The landscape of business banking in the UK is diverse and complex. Two leading players in this field, Lloyds Bank vs Metro Bank, offer unique benefits to their customers. Both offer a plethora of services catered towards businesses of different sizes and industries, with varying fee structures and unique offerings.
This article will help you delve into the particulars, making it easier for you to decide which bank aligns best with your business needs.
Lloyds vs Metro Bank
| Features | Lloyds | Metro Bank |
|---|---|---|
| Online Banking | Yes | Yes |
| Mobile App | Yes | Yes |
| 24/7 Customer Support | Yes | Yes |
| Free Business Banking Period | 6 months | 12 months |
| Overdraft Facility | Yes | Yes |
| Business Credit Card | Yes | Yes |
| International Services | Yes | Yes |
| Cash Deposit Machine Access | Limited | Wide |
| Business Savings Account | Yes | Yes |
| Business Loans | Yes | Yes |
| Business Manager Access | Yes | Yes |
| Cashback on Card Purchases | Yes | No |
| Invoice Financing | Yes | No |
| Business Mentoring | Yes | Yes |
| Asset Finance | Yes | Yes |
| Trade Finance | Yes | Yes |
| Currency Exchange Service | Yes | Yes |
| Insurance Products | Yes | No |
| Switching Service | Yes | Yes |
| Branch Network | Nationwide | Limited |
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Lloyds Bank
Lloyds Bank is one of the UK’s oldest and largest financial institutions, with a deep-rooted history dating back to the 18th century. They have a comprehensive range of business banking services tailored to meet a variety of needs.
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Pros and cons
Pros
- Lloyds Bank offers a wide range of banking solutions and additional business services, including business loans, asset finance, invoice financing, and insurance products.
- Their digital banking solutions, both online and mobile, are highly rated for their user-friendly interface and the extensive range of services available.
- Lloyds provides access to dedicated business managers and business mentoring services, offering valuable expertise and guidance.
Cons
- Their free banking period is relatively short, lasting only six months.
- Limited access to cash deposit machines compared to Metro Bank.
- Some customers have reported challenges with customer service, specifically in terms of response times.
Fees and charges
| Service | Fee |
|---|---|
| Electronic Payments | £0.35 per transaction |
| Automated Payments In | Free |
| Cash Withdrawals | 0.7% of amount withdrawn |
| Cheque Issuance | £0.65 per cheque |
| Business Credit Card Annual | £32 per card |
| Overdraft Facility | Subject to arrangement |
Unique and standout features
Lloyds Bank has an impressive business resource hub, offering a wealth of information, guides, and tools to help businesses grow and navigate challenges.
Additionally, they provide a cashback scheme on card purchases, a feature not found with Metro Bank.
Invoice financing, another standout feature, can provide businesses with advance payments based on their outstanding invoices, improving cash flow.
Moreover, their broad insurance product offerings cater to different business needs, providing an extra layer of financial security.
Metro Bank
Metro Bank, founded in 2010, is a relative newcomer to the banking scene. Despite this, they have made a strong impact with their innovative, customer-focused approach, and extended branch hours.
Pros and cons
Pros
- Metro Bank offers an extended 12-month free banking period, double that of Lloyds.
- They offer widespread access to cash deposit machines.
- Metro Bank has excellent customer service ratings, and they pride themselves on a more personalised approach.
Cons
- Metro Bank’s branch network is limited primarily to the South East of England.
- They do not offer invoice financing or cashback on card purchases.
- Metro Bank lacks a range of insurance products that businesses may find useful.
Fees and charges
| Service | Fee |
|---|---|
| Electronic Payments | £0.30 per transaction |
| Automated Payments In | Free |
| Cash Withdrawals | 0.5% of amount withdrawn |
| Cheque Issuance | £0.70 per cheque |
| Business Credit Card Annual | £39 per card |
| Overdraft Facility | Subject to arrangement |
Unique and standout features
Metro Bank’s branches, famously open seven days a week and with extended weekday hours, offer a convenience factor not seen in many traditional banks.
They also offer a ‘local business manager’ in branches, which gives customers a personal point of contact.
Metro Bank’s business accounts come with free access to the award-winning FreeAgent accountancy software, which can save businesses money and time on bookkeeping.
Conclusion – Lloyds vs Metro Bank
When comparing Lloyds and Metro Bank, it’s clear that both banks have their unique strengths and weaknesses.
Lloyds, being the more established bank, offers a wide variety of business services, including invoice financing and insurance products.
In contrast, Metro Bank, with its extended free banking period, extended branch hours, and personalised service, offers a fresh approach to banking.
Ultimately, the choice between the two banks depends on your specific business needs and preferences.
It would be wise to consider factors such as proximity to branches, online banking experience, customer service ratings, and specific services offered, before deciding.
FAQ
Metro Bank offers a longer free banking period of 12 months compared to Lloyds Bank’s 6 months.
Both banks offer robust digital banking solutions. User experience might vary, so it’s best to explore both platforms before deciding.
Yes, both Lloyds Bank and Metro Bank offer business mentoring services.
Both banks cater to businesses of all sizes, from sole traders and startups to large corporations.
While both banks strive to offer high-quality customer service, Metro Bank tends to receive higher ratings for its personalized approach.
No, only Lloyds Bank offers a range of insurance products for businesses.
Lloyds Bank has a wider branch network nationwide, while Metro Bank’s branches are primarily in the South East of England.