Monese vs Monzo for business banking – Features, differences, pros and cons compared

As a UK business owner, choosing the right bank account for your company is a critical decision. There are several options available in the market, but two of the most popular digital banks for business banking are Monese vs Monzo.

In this article, we will compare the two platforms to help you decide which one is better suited to your business needs.

Monese vs Monzo

Feature	Monese	Monzo
Account types	Business account only	Business account only
Monthly fees	£9.95 – £24.95/month	Free
International payments	Yes	Yes
Currency exchange	Yes	Yes, but only in the app
Physical card	Yes	Yes
ATM withdrawals	£1/withdrawal	Free up to £200/month, then 3%
Overdrafts	Not available	Available
Customer service	Email and in-app chat	Email and in-app chat
App features	Expense tracking, budgeting tools, and tax preparation	Budgeting tools and saving pots

This is not an exhaustive list of features, and it’s important to consider other factors like transaction fees, customer service, and user experience when choosing between the two platforms.

Statistics

1. Monese:

• Over 2 million registered customers as of 2021, making it one of the leading digital banking platforms in Europe.
• Supports transactions in over 20 currencies, allowing businesses to receive payments and make transactions in multiple currencies without additional fees.
• Offers multi-user access to business accounts, enabling collaboration and granting controlled access to team members or accountants.

2. Monzo:

• More than 5 million customers as of 2021, establishing it as one of the largest digital banks in the UK.
• Over £4 billion of transactions processed monthly, showcasing the popularity and scale of its banking services.
• Provides integrations with popular accounting software such as Xero and FreeAgent, facilitating seamless financial management for businesses.

Monese pros and cons

Monese pros

• No credit checks – Monese does not perform credit checks when you sign up for a business account, making it an excellent option for new businesses or those with a less-than-perfect credit history.
• No fees – Monese offers free account opening and maintenance, with no monthly fees for business accounts.
• Multiple currencies – Monese supports multiple currencies, allowing you to receive payments in different currencies without incurring any fees.
• Good customer support – Monese has a reputation for excellent customer support, with a 24/7 chat service available.

Monese cons

• Limited features – Monese’s business account does not offer as many features as other banks, such as Monzo.
• Lower transaction limits – Monese has lower transaction limits than other banks, making it less suitable for larger businesses.
• No overdrafts – Monese does not offer overdrafts, so you will need to make sure you have sufficient funds in your account at all times.

Monzo pros and cons

Monzo pros

• Budgeting tools – Monzo’s app has several budgeting tools, such as spending categories and notifications, to help you manage your business finances effectively.
• High transaction limits – Monzo has high transaction limits, making it suitable for larger businesses.
• Overdraft facility – Monzo offers overdrafts to business account holders, providing a safety net for unexpected expenses.
• Competitive fees – Monzo’s fees are competitive, with no monthly fees for business accounts and reasonable transaction fees.

Monzo cons

• Credit checks – Monzo performs credit checks when you sign up for a business account, which can be a disadvantage for new businesses or those with poor credit history.
• Limited currency support – Monzo only supports GBP accounts, which can be a disadvantage for businesses that need to receive payments in different currencies.
• No physical branches – Monzo is a digital bank, which means there are no physical branches where you can speak to a representative in person.

Key differences

One of the key differences between Monese and Monzo is the number of features they offer.

Monzo has more features, such as budgeting tools and overdraft facilities, making it a better option for larger businesses.

Monese, on the other hand, has fewer features but is more suitable for smaller businesses or those with a less-than-perfect credit history.

Another significant difference is the transaction limits. Monzo has higher transaction limits than Monese, which means it is better suited for larger businesses that need to make regular high-value transactions.

Costs and considerations

Monese offers a free account opening and maintenance with no monthly fees, making it an excellent option for small businesses with limited budgets. However, the lower transaction limits and limited features may not be suitable for larger businesses.

Monzo also offers no monthly fees for business accounts, but transaction fees may apply, depending on the number of transactions you make. However, the budgeting tools, overdraft facility, and high transaction limits make it an excellent option for larger businesses.

Conclusion

Choosing between Monese vs Monzo for business banking will depend on your business size, credit history, and banking needs.

Monese is a good option for small businesses or those with a less-than-perfect credit history, while Monzo is better suited for larger businesses with more complex banking needs.

Ultimately, it’s essential to consider your business’s unique requirements and compare the features, costs, and benefits of each platform before making a decision.

It’s also worth considering the reputation and customer service of each platform. Monese has a reputation for excellent customer service, while Monzo’s app is known for its user-friendly design and helpful budgeting tools.

In summary, both Monese and Monzo offer competitive options for business banking in the UK. By weighing up the pros and cons, key differences, costs, and considerations of each platform, you can choose the one that best suits your business needs and budget.

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