“A penny saved is a penny earned.” That is why the banking industry needs to continue to shift to an online model for business banking. There is no longer any need for a bank to have several brick and mortar locations in every city.

The reason is that maintaining bank locations is extremely expensive and hurts the bottom line. Each physical branch generates a laundry list of expenses, including rent, insurance, real estate taxes, utilities and employees. If the branch is located in a major metropolitan area such as New York, Chicago or Paris, operating it is even more costly.

It makes much more sense for the bank to provide only ATMs in metropolitan area and locate its main center of operations in a suburb. Customers can easily and quickly handle their banking business online, at an ATM or even over a mobile phone at any time of the day or night. The technology keeps getting more sophisticated – even checks can now be deposited using a picture taken by a cell phone. Even if they are out of the country, customers who bank online can access their accounts at any time with ease.

The savings realized by eliminating unnecessary branch locations can be passed on to the bank’s customers in the form of a higher interest rate.

However, there can be some challenges when it comes to moving business banking out of the building and into cyberspace. Like many new ideas and ways of doing business, it will take some time for people to get used to. Banks need to make sure that all their business customers understand how online banking works and why it is a safe option.

It can be helpful to point out that online banking is actually in many ways more secure than the traditional model. For example, customers can be quickly notified via email or text if there is unusual account activity or if an account is close to being overdrawn. They can then take appropriate action (a balance transfer, for instance) immediately rather than having to wait to visit a branch.

Online banking is truly “an idea whose time has come”.

Robin Trehan is management and financial expert.