Choosing a bank for your business is no small task. Two contenders that UK businesses might consider are Metro Bank vs Barclays. Both banks are well-regarded and offer a range of services tailored for businesses. This article compares these two banking giants to help UK business owners understand what each bank offers and make an informed decision.
Metro Bank vs Barclays
| Features | Metro Bank | Barclays |
|---|---|---|
| Online banking | Comprehensive online banking platform | Full-featured online banking |
| Mobile app | Award-winning app with features like mobile cheque deposit | Advanced app with features like transaction categorisation |
| Business loans | Various loans available including government-backed loans | Wide range of loans, including unsecured and secured options |
| Overdraft facility | Customised limits subject to approval | Customised limits subject to approval |
| Credit cards | Business credit cards available with cashback | Business and corporate credit cards available |
| Asset finance | Various asset finance solutions available | Comprehensive asset finance options |
| International payments | Supported, fees from £5 | Supported, fees from £15 |
| FX services | FX services available with competitive rates | FX services available, includes hedging options |
| Cash handling | 0.70% charge for cash payments in/out | 0.90% charge for cash payments in/out |
| Invoice finance | Invoice finance services available | Wide range of invoice finance options |
| Business insurance | Comprehensive range of business insurance options | Extensive range of business insurance options |
| Business savings account | Range of business savings account options | Various business savings account options |
| 24/7 customer support | 24/7 UK-based customer service | Customer service available during business hours |
| Free business banking period | 12 months free, then £5 per month | 12 months free for start-ups, then £6 per month |
| Business advisory services | Advisory services and workshops available | Advisory services and sector-specific support |
| Business seminars/workshops | Regular seminars and workshops | Limited availability |
| Cashback on card purchases | Available on business credit and debit cards | Not available |
| Dedicated relationship manager | Available for eligible businesses | Available for eligible businesses |
| UK-based customer service | All customer service UK-based | Main customer service UK-based |
| Personalised card designs | Available for business cards | Not available |
 | 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 |
Metro Bank
Metro Bank, a relative newcomer to the banking scene, is celebrated for its innovative approach to banking services. As a challenger bank, Metro Bank is pushing the boundaries of what traditional banking looks like for UK businesses.
Pros and cons
Pros
- Extended Opening Hours: Metro Bank branches have extended opening hours, including weekends, which is a rarity among banks.
- Exceptional Customer Service: The bank has a reputation for strong customer service and has a UK-based call center.
- Innovative Mobile App: Metro Bank’s mobile app comes with a wide range of useful features including block/unblock cards, mobile cheque deposit, and budgeting tools.
- Local Business Managers: Metro Bank offers each business client a local business manager to handle their account.
Cons
- Limited Branch Network: Metro Bank’s physical branch network is not as extensive as some other banks.
- Young Institution: Being a relatively new bank, it lacks the extensive history and reputation of established banks like Barclays.
Fees and charges
| Service | Metro Bank Fee |
|---|---|
| Monthly account fee | £5 (Free for the first 12 months) |
| Electronic payments (UK) | Free |
| Cash payments in/out | 0.70% of the cash value |
| Cheques payments in/out | £0.70 per cheque |
| International payments | From £5 |
Unique and standout features
Metro Bank stands out for its strong focus on customer service, accessibility, and a modern banking experience.
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
Their branches open 7 days a week, which is quite unique in the banking sector.
They also offer an innovative mobile banking application with features like mobile cheque deposits and instant block/unblock of cards.
Metro Bank’s business banking also includes a cashback rewards program for debit and credit card purchases.
Furthermore, businesses get the benefit of a dedicated Local Business Manager, who helps tailor Metro Bank’s services to suit the business needs.
Barclays
Barclays is a stalwart of the UK banking industry. It offers a wealth of services for businesses, backed by over three centuries of banking experience and a solid reputation.
Pros and cons
Pros
- Extensive Services: Barclays offers a wide range of business services, including loans, asset finance, and insurance.
- Strong Global Presence: Barclays has a strong international presence, which is beneficial for businesses with global operations.
- Wealth of Experience: Barclays has centuries of experience and a solid reputation in banking.
- Excellent Online and Mobile Banking: Barclays offers robust online and mobile banking platforms.
Cons
- Limited Customer Service Hours: Unlike Metro Bank, Barclays does not offer 24/7 customer service.
- Fewer Innovative Features: Compared to Metro Bank, Barclays offers fewer innovative features.
Fees and charges
| Service | Barclays Fee |
|---|---|
| Monthly account fee | £6 |
| Electronic payments (UK) | £0.35 per payment |
| Cash payments in/out | 0.90% of the cash value |
| Cheques payments in/out | £0.65 per cheque |
| International payments | From £15 |
Unique and standout features
Barclays stands out for its comprehensive range of services and robust global presence.
They offer a variety of sector-specific support, such as unique products for the agricultural sector and bespoke services for tech and digital businesses.
Barclays also offers access to a network of business mentors through their ‘Eagle Labs’ and ‘Barclays Local Insights’ provides valuable data about your business area.
Conclusion – Metro Bank vs Barclays
Choosing between Metro Bank and Barclays largely depends on your business needs.
If you value an innovative approach, extended service hours, and a highly-rated mobile app, Metro Bank could be the ideal choice.
However, if your business requires a broad range of services, an international presence, and the backing of a bank with centuries of experience, Barclays may be a better fit.
It’s important to weigh up the different features, fees, and unique aspects each bank offers when making your decision.
FAQ
Yes, Metro Bank offers free business banking for the first 12 months. After this period, a monthly account fee applies.
Barclays offers a start-up package that includes 12 months of free business banking for new businesses.
Yes, both banks provide dedicated relationship managers for eligible businesses.
Unique features of Metro Bank include extended opening hours, a cashback rewards program, and a highly-rated mobile app with features like mobile cheque deposits.
Unique features of Barclays include sector-specific support, access to a network of business mentors, and robust international banking services.
Both banks have different fee structures. Comparing the fees for your specific banking needs will provide a clearer picture of which bank is more cost-effective.
Yes, both Metro Bank and Barclays offer mobile apps on iOS and Android platforms.
Metro Bank offers 24/7 customer support, whereas Barclays does not.
Yes, both Metro Bank and Barclays offer robust online and mobile banking platforms.
Barclays, with its strong international presence and global services, might be a better fit for businesses with international operations.