Starling vs Barclays for business banking – Comparison of features, costs, pros and cons

When it comes to choosing a bank for your business, the options can be overwhelming. In the UK, Starling and Barclays are two popular choices that cater to the needs of businesses. Each bank offers unique features, benefits, and drawbacks. This article will compare Starling vs Barclays for business banking, highlighting the pros, cons, key differences, costs, and other important considerations to help you make an informed decision.

Starling vs Barclays

Features	Starling	Barclays
Account Types	Sole Trader, Limited Company, Partnership	Sole Trader, Limited Company, Partnership
Digital Banking Experience	User-friendly mobile app, real-time notifications, insights	Online and mobile banking available, but may not be as streamlined
Branch Network	Digital-only bank, no physical branches	Vast network of branches across the UK
International Services	Supports international payments, limited services	Wide range of international banking services, including foreign currency accounts and trade finance
Additional Services	Overdraft facilities, business loans, credit cards, invoice financing	Overdraft facilities, business loans, credit cards, invoice financing
Industry-Specific Support	May not offer specialised industry support	Offers dedicated business support and industry-specific expertise
Integration with Systems	Integrates with various accounting software and business tools	Integration capabilities available, but may require further investigation
Customer Service	Responsive customer service, 24/7 access	Support available, but responsiveness may vary
Security Measures	Two-factor authentication, encryption, fraud detection	Stringent security measures in place
Pricing and Costs	Competitive pricing, flexible plans, free basic banking for small businesses	Costs may vary, potential for higher fees compared to digital-first banks
Scalability	Scalable pricing plans, accommodates growth	Supports long-term growth, offers business lending
Reputation	Increasingly recognized, innovative digital bank	Long-standing reputation, one of the UK’s largest banks

It’s important to note that the information provided in the table is based on general observations and may not encompass all features and offerings of Starling and Barclays. It’s advisable to review the banks’ official websites or consult with their representatives to obtain the most accurate and up-to-date information for your specific business requirements.

Statistics

1. Starling:

• As of 2021, Starling Bank had over 2 million personal and business accounts.
• Starling Bank reported a revenue of £97.6 million in the fiscal year ending November 30, 2020, showcasing its growth and financial stability.
• In a survey conducted by Smart Money People in 2021, Starling Bank received an average rating of 4.8 out of 5 from business customers, reflecting high satisfaction levels.

2. Barclays:

• Barclays has a widespread presence with over 1,600 branches across the UK, making it one of the largest branch networks in the country.
• In 2020, Barclays reported a total revenue of £21.8 billion, highlighting its significant market presence and financial strength.
• Barclays has a long-standing reputation and history, dating back to 1690, giving it a solid foundation and experience in serving businesses.

Starling Bank

Starling is a leading digital-first bank in the UK, offering user-friendly mobile banking services for businesses. With a seamless online experience, real-time notifications, and competitive pricing, Starling provides businesses with efficient financial management tools and flexibility in their banking operations.

Pros of Starling for business banking

• Digital-first approach: Starling Bank is known for its user-friendly mobile banking app and seamless online experience. It offers 24/7 access to your accounts, allowing you to manage your business finances anytime, anywhere.
• Cost-effective: Starling offers competitive pricing for business accounts, including free basic banking services for small businesses. They also provide flexible pricing plans with additional features for larger businesses.
• Real-time notifications and insights: Starling’s app provides real-time notifications for transactions, helping you keep track of your business’s financial activities. It also offers useful insights and categorization of your spending, making financial management more efficient.
• Integrations and marketplace: Starling Bank integrates with various accounting software and business tools, allowing you to streamline your financial processes. The Starling Marketplace offers a range of third-party services that can be easily integrated into your business account.

Cons of Starling for business banking

• Limited branch access: Starling Bank operates as a digital-only bank, which means it lacks physical branches. If your business relies heavily on face-to-face interactions, this might be a disadvantage.
• Limited international services: While Starling Bank supports international payments, it may not offer the same level of international services and support as traditional banks like Barclays. If your business has extensive international transactions, you might need to consider this limitation.

Barclays Bank

Barclays is a renowned UK bank, catering to the diverse needs of businesses. With an extensive branch network, Barclays offers a range of business banking services, including international solutions, dedicated support, and a long-standing reputation for reliability. Their offerings encompass traditional and digital banking options, providing businesses with comprehensive financial support.

Pros of Barclays for business banking

• Extensive branch network: Barclays has a vast network of branches across the UK, making it convenient for businesses that prefer in-person banking. The branch presence also facilitates cash deposits and other services that require physical interactions.
• International banking services: Barclays offers a wide range of international services, including foreign currency accounts, international payments, and trade finance solutions. If your business operates globally, these services can be beneficial.
• Dedicated business support: Barclays provides specialized support and advice for businesses. Their business advisors can help you with various aspects of your business, including funding, growth strategies, and international expansion.
• Established reputation: As one of the UK’s largest banks, Barclays has a long-standing reputation and history of serving businesses. This can instill confidence and trust in potential clients or partners.

Cons of Barclays for business banking

• Potentially higher costs: Barclays business banking services may come with higher fees compared to digital-first banks like Starling. It’s important to carefully consider the costs and features associated with your specific business needs.
• Less streamlined digital experience: While Barclays offers online and mobile banking, its digital platform may not be as intuitive or feature-rich as Starling’s. If you prefer a seamless digital banking experience, this might be a drawback.

Starling vs Barclays – Key differences and considerations

• Account types: Both Starling and Barclays offer a range of business account options, including sole trader accounts, limited company accounts, and partnerships. Compare the features and requirements of each account type to determine which aligns best with your business needs.
• Additional services: Consider the additional services and features offered by each bank. This could include overdraft facilities, business loans, credit cards, and invoice financing. Evaluate your business’s specific requirements and the availability of these services.
• Industry-specific support: Look into whether Starling or Barclays offers tailored support or specialized solutions for your particular industry. Some banks may have expertise in certain sectors, providing industry-specific guidance and resources that can be valuable for your business.
• Customer service: Assess the quality of customer service provided by each bank. Consider factors such as response times, accessibility, and the availability of dedicated business support teams. Reliable and responsive customer service can be crucial when you encounter issues or need assistance with your business banking.
• Integration with existing systems: If your business already uses specific accounting software, payment gateways, or other financial tools, check if Starling or Barclays integrates smoothly with your existing systems. Seamless integration can save you time and effort in managing your financial operations.
• Security measures: Security is of paramount importance when it comes to business banking. Research the security measures implemented by both banks, such as two-factor authentication, encryption, and fraud detection systems. Ensure that the bank you choose prioritizes the protection of your business’s financial data and transactions.
• Future scalability: Consider the long-term growth potential of your business and assess whether the bank’s offerings can support your evolving needs. Look for features like scalable pricing plans, access to business lending, and the ability to accommodate increasing transaction volumes.
• Reviews and reputation: Seek out reviews and opinions from other businesses that have used Starling or Barclays for their banking needs. Online forums, business communities, and testimonials can provide valuable insights into the experiences of other business owners and help you gauge the overall reputation of each bank.

Starling vs Barclays – Costs and pricing

In terms of costs, both Starling and Barclays offer a range of pricing options depending on the size and requirements of your business. It’s important to carefully review the fee structures, transaction charges, and any additional costs associated with specific services or account features. Consider your business’s financial activity, transaction volumes, and projected growth when evaluating the affordability of each bank’s offerings.

Starling vs Barclays – Verdict

Ultimately, the choice between Starling and Barclays for your business banking needs depends on your unique circumstances, preferences, and priorities.

Consider the pros, cons, key differences, costs, and other considerations outlined in this article to make an informed decision that aligns with the specific requirements and goals of your business.

Remember to evaluate your banking needs periodically as your business evolves to ensure that your chosen bank continues to meet your expectations and supports your financial success.

Starling vs Barclays – FAQ

Remember to conduct thorough research, read customer reviews, and consider your business’s specific requirements when making a decision between Starling and Barclays for your business banking needs.