When it comes to choosing a bank for your business, it’s crucial to find one that meets your specific needs and provides the necessary tools and features to streamline your financial operations. In the UK, Wise vs Monzo are two popular options for business banking.
In this article, we will compare the features, pros and cons, fees and charges, as well as unique standout features of both Wise and Monzo, helping you make an informed decision for your business banking needs.
Wise vs Monzo
Here is a quick overview of the key features offered by Wise and Monzo for business banking:
Cutting edge payroll software
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Powerful web builder and advanced business tools
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| Features | Wise | Monzo |
|---|---|---|
| Account Types | Business | Business |
| International | Yes | Limited |
| Multi-currency | Yes | No |
| Mobile App | Yes | Yes |
| Online Banking | Yes | Yes |
| Card Payments | Yes | Yes |
| Invoicing | Yes | Yes |
| Integrations | Yes | Yes |
| Customer Support | Email, Live Chat | In-app chat, Phone, Email |
 | 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 |
Wise
Wise, formerly known as TransferWise, has gained popularity for its international money transfer services. However, the company also offers business banking solutions tailored to the needs of small and medium-sized enterprises (SMEs). Wise provides a fully digital banking experience, focusing on simplicity, cost-effectiveness, and international capabilities.
Pros
- Competitive foreign exchange rates and low fees for international transactions.
- Easy multi-currency accounts for businesses operating globally.
- Efficient and user-friendly online platform and mobile app.
- Quick and seamless onboarding process.
Cons
- Limited availability of physical branches and cash handling services.
- Limited business-specific features compared to traditional banks.
- Some businesses might require additional services that Wise does not provide.
Table of fees and charges
| Fees and Charges | Wise |
|---|---|
| Account Maintenance Fee | £0 |
| Domestic Transfers | £0 |
| International Transfers | Varies by currency and destination |
| Debit Card Payment Fees | 0.2%-0.6% of transaction value, depending on currency |
| ATM Withdrawal Fees | Varies by currency |
| Invoicing | Free |
| Currency Conversion Fee | Low and transparent fees, based on real mid-market exchange rate |
Unique and standout features
- Multi-currency Accounts: Wise offers businesses the ability to hold and manage funds in over 50 currencies, making it an excellent choice for businesses operating internationally.
- Borderless Banking: With Wise, businesses can receive payments from customers in different countries without any additional charges or currency conversion fees.
- Competitive Exchange Rates: Wise provides real mid-market exchange rates, ensuring transparency and potentially saving businesses money on currency conversions.
Monzo
Monzo is a digital bank known for its user-friendly mobile app and innovative approach to banking. While initially focused on personal banking, Monzo has expanded its services to cater to the needs of businesses as well. Monzo offers a range of features designed to simplify financial management and provide a seamless banking experience for entrepreneurs and small businesses.
Pros
- Intuitive and user-friendly mobile app with powerful money management tools.
- Instant notifications and real-time transaction updates.
- Dedicated business support and customer service.
- Active community and regular updates based on user feedback.
Cons
- Limited international capabilities compared to Wise.
- Limited cash deposit options, as Monzo primarily operates digitally.
- Some users have reported that customer service response times can be slow during peak periods.
Table of fees and charges
| Fees and Charges | Monzo |
|---|---|
| Account Maintenance Fee | £0 |
| Domestic Transfers | £0 |
| International Transfers | £0.50 – £15, depending on destination |
| Debit Card Payment Fees | No fees |
| ATM Withdrawal Fees | No fees (up to £200 per month, 3% fee thereafter) |
| Invoicing | Free |
| Currency Conversion Fee | 2.35% – 2.50% |
Unique and standout features
- Powerful Money Management Tools: Monzo’s mobile app offers detailed spending insights, budgeting tools, and categorization of expenses, helping businesses gain better control over their finances.
- Integration with Accounting Software: Monzo integrates with popular accounting software, such as Xero and FreeAgent, allowing businesses to streamline their financial management processes.
- Business Marketplace: Monzo provides access to a marketplace of third-party business tools and services, offering businesses a range of options to enhance their operations.
Conclusion – Wise vs Monzo
Both Wise and Monzo offer digital banking solutions tailored to the needs of businesses.
Wise excels in international capabilities, with competitive exchange rates and multi-currency accounts, making it an ideal choice for businesses with global operations.
On the other hand, Monzo focuses on providing a user-friendly experience, powerful money management tools, and seamless integration with accounting software.
When choosing between Wise vs Monzo for your business banking needs, consider the specific requirements of your business, such as international transactions, multi-currency support, and preferred user experience.
Review the fees and charges associated with each bank, as well as the unique features they offer. Ultimately, the right choice will depend on your business’s individual needs and priorities.
FAQ
Yes, both Wise and Monzo offer business accounts specifically designed for SMEs and entrepreneurs.
No, both banks do not charge fees for domestic transfers within the UK.
While both banks primarily operate digitally, Monzo offers limited cash deposit options through selected PayPoint locations.
Wise offers better international capabilities, with lower fees for international transfers and the ability to hold and manage funds in multiple currencies.
Yes, Wise offers customer support through email and live chat, while Monzo offers support through in-app chat, phone, and email.
Remember to thoroughly research and consider the specific needs of your business before making a decision on which bank is the best fit for your business banking requirements.