing those mandatory visits and emergency interventions in case of breakdowns. They also sell additional services such as reparations, spare parts changing, and specific breakdown repair, on top of the initial contract.

All in all, the end customers (property owners or managers) purchase means (visits and breakdown response) and not results (guarantee that the elevator works). 

When many industries and services have undergone a digital transformation, the elevator industry has yet to take the plunge into technology.

Many manufacturers still rely on breakdowns to profit, as they can charge expensive repairs. However, recent years have seen an unprecedented change in this OEM-dominated elevator sector. Indeed, independent service providers are slowly eroding the maintenance portfolio of the sector’s majors. How? By providing local support with a more personal touch.

Several models clash

The elevator IoT sector is in full development: it is expected to haul in revenue worth $56 billion by 2026, with a CAGR of approximately 15% for 2020-2026. However, it may at first appear challenging to grasp: there are many stakeholders, and technologies, in a market that can be hard to navigate.

All the major manufacturers have long deployed connected solutions on their machines. Yet, none of them has pushed the concept of predictive maintenance to its fullest. So, how are new technologies taking over, and what exactly is the IoT in the field of elevators?  

The OEM’s propositions

Many solutions can be found on the market using different IoT technologies. The leaders of the industry have already deployed their own industrial IoT for predictive maintenance :

Let’s start with OTIS, the world’s leading manufacturer of elevators and escalators. OTIS took advantage of the IoT with the Otis ONE™ solution. 

Smart sensors positioned on the elevators automatically collect the data. The data is interpreted in the cloud via extensive data analysis, which produces predictive algorithms. Equipment health, service calls, and account updates are organized in a dashboard application that assesses the elevator’s health and makes predictive maintenance recommendations.

This system connects via an API to other intelligent building systems, thus providing real added value to fleet managers and users.

Schindler’s IoT solution is also based on sensors.

Since 2018, Schindler has equipped all of its elevators with a connected box called the Ahead Cube, which makes it possible to anticipate malfunctions by relaying all data relating to the elevator. As a result, the customer has a personal online space dedicated to the complete supervision of their equipment in real-time. They receive notification of technical events (intervention, maintenance visit). They also can access a fleet performance summary and request an intervention via an application.

Kone, a Finnish leading elevator company, has partnered with IBM. They connected a box to the top of the unit, linked to the sensors. It transmits the data to IBM’s Watson analysis and sends recommendations or alerts to prevent failures.

Thus, all the significant leaders in the sector have already implemented preventive and predictive maintenance solutions. They are the fruit of their research, creating dedicated solutions for each brand, compatible only with that brand. 

News solutions for elevator monitoring 

The combination of AI with the IoT has the potential to reshape the way the elevator industry functions. Indeed, it allows running effective predictive maintenance operations to avoid breakdowns. Elevator IoT allows countless possibilities to track and analyze various data. This helps the technician to know which actions to take and when. AI-enabled machines can produce real-time insights, and their analytics are valuable to maintenance companies.

Several solutions are already available for monitoring elevators or even performing predictive maintenance. Two ways of tracking the elevators exist: adding sensors to the cabin and communicating with the controller, which acts as the elevator’s brain.

Control panels are used to control elevators. The control panels contain all the power supply units, orchestrate all operations, and ensure safety. In addition, the elevator control panels handle other functions, like making or canceling the car calls, door control, measurement of the weight and carload, and speed.

IoT versus Sensors 

Let’s compare these two technologies.

All elevators are initially equipped with sensors. For example, there are position sensors in the shaft, door lock, temperature sensors on the engines, number-of-trips counter, and so on. They assure security and cabin control and confirm to the device that it can work properly.

These built-in sensors can detect excessive travel speeds, calculate the unit’s electrical consumption, and align the elevator to the correct floor height to prevent tripping hazards. 

There are several types of sensors.

  • Safety sensors: for the elevators to have the least possible risk of hazards, there are many sensors on safety devices. For example, if it takes too much speed or the cables are not tight enough. These are the most critical sensors:  if one of them does not behave in the right way, the elevator locks up. As a result, it will not give any order to move. They are, therefore, the most valuable sensors in case of breakdown. 
  • Operating sensors, for example, a user has pressed the button on the 2nd floor and then on the 1st floor. Therefore, the elevator will stop at these two levels.

Sensors are sensible and subject to defaults. For example, cold or dust can impact and deteriorate external sensors. Besides, installing third-party detectors on an elevator can be very expensive to collectivity additional data. The technicians will also need extra knowledge to maintain it properly. 

  • IoT technology connected to the controller 

An elevator’s main electronic board — or controller — gathers valid pre-existing data. With the right tools, it is possible to access the machine’s logs. Therefore, we can measure the traffic (such as the number of trips, door openings, and floor usage), the functioning of the components (the engine starts and stops, and the cabin door cycles), the sensor data, and the statuses computed by the controller board.

Which of these two technologies is more reliable?

The controller data appears to be more insightful and valuable than anything you could get from third parties installed outside of the existing hardware. Since most elevators already have tens of sensors installed, finding a way to use them correctly was the best solution.

Additional sensors are often added afterward. However, they do not communicate with the elevator and serve to retrieve the same level of information. For example, the elevator knows how often its doors open and close. But if you do not communicate with it via the IoT, there is no access to this information.

Therefore, a new sensor must be added to count the openings and closings.

What is the main advantage of the IoT version?  As soon as we manage to communicate with the card, we gain access to all this information from the original sensors.

With the sensors, the data is not 100% accurate. For instance, we will not see the doors open if a sensor moves and cannot count the door openings.

But that does not mean that this is the case in reality. Most of the external information sensors can provide directly from the controller, with redundancy. The IoT allows access to the same data without installing additional sensors. Sensors correspond to one information each, while the IoT provides access to all the information in a single connection.  

How can the rise of new technologies reduce the number of breakdowns? 

So, what do these new technologies add to the table?

One of the main objectives of effective maintenance is to reduce the downtime of machines or equipment as much as possible. To this end, using IoT for predictive maintenance is a huge asset for companies in terms of time, cost savings, and efficiency.

The machine produces data that the IoT device will collect. An AI will be able to use it to forecast possible breakdowns and to carry out remote checks. This ensures the elevator’s working condition without having to send a technician on site.

Let’s consider what we could call ”rebellious elevators”. They regularly break down, and then they start to work again. This could be due to a component that overheats. The elevator stops working, then cools down when the technician arrives at the location.

The breakdown will be solved by itself, but eventually, it will come back after a few days or weeks because when the technician came, he did not see any sign of weakness. The IoT can solve these recurrent breakdowns by showing what part of the elevator has caused the breakage. Then, the technician can directly know where to look on the elevator and what role he should repair. 

Breakdowns are still a widespread issue…

Despite €35 billion being spent on elevator maintenance, people get stuck for a combined 1400 years in the world’s 17 million elevators. Even if an elevator is well maintained or recently replaced, there is always a possibility of a breakdown.

However, most of them are easily identifiable, and a technician can solve them quickly. The leading causes of elevator breakdowns include power failure, door blockage, cabin overload, or electronic board problems. IoT technology makes it easier to identify them.

In some cases, it even makes them remotely solvable. Thanks to data analysis, the slightest anomaly is detectable at its earliest stages. Intermittent breakdowns, undetectable under normal circumstances, are now identifiable. Thus, they can be treated at the source with complete peace of mind. It is also, in the long term, a way of extending the lifespan of an elevator.


… but will it still be the case in the future? 

The IoT innovation in the elevator maintenance industry can help provide around-the-clock, precise, and transparent data for technicians and customers. This could help reshape the maintenance delivery towards a more virtuous and transparent model.

This could eventually reduce breakdowns and other failures, increasing technical quality and decreasing costs. We are convinced that one day, thanks to this technology and a change of model in the maintenance sector, we will be able to eradicate breakdowns. Eventually, the future elevator will perhaps remain the same… but it will not break down anymore.  

Feature Image Credit: Photo by 嵐 楓; Pexels; Thank you!

Augustin Celier

Augustin Celier is the co-founder of uptime, a French start-up for the lift of tomorrow. Uptime has developed the digital solution to avoid breakdowns and make all lift maintenance services transparent. Augustin is in charge of business development, marketing and product. He thus coordinates the commercial pole and the R&D pole. Before uptime, Augustin created several companies in France and abroad, and worked as Executive Assistant to the President EMEA of Otis. He has a Masters from SciencesPo Paris, and one from MGIMO University (Moscow).


Eco-Friendly Fleet Maintenance Trends and Strategies



Deanna Ritchie

As the world becomes increasingly aware of the impact of climate change, many businesses are seeking ways to mitigate their carbon footprint and embrace more sustainable practices. In the transportation industry, fleet maintenance is a key area where businesses can make significant strides in reducing their environmental impact.

The Big Issues With Today’s Fleet Maintenance

There are several environmental issues associated with today’s fleet maintenance practices. Here are some of the biggest:

Greenhouse Gas Emissions

Fleet vehicles are a significant source of greenhouse gas emissions, contributing to climate change. The emissions from fuel combustion and the use of heavy-duty vehicles can have negative impacts on air quality, water quality, and human health.

Hazardous Waste Disposal

Many fleet maintenance activities generate hazardous waste, such as used oil, solvents, and other chemicals. If not disposed of properly, these can contaminate soil and water, posing a risk to human health and the environment.

Resource Consumption

Fleet maintenance requires significant resources, including energy, water, and raw materials. The extraction and processing of these resources can have negative impacts on the environment, including habitat destruction, deforestation, and water pollution.

Noise Pollution

Fleet maintenance activities can be noisy, especially in urban areas. This can have negative impacts on wildlife and human health, contributing to stress and hearing damage.

Land Use and Habitat Destruction

The construction and maintenance of fleet facilities, such as maintenance yards and parking lots, can require significant amounts of land. This can lead to habitat destruction and loss of biodiversity.

Overall, fleet maintenance has significant environmental impacts, and addressing these issues will require a comprehensive approach that includes the adoption of sustainable practices, the use of alternative fuels and technologies, and the implementation of environmentally responsible waste management practices.

7 Eco-Friendly Fleet Maintenance Tips

Aligning a company’s fleet maintenance approach with larger green initiatives and eco-friendly mission statements has never been more practical. Here are several helpful tips and strategies to get you started:

1. Switch to Alternative Fuels

One of the most effective ways to make fleet maintenance more eco-friendly is to switch to alternative fuels. Traditional gasoline and diesel-powered vehicles produce a significant amount of greenhouse gas emissions. Alternative fuels, like electricity, biofuels, and even hydrogen, produce fewer emissions and can help reduce a company’s carbon footprint.

Electric vehicles (EVs) are becoming increasingly popular as a sustainable transportation option. EVs produce zero emissions and are typically much cheaper to maintain than traditional vehicles. Hydrogen fuel cell vehicles are also an option, producing only water as a byproduct. Biofuels, which are made from renewable sources like corn and soybeans, can also be used in some vehicles.

2. Use Sustainable Products and Materials

In addition to alternative fuels, businesses can also make fleet maintenance more eco-friendly by using sustainable products and materials. Here are some examples:

Biodegradable cleaning products: Traditional cleaning products can contain chemicals that can be harmful to the environment. Biodegradable cleaning products are a more sustainable alternative as they are made from natural, non-toxic ingredients that break down quickly and safely.

Recycled materials: Using recycled materials, such as oil and tires, can help reduce waste and conserve natural resources. Recycled oil can be re-refined and used again, while recycled tires can be turned into rubberized asphalt, which can be used to pave roads.

Eco-friendly lubricants and fluids: Using eco-friendly lubricants and fluids, such as biodegradable hydraulic fluids and biodegradable grease, can help reduce pollution and protect the environment.

Sustainable packaging: When purchasing products and materials for your fleet maintenance, look for sustainable packaging options, such as products that are shipped in recyclable or biodegradable packaging.

By using sustainable products and materials in fleet maintenance, you can help reduce your environmental footprint and promote sustainability.

3. Conduct Regular Preventive Maintenance

Fleet maintenance software can be a powerful tool for managing preventive maintenance as part of a green fleet management strategy. Here are some steps to help you use fleet maintenance software to perform preventative maintenance:

Set up a preventative maintenance schedule: The first step is to set up a maintenance schedule in your fleet maintenance software. This schedule should include regular maintenance tasks such as oil changes, tire rotations, and other routine maintenance tasks that will help keep your vehicles running efficiently and reduce emissions.

Track vehicle usage: Your fleet maintenance software should be able to track vehicle usage, including mileage, hours of operation, and other relevant data. This information can help you schedule maintenance tasks based on actual use rather than just time intervals, which can help reduce unnecessary maintenance and waste.

Use eco-friendly parts and materials: When performing preventive maintenance, make sure to use eco-friendly parts and materials whenever possible. This can include using recycled oil, eco-friendly tires, and other environmentally friendly products.

Monitor fuel consumption: Your fleet maintenance software should also be able to track fuel consumption for each vehicle in your fleet. By monitoring fuel consumption, you can identify inefficiencies and make adjustments to improve fuel economy, which can help reduce emissions.

Analyze data and adjust your strategy: Finally, use the data collected by your fleet maintenance software to analyze your fleet’s performance and adjust your strategy as needed. For example, if certain vehicles are consistently underperforming or require more frequent maintenance, consider replacing them with more fuel-efficient models.

The good news is that implementing fleet management software into your company’s strategy isn’t nearly as challenging or intensive as you might think. Thanks to artificial intelligence and machine learning, the upfront setup is much faster and more efficient than you may realize. This allows you to get up and running quickly.

4. Implement More Efficient Routing

Efficient routing is another strategy for making fleet maintenance more sustainable. By optimizing routes, businesses can reduce the amount of fuel their vehicles consume and the emissions they produce. This not only helps the environment but can also save the company money on fuel costs.

GPS and fleet management software can help companies optimize their routes and reduce fuel consumption. These tools can provide real-time data on traffic patterns, road closures, and weather conditions, allowing businesses to make informed decisions about their routes.

5. Promote Better Driver Education

Another important aspect of eco-friendly fleet maintenance is promoting driver education. Drivers who are trained in eco-friendly driving techniques can help reduce fuel consumption and emissions. This includes techniques such as reducing idling time, avoiding sudden accelerations and braking, and maintaining a steady speed.

In addition to driver education, businesses can also encourage their drivers to adopt sustainable habits, such as carpooling and using public transportation when possible. This not only reduces the company’s carbon footprint but can also save employees money on commuting costs.

6. Use Telematics Technology

Telematics technology refers to the use of wireless communication systems and GPS technology to transmit data from vehicles to a remote location. This technology allows businesses to track and monitor the performance of their fleet vehicles, including fuel consumption, emissions, speed, and location.

By collecting this data, telematics technology can help businesses optimize their fleet operations to make them more energy-efficient and green. Here are some of the ways that telematics technology can be used to improve fleet sustainability:

Route Optimization: Telematics systems can provide real-time traffic updates, road closures, and weather conditions to help businesses optimize their vehicle routes. By choosing the most efficient route, fleet managers can reduce fuel consumption and emissions while ensuring on-time deliveries.

Fuel Efficiency Monitoring: Telematics technology can track fuel consumption in real-time, giving fleet managers insights into how their vehicles are performing. By identifying patterns of inefficient driving or idling, businesses can take steps to reduce fuel consumption and emissions.

Maintenance Alerts: Telematics technology can also alert businesses when a vehicle is due for maintenance or repairs. By staying on top of maintenance, businesses can ensure that their vehicles are running at peak efficiency.

Driver Behavior Monitoring: Telematics technology can monitor driver behavior, including acceleration, braking, and speed. By identifying patterns of inefficient driving, businesses can provide coaching and training to drivers to help them improve their driving habits.

7. Reduce Vehicle Weight

Reducing the weight of fleet vehicles can also make maintenance more eco-friendly. The heavier a vehicle is, the more fuel it requires to move, which means it will produce more emissions. By reducing the weight of their vehicles, companies can reduce the amount of fuel they consume and the emissions they produce.

This can be achieved by removing unnecessary equipment and cargo from the vehicles, as well as using lightweight materials for vehicle maintenance. For example, aluminum wheels and carbon fiber parts can be used to reduce the weight of the vehicle.

Turn Your Fleet Green

Implementing eco-friendly fleet maintenance practices not only benefits the environment. It can also help businesses save money in the long run. By reducing fuel consumption and emissions, companies can lower their operating costs and improve their reputation as a sustainable business.

Use the tips highlighted above to reorient the way your business approaches fleet maintenance in 2023 and beyond.

Image Credit: by Lê Minh; Pexels; Thanks!

Deanna Ritchie

Managing Editor at ReadWrite

Deanna is the Managing Editor at ReadWrite. Previously she worked as the Editor in Chief for Startup Grind and has over 20+ years of experience in content management and content development.

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5 Essential Benefits of Choosing an Efficient ERP System



Kiara Miller

The corporate world is changing at a fast pace, and advanced technologies such as ERP system is at the epicenter of the ongoing digital revolution. Businesses are more dependent on technological tools and enterprise software than ever before. In fact, these tools and software are enabling businesses to drive greater success by enhancing business processes. Are you ensuring that you have the right software and tools to help your business advance swiftly?

There is a plethora of software and solutions to choose from, and each of them comes with its own merits. But what is making a real difference is the integration of Enterprise Resource Planning (ERP) systems that can streamline processes across various verticals in an enterprise.

The use of ERP systems defines a new trend altogether in the modern workplace.

Gone are the days when only multinational companies subscribed to ERP solutions for managing processes at the entire enterprise level. Nowadays even small businesses are bridging ERP systems onboard to facilitate business advancement. To validate, as per statistics, the global market size for ERP software is expected to reach USD 96.7 billion by 2024. Finances Online further explains that more than 52 percent of organizations are highly satisfied with the decision of integrating ERP systems.

Probing further, vertical ERP, small business ERP, generalist ERP, and Open Source ERP is among the most common types of ERP software that businesses are integrating. Moreover, it is also notable that most organizations are showing a keen interest in Cloud-Based SasS ERP systems, given the edge they have over traditional ERP.

All in all, the integration of ERP systems has become one of the most sought-after change management activities in the corporate world. The question is, what are the advantages of ERP software that businesses are subscribing to ERP solutions? Let us find out in this blog.

Key benefits of ERP Systems for businesses

1. Massive optimization of productivity

The ultimate objective of every enterprise is to drive the highest productivity across every vertical. However, when your employees work on recurring and repetitive tasks, not only their individual productivity takes a hit, but the efficiency of the entire organization takes a setback. This explains why businesses increasingly spend on automation tools to streamline repetitive tasks like invoicing. Even marketing automation is one of the thriving corporate trends.

All in all, the greater the automation in an enterprise the higher will be the productivity. Having said that, this is where we must look at one of the greatest benefits of integrating ERP systems. To substantiate, ERP systems come with incredible and reliable automation capabilities that can help your organization achieve its business objectives at a greater pace.

Moreover, with AI integrations as per the latest developments, the automation capabilities of ERP systems are much higher than ever before. To substantiate, as per Netsuite, employers are now happily investing in advanced ERP solutions that come with intelligent AI or machine learning capabilities.

Needless to say, artificial intelligence is the way forward for enterprises, and the blend of ERP and AI is worth embracing. This combination will certainly give your business an unparalleled competitive advantage.

2. Real-time analytics

Having timely access to analytics that can help you constantly enhance processes is nothing short of having a competitive advantage. In fact, everything in the modern enterprise world revolves around analytics. From analytics on customer engagement to analytics on inventory management gaps, you need analytics at almost every step.

This is where ERP comes up with another great feature that you should definitely not ignore. An efficient ERP system can generate real-time quantitative analytics that can lead to better planning, execution, and monitoring. Besides, the best part is that with an ERP, you can create data analytics capabilities in your businesses without even having to hire a dedicated team for data analytics.

Moreover, real-time analytics will also ensure that there is a smoother workflow management and will also aid in effective collaboration between teams. Especially if your project teams work remotely, it is essential that there is real-time sharing of data analytics for project success. ERP does not only automate data generation but also data reporting in a presentable and lucid form. However, in the ultimate sense, the positive impact of ERP is subject to the efficiency of your change management process.

3. Greater cost-efficiency in operations

Irrespective of whether you are a budding startup or an established business, operational costs will always be a top concern for you. The correlation is quite simple, the lower the operational costs the higher will be the profitability. Now, the question is, can ERP help you in bringing down operational costs? Well, the answer is a big yes and it is time you acknowledge that.

To validate, as per Datix, ERP solutions can help organizations reduce operational costs by 23 percent. This clearly indicates that you can save a major chunk of operational costs by investing in the best-in-class ERP solution. The sooner you bring ERP onboard, the greater the savings.

4. Magnification of data security

It is a well-known fact that the contemporary corporate world has a massive dependence on big data. Every business process in the modern corporate world has data engineering and analytics at the forefront of things. Data security has become a top concern, especially when cyber-attacks and data breaches are more advanced than ever before.

One of the most compelling reasons why your business needs ERP is the set of advanced data security features. When an ERP is integrated into business processes, you can set controls for accessibility to confidential data. To explain, you can control who can access sensitive information and who cannot.

Otherwise, in the absence of an ERP system, you will have to spend fortunes on cyber security and data security solutions. ERP gives you multidimensional benefits of optimized business processes along with credible data security measures.

5. Enhanced flexibility

Does your organization have a traditional on-site working style or a hybrid working style? Are you planning to move your employees to permanent work from home? ERP gives you great flexibility irrespective of your organization’s working style. Simply put, ERP can be easily integrated even in remote working cultures or hybrid cultures and will also help you to avoid employee burnout (seodiggerz dotcom “help employees avoid burnout). You can implement an ERP system with great ease and put it to work from the word go.

Besides, ERP systems also offer great flexibility in terms of future scalability. If your business is expanding and you want to add more users in the future, ERP systems offer the room to do so. Room to expand has to be the most important feature you should be looking for when you choose an ERP system. Not every ERP system may come with an effective scope of future scalability. Still, you will find a lot of ERP systems that do offer scalability features and you must choose from them.


ERP systems are changing the way businesses approach their operations and key objectives. Besides, ERP is much more than a planning resource and offers immense value in terms of optimizing business processes.

Integrating ERP for your business can be a real game changer.  The sooner you subscribe to it, the more advantageous it will prove to be for your business. Make sure you choose an ERP software that is best suited for your enterprise.

Featured Image Credit: Photo by Erik Mclean; Pexels; Thank you!

Kiara Miller

“Doing what you love is the cornerstone of having abundance in your life.” Wayne Dyer’s thoughts are well suited to Kiara Miller.
Miller has been working as a content marketing professional at “The Speakingnerd.” Her passion for writing is also visible in the innovative joys of material she provides to her readers.

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Choosing A Bank For Your Startup: Here’s Some Things To Consider




As a newly established startup, there are some key elements that your business requires to ensure your short and long-term success. A well-detailed business plan, a launch plan, early funding, and the right talent and equity from founders are all among the basic ingredients that can help get a startup off the ground.

Aside from the basics, finding the right bank, and pairing it with the right bank account is a consideration many startup entrepreneurs and small business owners often overlook during the initial induction phase of their company.

Following the collapse of California-based bank, Silicon Valley Bank (SVB), in early March 2023, startups and organizations that were caught in the middle of the catastrophe showed many other entrepreneurs and new business owners the importance of partnering with the right financial institution.

Although the fall of SVB has sent shockwaves across the economy and banking sector, for many small startups it’s crucial to find the right bank that offers them a range of tailor-made products and services. Banks that equip businesses with the right tools and resources, other than financial support and backing, can help small startups leverage financial capital to build towards a long-term goal.

While the broader economy is still battling with stubbornly high inflation and soaring interest rates, startup owners will need to consider some key aspects when choosing a bank for their business going forward.

Industry Authority

When it comes to finding the right bank for your business, size matters, and in this case, the authority a bank has within the financial system.

Many large banks often provide capital resources for specific businesses depending on their industries. In some instances, more established banks will often have a range of products and services that cater to a wide variety of businesses, regardless of whether they are early biotech startups or small-scale eCommerce businesses.

Although smaller community banks may be centered around the direct market, focussing on providing businesses in the area with the right capital and resources, it’s often riskier to place long-term bets on these institutions, especially if you’re considering expanding in the coming months or years.

Look for banks that have a longstanding track record of operations, and have provided customers with the right services to get their business going.

Location. Location. Location

Another thing to consider is the location of the bank. If you reside in a rural part of the country and have limited access to bank branches and ATMs, you might want to consider partnering with a bank that’s widely available in your area.

Although a lot of today’s banking is done online, for small startups and businesses it’s a safer option to choose a bank that they can directly find in their area in case of any disputes or discrepancies.

Different Products And Services

As already mentioned, not all banks will offer the same type of services to their clients. Some providers will have a range of businesses-related products, with less focus on individual banking solutions.

Then some banks may offer attractive business loans at low-interest rates, but product selection may be somewhat limited. The easiest way to approach this is to list a few services you may require for your business and to match this with a bank that can provide you with the right solutions at affordable pricing.

Fees And Costs

Another thing that comes to mind when choosing a bank is how much you will end up paying in fees and additional bank account charges. There are no standardized or base-level fees for opening bank accounts, and prices will differ across the board.

In some cases, banks will have pricing structures that are designed to cater to small businesses and new startups. Typically these services and products have more affordable fees, less additional costs, and come with a limited selection of banking services.

Digital Features

With so much of the banking and financial ecosystem relying on digital infrastructure, it’s important to think about how these digital features will enhance your business, its performance, and forward-going growth.

For startups, it’s always better to side with a bank that provides them with native digital tools such as a banking platform for online transactions, and other digital integrations. These services not only make it a lot easier for startups and small businesses to communicate with institutions, but it also gives them direct and on-demand access to the tools they require in their day-to-day operations.

Interest Rates

Navigating ongoing interest rate hikes has been a challenge for many new startups and businesses, especially for those that have taken out loans during the early months of the pandemic when interest rates were near zero percent.

Now that the so-called free-cash era is over, it’s difficult to find a financial institution that can provide businesses and individuals with interest rates that can help them grow their savings.

Online banks often provide more attractive interest rates, but these should be approached with caution, especially for new and young businesses. Shop around, and see which bank can offer you the best possible interest-rate deal. Not only will this help you find the most applicable bank, but it’s also a way to weigh out different options.

Customer Support

Customer service is another aspect worth considering. Some banks don’t have brick-and-mortar stores and purely rely on digital communication such as instant messaging, chatbots, and artificial intelligence (AI).

If you’re comfortable with using these tools to resolve any problems or issues before being put in contact with a human agent, consider your options carefully.

You’ll want to make sure that you have access to the best customer service agents to help you resolve any disputes or answer any queries. On top of this, some banks may provide around-the-clock service, while others may limit these operations to designated business hours.

Check Your Credit

A low credit score may often mean you have access to a limited range of products and services. On the other hand, the opposite is true for those individuals that have a higher credit score.

Larger banks will often want to partner with business owners and their companies that have a stronger line of credit. Other smaller community-orientated banks may be more lenient towards locals that have lower credit scores.

Your credit score will impact which loans you can apply for and what interest rate is offered to you. It’s often advised for startup entrepreneurs and small business owners to check the credit requirements of their banks and to see whether or not they qualify for the necessary services they require.

Final Thoughts

Finding the right bank for your startup at a time when household names are falling apart can leave any business owner and startup entrepreneur feeling uneasy. Having a few options is always better, and making sure that you partner with the right people that will help your business grow while fostering a longstanding relationship is crucial for any young startup.

Consider the needs of the business, and how the services and products these banks offer can match them. It’s best to shop around at first, to widen your options and to see what is available.

The more information you have, and know what you want for your startup, the easier it will be to find a bank that checks all the boxes and delivers financial services specifically tailored for your new business.

Published First on ValueWalk. Read Here.

Featured Image Credit: Photo by Tima Miroshnichenko; Pexels; Thank you!

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