As businesses grapple with the complexities of the modern market, the need for reliable, convenient and innovative banking services has never been more crucial. Two of the UK’s prominent banks, Metro Bank vs Monzo, both offer competitive business banking services. This article will scrutinise these offerings, comparing them side-by-side to aid your decision-making process.
Metro Bank vs Monzo
| Features | Metro Bank | Monzo |
|---|---|---|
| Business Current Accounts | Available with various options based on business size and need | Two options available: Monzo Business Lite and Monzo Business Pro |
| Mobile Banking App | Offers basic banking operations, less comprehensive than Monzo | Highly intuitive, offering real-time notifications and spending analytics |
| Business Saving Accounts | Available with various interest rate options | Not available |
| Cash Deposits at Branches | Available at all physical branches | Available through PayPoint, not at branches |
| 24/7 Customer Support | Available via phone, email, and in-person at branches | Available via in-app chat and email |
| International Payments | Available, with a standard fee for outbound payments | Available, with a fee lower than Metro Bank |
| Free transactions | Limited, fees may apply depending on the transaction type | Unlimited and fee-free |
| Overdraft Facilities | Available, subject to approval | Available, subject to approval |
| Business Loans | Available, with competitive interest rates | Not available |
| Business Credit Cards | Available, subject to approval | Not available |
| Integration with Accounting Software | Available with software like Xero and QuickBooks | Available with software like Xero and FreeAgent |
| Cheque Imaging | Available through the mobile app | Available through the mobile app |
| Real-time Notifications | Available through the mobile app | One of Monzo’s standout features |
| Multiple Cards/Accounts | Available with multiple signatory options | Available with the option to share account access with others |
| In-app Spending Controls | Available with the mobile app, less comprehensive than Monzo | Highly comprehensive controls including spending caps, categories, and more |
| Fee-free European Spending | Charges apply for European transactions | Fee-free for European transactions |
| Direct Debits | Available with notification feature | Available with real-time notifications |
| Standing Orders | Available with the option to set up recurring payments | Available with the option to set up recurring payments |
| Cashback Rewards | Not available | Not available |
| Business Mortgages | Available with various term and rate options | Not available |
| Fixed Term Deposits | Available with various term and rate options | 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, established in 2010, boasts an extensive network of physical branches and comprehensive business banking services. The bank provides a blend of traditional and digital banking facilities, catering to businesses of all sizes.
Pros and cons
Pros
- Comprehensive banking services: Unlike most digital banks, Metro Bank offers an extensive array of business banking services, including business loans, credit cards, savings accounts, and even business mortgages.
- Physical branches: Businesses can benefit from face-to-face customer service and deposit cash and cheques at physical branches.
- Integration with accounting software: Businesses can seamlessly integrate their Metro Bank account with accounting software like Xero and QuickBooks.
Cons
- Fee structure: Unlike Monzo, Metro Bank’s transactions are not entirely free, and fees may apply.
- Limited mobile app functionalities: Metro Bank’s mobile app is not as comprehensive or intuitive as Monzo’s app.
- No cashback rewards: Unlike some other banks, Metro does not offer cashback rewards on its business accounts.
Fees and charges
| Fees and Charges | Amount |
|---|---|
| Business Current Account monthly maintenance fee | £5 |
| Cash deposits | £0.70 per £100 |
| Outbound international payments | £25 |
| SEPA payments | £5 |
| Automated credit (in or out) | Free |
Unique and Standout Features
Metro Bank’s primary distinguishing feature is the fusion of traditional banking services with digital functionalities.
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The bank’s extensive physical network sets it apart from its digital-only counterparts, providing a tangible presence and in-person customer service.
Their offering of comprehensive business services, including loans, credit cards, and mortgages, makes them an excellent choice for businesses looking for an all-inclusive banking solution.
Monzo
Monzo, a digital-only bank launched in 2015, has rapidly gained popularity with its intuitive mobile app and no-nonsense approach to banking. They offer a streamlined, user-friendly business banking experience.
Pros and cons
Pros
- Innovative mobile app: Monzo’s user-friendly app offers real-time notifications, spending analytics, and other innovative features.
- No transaction fees: Monzo’s business banking does not charge for transactions, unlike Metro Bank.
- Fee-free European spending: Monzo does not charge extra for spending in Europe, an advantage for businesses with European transactions.
Cons
- No physical branches: As a digital-only bank, Monzo lacks physical branches for in-person customer service or cash deposits.
- Limited banking services: Monzo does not provide certain services, such as business loans, credit cards, and saving accounts.
- Customer service: While it offers 24/7 support, some users have raised concerns about Monzo’s customer service responsiveness.
Fees and charges
| Fees and Charges | Amount |
|---|---|
| Business Current Account monthly maintenance fee | £5 (Lite) – £12.50 (Pro) |
| Cash deposits via PayPoint | £1 |
| Outbound international payments | £3 |
| SEPA payments | £2 |
| Automated credit (in or out) | Free |
Unique and standout features
Monzo’s main appeal lies in its straightforward, transparent approach to banking and its cutting-edge mobile app.
The app offers real-time transaction notifications, categorisation of expenses, easy bill splitting, and more.
Its fee-free European spending makes it ideal for businesses transacting within Europe.
Despite being a digital-only bank, Monzo offers the option of depositing cash via PayPoint, which can be an advantage for some businesses.
Conclusion – Metro Bank vs Monzo
The decision between Metro Bank and Monzo ultimately hinges on your business needs.
Metro Bank, with its extensive physical network and broad range of business banking services, is ideal for businesses seeking a comprehensive banking solution, including the availability of face-to-face services.
Monzo, on the other hand, suits digitally-oriented businesses seeking a simple, intuitive banking experience, especially those transacting frequently within Europe.
FAQ
Yes, both Metro Bank and Monzo support integration with popular accounting software like Xero and QuickBooks.
Metro Bank does offer business loans, while Monzo does not currently provide this service.
While Monzo does not have physical branches, cash can be deposited via PayPoint for a small fee.
Metro Bank may charge for certain types of transactions. Monzo offers unlimited free transactions.
Metro Bank offers business mortgages, while Monzo does not provide this service.
Yes, both banks provide 24/7 customer support. However, customer service quality can vary, so it’s worth checking user reviews.