In an era when digital banking has become more popular than ever, two fintech firms stand out in the UK business banking sector: Starling Bank vs Monzo. Both offer easy-to-use, feature-packed, mobile-first banking solutions tailored to the needs of small to medium enterprises (SMEs) and startups.
But which one is right for your business? This article aims to help you decide by comparing the two on the basis of features, pros, cons, fees, charges, and unique offerings.
Starling Bank vs Monzo
| Features | Starling Bank | Monzo |
|---|---|---|
| Bank Accounts | Business and personal | Business and personal |
| Mobile banking | Yes | Yes |
| Online banking | Yes | Yes |
| UK Payments | Free | Free |
| International Payments | Charges Apply | Charges Apply |
| Overdraft | Yes | Yes |
| Loans | Yes | No |
| Card | Debit | Debit |
| Instant notifications | Yes | Yes |
| Spending insights | Yes | Yes |
| FSCS Protection | Yes | Yes |
| Integration | Xero, QuickBooks, FreeAgent | Xero, QuickBooks, FreeAgent |
 | 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 |
Starling Bank
Founded in 2014, Starling Bank has been at the forefront of the digital banking revolution. It provides a highly user-friendly business bank account that can be managed entirely from its mobile app, offering real-time notifications, insightful reports, and efficient payment management.
Cutting edge payroll software
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Pros and cons
Pros
- No monthly fees for standard account.
- Seamless integration with popular accounting software.
- 24/7 customer service.
- Overdraft and loan facilities available.
Cons
- Limited physical presence.
- Fees for international payments.
- Lack of extensive lending options.
Table of fees and charges
| Service | Fee |
|---|---|
| Monthly Account Fee | £0 |
| UK Payments | £0 |
| Cash Withdrawal in the UK | £0 |
| International Payment | £5.50 |
| Cash Withdrawal Abroad | 2% of withdrawal |
Unique and standout features
Starling Bank offers a ‘Spaces’ feature which allows you to separate your funds into different pots for tax, payroll, or any other purpose. It also offers a ‘Business Toolkit’ add-on for £7 per month, which comes with a range of features including invoice generation, VAT management, and more.
Monzo
Monzo, founded in 2015, is another leading player in the UK’s digital banking space. It offers a simple, smart, and secure business bank account that provides intuitive money management, instant spending notifications, and easy budgeting.
Pros and cons
Pros
- Fast and simple account set-up.
- Instant spending notifications.
- Easy-to-use budgeting tools.
- Integration with popular accounting software.
Cons
- £5 monthly fee for business account.
- No overdraft or loan facilities for businesses.
- Limited customer service hours.
Table of fees and charges
| Service | Fee |
|---|---|
| Monthly Account Fee | £5 |
| UK Payments | £0 |
| Cash Withdrawal in the UK | £0 |
| International Payment | £3 + 0.3% of payment |
| Cash Withdrawal Abroad | 3% of withdrawal |
Unique and standout features
Monzo’s standout feature is its ‘Pots’ function, similar to Starling’s ‘Spaces’, which allows you to partition your balance for different purposes. Another notable feature is the ‘Tax Pots’, which automatically sets aside a percentage of your income for tax. Monzo also provides comprehensive spending categorisation, helping you track and manage your expenses more effectively.
Conclusion
Both Starling Bank and Monzo offer robust digital banking services suitable for modern businesses. If you are looking for a free business account with access to loans and overdraft facilities, Starling Bank might be your preferred choice. However, if your focus is more on budgeting and spending insights, and you don’t mind a nominal monthly fee, Monzo may be more suitable.
Remember, the best bank for your business will depend on your specific needs. Make sure to assess the services, costs, and benefits of each bank against your business requirements before making a decision.
FAQ
Yes, both Starling Bank and Monzo are fully licensed banks in the UK and offer FSCS protection for deposits up to £85,000.
While both banks primarily operate through their mobile apps, they also offer online banking allowing you to access your accounts from a desktop.
Yes, both banks allow you to deposit cheques via their mobile apps, and cash can be deposited at designated locations.
Yes, both banks offer integration with popular accounting software such as Xero, QuickBooks, and FreeAgent.
Yes, both banks offer accounts specifically designed for sole traders and small businesses.