Business account fitness series: Tip #7 – Inform your bank of changes to your business operations and structure

Business is rarely static. Leadership changes, market expansions and updated business models can change how your company operates. When you're in the thick of this evolution, it's easy to overlook a key step: informing your bank. Without timely updates, the security of your account could be affected, payments could be delayed, and unauthorised activities could go unnoticed.

Banks play a critical role in safeguarding your financial operations. Maintaining accurate and up-to-date information about our customers is key to detecting and preventing fraudulent transactions, money laundering and tax evasion.

If your company undergoes any changes, whether they're related to its organisational structure, business activities, or expanding into new markets, please inform your bank promptly. Keeping information about your directors, shareholders, contact details and business operations up to date helps us keep your account secure. By keeping us informed, we can provide services that better suit your needs and quickly identify any shifts in your account activity. This helps to avoid unnecessary delays or interruptions, enabling your business to run smoothly.

Scenario 1: The director who resigned

After resigning, Greg, a former company director of a trade company, continued signing company cheques. The bank, unaware of the change, processed these payments in good faith. This oversight led to unauthorised payments from the company account. Because the company hadn't informed the bank of Greg’s resignation, the issue only came to light after financial loss had already occurred.

In summary: Notify your bank promptly of any changes in the senior management and authorised representatives. This allows the bank to flag transactions that could potentially lead to financial loss.

Scenario 2: Expanding abroad

Rita is a retail business owner. When her business expanded from serving local customers to operating in international markets, it led to a significant increase in overseas remittances. However, Rita didn't update the bank about this change, so the bank flagged several overseas transactions that were outside the company's service scope in the record. This led to service delays and transaction holds, which affected the company's cash flow and caused unnecessary operational disruptions.

In summary: Proactively inform your bank of changes to your business so they can provide you with services that align with your needs and better understand shifts in your account activity, which will help to prevent unnecessary delays or restrictions.

Why this matters

Timely communication with your bank ensures that your transactions are processed efficiently and your account stays protected. When your bank understands how your business is evolving, it can tailor services to meet your needs and help prevent unexpected holds or delays. Staying proactive strengthens your financial partnership with your bank and supports steady, sustainable business growth.

Tip #7 account fitness checklist:

Your business is always evolving, and your bank should always be in the know. Providing updates timely is a simple yet effective way to protect your company's finances and ensure that your operations are seamless, laying a solid foundation for future growth.

As your trusted banking partner, we're here to support you as you begin your business fitness journey and work towards achieving your ambitions. To learn more about how to establish proper business account practices, visit https://www.business.hsbc.com.hk/en-gb/campaigns/account-fitness.

Download the complete “Business Account Fitness Guide” now for more real-world business scenarios to help you understand how to establish proper business account practices for smooth operations.