Monzo vs HSBC for business banking – What’s better? Comparing features, costs, pros and cons

In today’s digital age, business owners have a wide range of options when it comes to choosing a banking partner. Two prominent players in the UK banking scene are Monzo and HSBC, each offering their own unique set of features and services.

In this article, we will compare Monzo vs HSBC for business banking, exploring the pros, cons, key differences, costs, and other important considerations for UK business owners.

Monzo vs HSBC

Features	Monzo	HSBC
Account Setup	Quick and easy online process	More time-consuming with paperwork
Digital Experience	Intuitive and user-friendly mobile app	Offers online and mobile banking, but may not be as advanced or feature-rich as Monzo
Branch Network	Limited physical branches	Extensive physical branch network
International Banking	Limited international services	Wide range of international banking services
Additional Services	Basic banking features, expense tracking, automated categorization	Comprehensive suite of financial services including business loans, trade finance, and wealth management
Account Fees	Transparent fee structure	Higher fees compared to some digital alternatives
Security	Strong security measures	Robust security measures and advanced fraud detection
Customer Support	Online support and limited in-person assistance	In-person support available at branches, but personalised service may vary
Global Presence	Primarily focused on the UK market	Extensive global presence
Account Personalization	Limited personalization options	More tailored services for larger businesses

It’s important to note that this table provides a general overview, and the specific features and offerings may vary based on the type of business account or package chosen with each bank. Business owners should carefully evaluate their unique requirements and preferences before making a decision.

Statistics

Monzo:

1. Over 5 million customers: As of 2021, Monzo had more than 5 million customers, highlighting its significant user base and popularity among individuals and businesses in the UK.
2. £50 billion+ transaction volume: Monzo’s transaction volume has exceeded £50 billion, showcasing the scale and volume of financial activity processed through the platform.
3. £113 million in funding: Monzo has raised substantial funding, with investments totaling £113 million as of its last funding round in 2020. This demonstrates investor confidence in the company and its potential for growth.

HSBC:

1. Presence in 65 countries and territories: HSBC operates in 65 countries and territories worldwide, making it one of the largest and most globally recognised banking institutions.
2. Over 38 million customers: HSBC serves more than 38 million customers worldwide, illustrating its significant customer base and widespread reach.
3. Total assets of $2.9 trillion: HSBC had total assets of $2.9 trillion as of 2021, solidifying its position as one of the largest banking institutions globally.

Monzo

Monzo is a digital bank that offers business banking services, providing a user-friendly mobile app and intuitive online platform. With a focus on simplicity, transparency, and integrated financial tools, Monzo aims to provide business owners with a streamlined and convenient banking experience.

Pros of Monzo for business banking

• User-friendly digital experience: Monzo is known for its intuitive and user-friendly mobile app, providing a seamless banking experience. Business owners can easily manage their finances, view real-time transaction data, and set up custom notifications.
• Quick and easy account setup: Setting up a business account with Monzo is a breeze. With a simple online application process, you can get your account up and running in a matter of minutes, without the need for extensive paperwork or branch visits.
• Transparent fee structure: Monzo offers transparent pricing with no hidden fees. Their simple fee structure is easy to understand, allowing business owners to budget and manage their expenses effectively.
• Integrated financial tools: Monzo provides a range of integrated financial tools, such as expense tracking and automated categorisation. These features can help business owners gain insights into their spending habits and make informed financial decisions.

Cons of Monzo for business banking

• Limited branch network: Unlike traditional banks like HSBC, Monzo operates primarily as a digital bank, with limited physical branch locations. This can be a disadvantage for businesses that require in-person support or prefer face-to-face interactions.
• Limited international reach: Monzo’s international banking capabilities are not as extensive as those of larger banks like HSBC. If your business frequently conducts international transactions or operates globally, you may find Monzo’s services somewhat limited.

HSBC

HSBC is a global bank offering comprehensive business banking services. With an extensive physical branch network and a wide range of financial solutions, HSBC caters to businesses of all sizes. From basic banking services to trade finance and wealth management, HSBC provides a diverse suite of offerings backed by robust security measures.

Pros of HSBC for business banking

• Extensive global presence: HSBC is one of the world’s largest and most established banks, with a strong global presence. This can be advantageous for businesses operating internationally, as HSBC offers a wide range of international banking services, including multi-currency accounts and global trade solutions.
• Diverse range of financial services: HSBC provides a comprehensive suite of financial services beyond basic banking, such as business loans, trade finance, cash management solutions, and wealth management. This makes HSBC a one-stop-shop for various financial needs, especially for larger businesses requiring more specialised services.
• Physical branch network: HSBC has an extensive network of physical branches across the UK and worldwide. This can be beneficial for businesses that prefer face-to-face interactions or need in-person support for complex banking needs.
• Robust security measures: As a large and established bank, HSBC invests heavily in security measures to protect its customers’ funds and data. They employ advanced encryption technologies and fraud detection systems, providing business owners with peace of mind when it comes to the security of their financial transactions.

Cons of HSBC for business banking

• Complex account setup: Compared to digital banks like Monzo, setting up a business account with HSBC can be more time-consuming and involve more paperwork. The account opening process may require multiple documents and additional steps, which can be cumbersome for business owners seeking a quick and straightforward setup.
• Higher account fees: HSBC’s business account fees tend to be higher compared to some digital banking alternatives. Depending on the specific account type and services required, businesses may face higher monthly maintenance fees, transaction charges, and additional fees for certain features or services.
• Potential for less personalised service: Due to HSBC’s large customer base, some businesses may experience less personalised customer service compared to smaller banks or digital-only counterparts. Business owners who value a more individualised and tailored banking experience might find the customer support from HSBC to be less personal.
• Limited digital experience: While HSBC offers digital banking services, their digital platform may not be as advanced or user-friendly as those provided by digital-only banks like Monzo. The online and mobile banking experience might not be as seamless or feature-rich, which could be a disadvantage for businesses that prioritise a highly intuitive and user-friendly digital interface.

Monzo vs HSBC – Key differences

1. Banking experience: Monzo offers a modern, digitally-focused banking experience, whereas HSBC combines both digital and traditional banking services. Monzo is designed for businesses that prefer a streamlined digital experience, while HSBC caters to those who value the convenience of both online and in-person banking.
2. Size and global presence: HSBC is one of the world’s largest banks, with a significant global presence and a wide range of international services. Monzo, on the other hand, is a relatively newer player in the banking industry and focuses more on the UK market.

Monzo vs HSBC – Costs and other considerations

1. Account fees: Monzo offers a range of business account plans with varying fees, including a free basic plan and premium plans with additional features. HSBC also has different pricing tiers for business banking, and the fees may vary depending on your business’s size and needs. It’s important to carefully consider the costs associated with each bank and compare them based on your specific requirements.
2. Additional services: HSBC provides a broader range of financial services beyond basic banking, including business loans, trade finance, and global cash management solutions. If your business requires a comprehensive suite of financial services, HSBC’s offerings may be more suitable.

Monzo vs HSBC – Verdict

In conclusion, both Monzo and HSBC have their own strengths and weaknesses when it comes to business banking.

Monzo excels in providing a seamless digital banking experience, while HSBC offers a more extensive range of services and a larger global footprint.

Business owners should evaluate their specific needs, preferences, and long-term goals to determine which bank aligns best with their requirements.

Consider factors such as the level of digitalization desired, international banking needs, account fees, and the additional financial services required to make an informed decision for your business’s banking partner.

Monzo vs HSBC – FAQ

Remember to consult the official websites of Monzo and HSBC or contact their customer support directly for the most up-to-date and accurate information regarding their business banking services, features, fees, and eligibility criteria.