Choosing the right bank for your business is a crucial decision that can significantly impact your operations, financial management, and overall growth. Two leading options in the UK are HSBC vs NatWest, both offering a range of business banking services.
In this article, we’ll delve into an in-depth comparison of these two banking giants to help you make an informed choice.
HSBC vs NatWest
| Features | HSBC | NatWest |
|---|---|---|
| Business Current Accounts | ✔ | ✔ |
| Business Savings Accounts | ✔ | ✔ |
| Business Loans | ✔ | ✔ |
| Business Credit Cards | ✔ | ✔ |
| International Banking | ✔ | ✔ |
| Online Banking | ✔ | ✔ |
| Mobile Banking App | ✔ | ✔ |
| In-Branch Services | ✔ | ✔ |
| 24/7 Customer Support | ✔ | ✔ |
| Business Insurance | ✔ | ✔ |
| Asset Finance | ✔ | ✔ |
| Invoice Finance | ✔ | ✔ |
| Merchant Services | ✔ | ✔ |
| Treasury Services | ✔ | ✔ |
| Trade Finance | ✔ | ✔ |
| Business Training & Advice | ✔ | ✔ |
| Business Specialist Teams | ✔ | ✔ |
| Innovative Financial Solutions | ✔ | ✔ |
| Dedicated Relationship Manager | ✔ | ✔ |
| Startup Business Services | ✔ | ✔ |
 | 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 |
HSBC
HSBC is a global banking and financial services organisation with a significant presence in the UK. Their business banking solutions cater to businesses of all sizes, providing comprehensive services from everyday banking to sophisticated financial strategies.
Cutting edge payroll software
- Powerful and easy to use
- HMRC & RTI compliant
- Used by payroll pros
The CRM platform to grow your business
- Great for entrepreneurs
- Powerful data analytics
- Manage sales and data
Powerful web builder and advanced business tools
- Great for startups
- Powerful web page builder
- E-commerce available
Supercharged content planning
- Great for marketing
- Better than lists or sheets
- Manage social media
Create a new website in 10 minutes. Easy.
- Launch your website fast
- Powerful data intuitive
- No coding skills needed
Pros and cons
Pros
- Global Reach: HSBC’s international network is beneficial for businesses with or planning global operations.
- Wide Range of Services: From current accounts to complex financial solutions, HSBC covers it all.
- Innovative Technology: HSBC invests in modern banking technology, providing an efficient digital banking experience.
- Relationship Management: A dedicated manager for business accounts aids in personalised service.
- Education & Resources: HSBC offers numerous educational resources and tools for business growth.
Cons
- Customer Service: Some customers report less than ideal experiences with HSBC’s customer service.
- Fees: HSBC can be more expensive than some competitors for certain services.
- Accessibility: Despite their global presence, not all services are available in all regions.
Fees and charges
| Type of transaction | Fee |
|---|---|
| Business Current Account | £6.50 monthly fee |
| Electronic Payments (in or out) | £0.20 |
| Branch-based Credits | £1.00 |
| ATM Withdrawal | Free |
| Business Credit Card | £32 annual fee |
Unique and standout features
HSBC stands out for its global reach and innovative solutions.
It provides international business banking, facilitating overseas transactions and global growth.
It also excels in offering technology-driven services, such as the HSBCnet platform, providing businesses with a one-stop solution for all their banking needs, including payments, cash management, and reporting.
Their “Working Capital Cycle” model helps businesses manage cash flow effectively.
Additionally, their Knowledge Centre and Business Guides provide valuable insights to help businesses grow and navigate financial challenges.
NatWest
NatWest, a prominent name in the UK banking sector, offers a comprehensive suite of business banking services. They cater to businesses of varying sizes and sectors, emphasising personalised service and local understanding.
Pros and cons
Pros
- Local Expertise: NatWest, being a predominantly UK-based bank, offers deep local market understanding.
- Wide Service Range: NatWest provides a broad array of financial services, catering to various business needs.
- Digital Solutions: NatWest provides a robust online and mobile banking platform.
- Entrepreneur Support: NatWest runs an Entrepreneur Accelerator programme to support new businesses.
- Excellent Customer Service: Known for their strong customer support, NatWest is responsive and accessible.
Cons
- International Services: Compared to HSBC, NatWest’s international services are limited.
- Digital Experience: Some users find their digital platforms less intuitive than those of competitors.
- Business Account Restrictions: Certain conditions apply to free business banking, which may not suit all businesses.
Fees and charges
| Type of transaction | Fee |
|---|---|
| Business Current Account | £5 monthly fee |
| Electronic Payments (in or out) | £0.35 |
| Cash Payments (in or out) | £0.70 per £100 |
| Cheques (in or out) | £0.70 |
| Business Credit Card | £30 annual fee |
Unique and standout features
NatWest’s standout features revolve around their commitment to personalised service and local market understanding.
Their “FreeAgent” tool, a cloud-based accounting software offered free to business current account holders, simplifies financial management for SMEs.
They also have an impressive ‘Entrepreneur Accelerator’ programme, providing startups with mentorship, insight, and facilities to help them grow.
Their Tyl solution offers businesses easy card payment services with next-day settlement to improve cash flow.
Conclusion – HSBC vs NatWest
Choosing between HSBC and NatWest for business banking largely depends on your business needs.
HSBC, with its global reach and innovative solutions, is particularly suited for businesses with international operations.
In contrast, NatWest’s deep local understanding, personalised service, and tools like FreeAgent make it an excellent choice for UK-centric businesses, especially startups and SMEs.
FAQ
Yes, both HSBC and NatWest offer a range of business loans.
Yes, both banks provide 24/7 customer support.
Both HSBC and NatWest offer online banking and mobile banking apps.
Yes, both banks provide business insurance options.
Yes, both banks offer a range of services tailored to startups.
HSBC charges an annual fee of £32 for their business credit card, while NatWest charges £30.
Yes, both banks offer a range of resources and tools for business training and advice.
HSBC has a strong global presence, making it easier for businesses to operate internationally. NatWest also offers international banking services, but they might not be as extensive as HSBC’s.
HSBC charges £0.20 for electronic payments (in or out), whereas NatWest charges £0.35.
Yes, NatWest runs the Entrepreneur Accelerator programme, while HSBC offers the ‘Working Capital Cycle’ model and other resources to support businesses.