Low Hanging Fruit: Hosted App in the Canadian Banking Industry

For a few months now, I've been mulling over the concept of hosted banking applications, provided by Canadian banks, in support of Canadian small business. Recently TD added an option to pay your income taxes through their on-line banking application, but that's not a terribly interesting idea. They've also added the ability for small biz to pay GST and payroll deductions - but there's no integration between payroll deductions and the actual payroll......


Small businesses are usually ignored by the banking industry, heck - they're ignored by the telecom, automotive and retail industries as well.
Imagine an application that would allow you to input employee wages, and the application would take care of all the deductions, and then complete the process by direct depositing the employee wages into their bank account. It's not rocket science - large corporations have software that does this all the time. Small businesses generally don't have the access to the kind of payroll software solutions that large corporations do - and don't have the in-house technical expertise to be able to take the initiative to roll out an application like this.

But what if a Canadian bank did this? And did it in a hosted application model --- all web based. It would be a PERFECT niche market, especially for those small biz owners who had 25 and fewer employees. They'd log into the bank portal, add the wages, click a button that automatically calculates the taxes and deductions (transfers those deductions to the government), and transfers the remainder wages to the employee. It's linked to the small biz bank account - voila.  At the end of the year, there's an option to create T4 slips that automatically get sent to the employee.... shazam!

The monthly fees for a service like this could be palatable for the small biz owner, and they're able to save time, be more productive and improve efficiencies. Wanna take it one step further? Banks should also integrate the best income tax rebate software.... imagine software that would coach you through how to get the best rebate possible....now that would be efficient :-)


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