As businesses continue to go global, financial management has become increasingly complex, necessitating reliable and effective banking services. This article provides an in-depth comparison between two prominent UK-based banking services – Wise vs Starling Bank – focusing on their offerings for businesses.
Wise vs Starling Bank
| Features | Wise | Starling Bank |
|---|---|---|
| International Payments | Yes | Yes |
| Fee-Free Overseas Spending | Yes | Yes |
| Free Electronic Money Transfers | Yes | Yes |
| UK Bank Account | Yes | Yes |
| Multi-Currency Account | Yes | Yes |
| Mobile App | Yes | Yes |
| 24/7 Customer Support | Yes | Yes |
| Physical Debit Card | Yes | Yes |
| Integrated Accounting Software | Yes | Yes |
| Loans | No | Yes |
| Overdraft | No | Yes |
| Direct Debits | Yes | Yes |
| Contactless Payment | Yes | Yes |
| Scheduled Payments | Yes | Yes |
| Instant Notifications | Yes | Yes |
| Real-Time Balance | Yes | Yes |
| Accountant Access | Yes | Yes |
| Business Marketplace | No | Yes |
| Fixed Monthly Fee | Yes | No |
| In-App Security Features | Yes | Yes |
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Wise
Wise, initially established as TransferWise, provides businesses with a seamless experience for managing global transactions. They have earned their reputation as a transparent, low-cost service that handles international payments with ease.
Pros and cons
Pros
- Excellent exchange rates: Wise uses the mid-market rate for currency conversion, avoiding any hidden charges.
- Transparent fee structure: Fees are clearly indicated before any transaction.
- Multi-currency account: Handles 40+ currencies, ideal for international businesses.
- Free electronic money transfers: Within the Wise network, transfers are free of charge.
- Integrated accounting software: Simplifies financial management.
Cons
- No loan or overdraft facilities: Wise does not provide credit.
- Lack of physical branches: Services are purely online.
- Fixed monthly fee: A set fee regardless of usage.
- Limited additional business services: Fewer services compared to traditional banks.
Fees and charges
| Service | Fee |
|---|---|
| Monthly Account Fee | £16 |
| International Payment | 0.35% + £0.80 |
| SEPA Payment | Free |
| SWIFT Payment | £3.75 |
| Currency Conversion | 0.35% – 2.85% |
Unique and Standout Features
Wise’s main selling point is its straightforward and low-cost approach to international money transfers.
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They use the real mid-market exchange rate and charge minimal fees, ensuring transparency.
Moreover, they offer a borderless account which can handle multiple currencies at once, making it ideal for businesses dealing with international transactions regularly.
Starling Bank
Starling Bank is a digital-only bank that offers comprehensive services for businesses, including lending options, with an easy-to-use mobile app.
Pros and Cons
Pros
- No monthly fees: Starling charges no fixed monthly fees for its account.
- Overdraft and loan facilities: Provides credit services for businesses.
- 24/7 Customer Support: Always available for assistance.
- Business Marketplace: Allows access to third-party business services.
- Free UK bank transfers: No cost for domestic transfers.
Cons
- Mobile-only: All operations must be carried out via the mobile app.
- Limited international coverage: Fewer currencies are supported compared to Wise.
- Less competitive exchange rates: Exchange rates may not be as good as Wise.
- Limited physical presence: Only one branch, located in Southampton.
Fees and charges
| Service | Fee |
|---|---|
| Monthly Account Fee | Free |
| International Payment | 0.4% |
| Electronic UK Payments | Free |
| Cash Deposit | 0.3% |
| Overdraft Interest | 15% |
Unique and standout features
Starling Bank’s standout feature is its comprehensive suite of business services.
Besides the standard banking features, it offers loans, overdrafts, and a Business Marketplace, which allows businesses to integrate with other business services such as accounting software and insurance, right within the app.
Conclusion – Wise vs Starling
Both Wise and Starling Bank offer robust platforms for businesses to manage their finances efficiently.
Wise’s strength lies in its low-cost, transparent approach to international transactions, making it an excellent choice for businesses with heavy overseas dealings.
On the other hand, Starling Bank offers a more comprehensive banking experience, complete with credit services and a broader range of integrated business services.
Choosing between the two depends largely on the specific needs of your business.
If you often deal with multiple currencies or have frequent international transactions, Wise might be your go-to choice.
However, if you value having a broader suite of services, including loans and a more traditional banking experience, Starling might be more suitable.
FAQ
Yes, both provide 24/7 customer support.
Both are primarily digital. Starling has one physical branch located in Southampton.
Starling provides loan services, but Wise does not.
Yes, both offer multi-currency accounts.
Wise charges a fixed monthly fee, while Starling does not.
Yes, both banks offer integrated accounting software.
Wise is generally known to offer better exchange rates due to its use of the mid-market rate.
Wise could be more beneficial for international businesses due to its superior currency handling and better exchange rates.
Starling could be more suitable for domestic businesses due to its broader range of services and no monthly fees.
Yes, both banks allow online account opening.