In the past few years, the UK banking industry has been disrupted by the rise of digital-only “challenger banks.” These neobanks offer an array of competitive services to businesses, aiming to leverage digital technology for easier and more efficient banking. In this comparative article, we will focus on two significant players in this space: Monese vs Starling Bank. We will delve into their features, fees, unique offerings, and consider which of the two might be the right fit for your business banking needs.
Monese vs Starling
| Feature | Monese | Starling Bank |
|---|---|---|
| Full FSCS Protection | Monese funds are safeguarded in separate customer accounts, but are not covered by the FSCS | Starling is covered by the FSCS up to £85,000 |
| Free Business Account Option | Free plan available with basic features | Free business account available for small businesses, freelancers, and sole traders |
| UK Account Number and Sort Code | Provided for business accounts | Provided for all business accounts |
| Euro IBAN | Available for international transactions | Available for European transactions |
| Free Card Transactions in the UK | No charge for card transactions in the UK | No charge for card transactions in the UK |
| Free ATM Withdrawals | £1 per withdrawal in the UK | Free ATM withdrawals in the UK |
| Direct Debit Support | Supported with the business account | Supported with all business accounts |
| Standing Order Support | Supported with the business account | Supported with all business accounts |
| 24/7 Customer Support | Available via email and phone | Available via in-app chat, email, and phone |
| Real-time Notifications | Notifications for all account activities | Notifications for all account activities |
| Google Pay/Apple Pay | Supported for all accounts | Supported for all accounts |
| Integrated Accounting | Not available | Available; Starling partners with accounting software platforms like Xero and QuickBooks |
| Overdraft Facility | Not available | Available with interest charges |
| Cheque Scanning via Mobile App | Not available | Available for all business accounts |
| Business Loan Services | Not available | Available; terms and conditions apply |
| Business Credit Card | Not available | Not available |
| Multiple User Access | Not available | Available; multiple cards can be issued for the same business account |
| Instant Payment Alerts | Available for all transactions | Available for all transactions |
| Cash Deposit via Post Office | Not available | Available; small fee applies |
| Mobile Check Deposit | Not available | Available for all business accounts |
 | Tide Business Bank Accounts ✓ Free, Plus, or Pro Account ✓ iOS & Android Mobile App ✓ Upload & Auto-Match Receipts Pricing Trial period Contact | |
 | Card One Money ✓ No Credit Checks ✓ Simple Fees ✓ Up To 3.5% Cashback Pricing Trial period Contact | |
 | ANNA Money ✓ Apply In 10 Minutes ✓ Bookkeeping & Payroll Tools ✓ User-Friendly Mobile App Pricing Trial period Contact | |
 | HSBC Business Banking ✓ Business Current Account ✓ In-Branch, Online & App Banking ✓ FSCS Protected Pricing Trial period Contact | |
 | Metro Business Banking ✓ Business Current Account ✓ High Street Presence ✓ FSCS Protected Pricing Trial period Contact | |
 | Mettle Business Banking ✓ Business Bank Account ✓ Online & App ✓ Quick & Easy Application Process Pricing Trial period Contact | |
 | Monzo Business Banking ✓ Business Current Account ✓ Dedicated mobile app experience ✓ FSCS Protected Pricing Trial period Contact | |
 | Virgin Money ✓ Business M Account ✓ In-Store, Online & App Banking ✓ Insights & Forecasting Platform Pricing Trial period Contact |
Monese
Monese is a pioneer in providing mobile banking services without the need for a UK address, making it accessible for those who are often underserved by traditional banks. Its simplicity and user-friendly interface make it an enticing option for businesses looking for an uncomplicated banking solution.
Pros and cons
Pros
- Quick Setup: Monese boasts a quick and easy set-up, making it ideal for businesses needing to start banking immediately.
- No UK Address Required: The ability to open an account without a UK address is a unique feature that sets Monese apart.
- Free Basic Business Account: A key attraction for small businesses is the option to have a free business account.
- Fee-free Foreign Currency Spending: Monese does not charge extra for card transactions in foreign currencies, making it a good option for businesses with international operations.
Cons
- Limited Business Services: Monese lacks certain features such as business loans, multiple user access, integrated accounting, and overdraft facilities.
- No FSCS Protection: Monese doesn’t offer Financial Services Compensation Scheme (FSCS) protection which may be concerning for businesses.
- ATM Withdrawal Fees: Unlike Starling, Monese charges for ATM withdrawals, which could be an additional cost for businesses regularly dealing in cash.
Table of fees and charges
| Fee Type | Amount |
|---|---|
| Monthly Fee for Free Business Account | £0 |
| ATM Withdrawals | £1 per withdrawal |
| International Money Transfers | Up to 2% fee |
Unique and Standout Features
Monese’s standout feature is its flexibility.
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- Powerful web page builder
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As one of the few banking services that doesn’t require a UK address, it provides an inclusive service to those who may struggle with traditional banks’ criteria.
This can be a boon for businesses without a fixed base or freelancers who travel frequently.
Furthermore, Monese’s policy of no extra charge for foreign currency spending makes it an attractive choice for businesses with overseas transactions.
Starling Bank
Starling Bank is a fully licensed and regulated bank that offers a comprehensive range of business banking services. With a broad spectrum of features, Starling has managed
to make a significant impact on the market and has become an appealing option for small to medium-sized businesses.
Pros and cons
Pros
- Full Range of Business Banking Services: Starling offers a comprehensive suite of features such as integrated accounting, business loans, and overdraft facilities.
- FSCS Protection: Starling offers full FSCS protection, ensuring customers’ funds are safeguarded up to £85,000.
- No ATM Withdrawal Fees: Starling doesn’t charge for ATM withdrawals, making cash transactions cost-effective.
- Multiple User Access: Starling supports multi-user access, which is beneficial for businesses with multiple decision-makers.
Cons
- No Business Credit Card: Like Monese, Starling does not offer business credit cards, which may limit spending flexibility.
- May not be Suitable for Larger Businesses: While Starling’s services are extensive, they are primarily tailored towards SMEs rather than larger corporations.
Table of fees and charges
| Fee Type | Amount |
|---|---|
| Monthly Fee for Free Business Account | £0 |
| ATM Withdrawals | £0 |
| Electronic Money Transfers within UK | £0 |
Unique and standout features
Starling’s strongest asset is its robust suite of business banking features.
Its integrated accounting tools allow businesses to manage their finances more efficiently.
Starling also provides business loans and overdraft facilities, which are particularly useful for SMEs needing additional capital.
Its cheque imaging feature is a significant advantage, as it allows businesses to deposit cheques via the mobile app, saving a trip to the bank.
Conclusion – Monese vs Starling
When considering Monese vs Starling for business banking, the decision will largely depend on your business’s specific needs.
If you value inclusivity, flexibility, and fee-free foreign transactions, Monese could be an excellent fit.
However, for more comprehensive business services, including integrated accounting, business loans, and FSCS protection, Starling Bank may be the preferable option.
Both banks provide free business accounts, and they are built with digital convenience and real-time account management in mind.
Ultimately, the choice should be dictated by which features align best with your business needs and operations.
FAQ
While Starling Bank offers full FSCS protection, meaning your deposits are protected up to £85,000, Monese does not. However, Monese does safeguard client funds in segregated accounts.
You can deposit cash into your Starling account at any Post Office in the UK. However, Monese does not currently support cash deposits.
Starling Bank provides both overdraft facilities and business loan services. Monese does not offer these services.
Yes, both Monese and Starling Bank support Direct Debits and Standing Orders.
Yes, both Monese and Starling Bank offer 24/7 customer support.
Yes, both banks support international transactions. Monese does not charge extra for card transactions in foreign currencies, whereas Starling charges a small fee for foreign currency transfers.
As of now, neither Monese nor Starling Bank offers business credit cards.
Starling Bank allows multiple users on the same account, which can be very helpful for businesses with multiple decision-makers. However, Monese does not currently offer this feature.
Starling Bank allows you to deposit cheques via their mobile app. Monese currently does not have this feature.
Starling Bank offers free ATM withdrawals, while Monese charges £1 per withdrawal.