HSBC vs Barclays for business banking – How do the features and pricing compare?

When it comes to business banking in the UK, two of the largest banks are HSBC and Barclays. Both have a wide range of offerings and can cater to the needs of various businesses, but they also have their own set of pros and cons, differences, and costs that are worth considering before choosing one over the other.

In this article, we will compare HSBC vs Barclays in terms of their business banking services, fees, and other factors to help UK business owners make an informed decision.

HSBC vs Barclays

Criteria	HSBC	Barclays
Account Types	Business Current Account: no monthly fee, Community Account: £6.50 monthly fee, Start-up Account: no monthly fee	Business Banking Account: no monthly fee, Business Premium Account: £6.00 monthly fee, Business Foreign Currency Account: no monthly fee
Online Banking	HSBCnet: no fee, mobile app: no fee, and online banking: no fee	Barclays.net: no fee, mobile app: no fee, and online banking: no fee
Business Loans	Asset finance: fees vary, overdrafts: fees vary, and working capital finance: fees vary	Secured and unsecured loans: fees vary, overdrafts: fees vary, invoice financing: fees vary, and asset finance: fees vary
Credit Cards	Business credit cards: fees vary	Business credit cards: fees vary
International Banking	Extensive international presence	International banking with over 60,000 partner banks
Customer Service	Below average	Excellent customer service with a dedicated business team
Fees	High fees for some services, e.g. £15 per international payment, £100 to set up an overdraft, and £1.50 for each CHAPS payment	Generally lower fees than HSBC, e.g. £10 per international payment, £50 to set up an overdraft, and no fee for CHAPS payment
Account Opening	Time-consuming and requires a lot of documentation	Time-consuming and requires a lot of documentation
Reputation	Good reputation and reliable	Good reputation and reliable
Other Services	Insurance, merchant services, and foreign exchange	Cash management and risk management

It’s important to note that these fees and costs are subject to change, so businesses should check with the banks directly for the most up-to-date information. Additionally, fees and costs may vary depending on the specific account and services selected.

Statistics

1. HSBC Data:

• HSBC operates in 64 countries and serves around 40 million customers worldwide, making it one of the largest banking and financial services organisations globally.
• As of their 2020 financial report, HSBC’s commercial banking segment reported a revenue of $13.3 billion.
• HSBC has a significant presence in Asia, particularly in Hong Kong, where it was originally founded in 1865.

2. Barclays Data:

• Barclays has a long history and was established in 1690, making it one of the oldest banking institutions in the world.
• In 2020, Barclays reported total group revenue of £21.8 billion.
• Barclays serves over 24 million customers and has around 80,000 employees worldwide.

HSBC for business banking

Pros

• International presence: HSBC is one of the largest banks in the world and has a strong international presence. This means that businesses with global operations can easily access their services in different countries.
• Business loans: HSBC offers a range of business loans, including asset finance, overdrafts, and working capital finance. They also provide business credit cards that can be useful for managing expenses.
• Digital banking: HSBC’s online banking platform is user-friendly and offers a range of features, including mobile banking, account management, and the ability to transfer funds to other accounts.

Cons

• Fees: HSBC has some of the highest fees in the industry, and this can be a significant disadvantage for small businesses or those on a tight budget.
• Customer service: HSBC’s customer service is often cited as being below average, and this can be frustrating for businesses that require quick and efficient support.
• Account opening process: HSBC’s account opening process can be time-consuming and requires a lot of documentation, which can be a hassle for businesses.

Barclays for business banking

Pros

• Business loans: Barclays offers a range of business loans, including secured and unsecured loans, overdrafts, and business credit cards. They also offer invoice financing and asset finance.
• Customer service: Barclays has excellent customer service, with a dedicated business team that can provide support and advice to businesses.
• Digital banking: Barclays’ online banking platform is user-friendly and offers a range of features, including mobile banking and the ability to manage multiple accounts.

Cons

• International presence: While Barclays has a presence in many countries, it is not as strong as HSBC’s, and businesses with global operations may find it more difficult to access their services.
• Fees: While Barclays’ fees are generally lower than HSBC’s, they still have fees that can be a burden for small businesses.
• Account opening process: Barclays’ account opening process can also be time-consuming and requires a lot of documentation, which can be a hassle for businesses.

Key differences

1. Fees: As mentioned, HSBC has higher fees than Barclays, so businesses that are sensitive to costs may find Barclays to be a more attractive option.
2. International presence: HSBC has a stronger international presence than Barclays, so businesses that require global banking services may prefer HSBC.
3. Customer service: Barclays has excellent customer service, while HSBC’s is below average, so businesses that require high levels of support may prefer Barclays.

Cost of HSBC vs Barclays

Both HSBC and Barclays have fees for their business banking services, including account maintenance, transactions, and other fees.

The costs of these services vary depending on the specific account and the business’s needs. It’s important for businesses to compare the costs of each service before making a decision.

Other considerations

When choosing between HSBC vs Barclays for business banking, it’s also important to consider factors such as reputation, reliability, and the range of services offered.

Both banks have a good reputation and are reliable, but businesses may have specific needs that require one bank over the other. It’s also worth considering the bank’s location, as this can affect accessibility and convenience.

Conclusion – HSBC vs Barclays

Choosing between HSBC and Barclays for business banking ultimately depends on a business’s individual needs and priorities.

HSBC offers a strong international presence, while Barclays has excellent customer service and lower fees. It’s important to carefully evaluate each bank’s offerings and costs to determine which one is the best fit for your business.

Additionally, it may be worth considering other banks and financial institutions as well. There are many other banks and online-only financial institutions that offer competitive rates and services specifically tailored to the needs of small and medium-sized businesses.

It’s worth taking the time to shop around and compare your options to find the best business banking solution for your specific needs.

In summary, both HSBC and Barclays offer a range of business banking services, but they have their own set of pros and cons. By evaluating these factors and considering other options, businesses can make an informed decision on which bank is the best fit for their needs.

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