Starling vs HSBC for business banking – Comparing features, fees, pros and cons

When it comes to business banking in the UK, choosing the right provider is a crucial decision. Two prominent players in this space are Starling and HSBC, each offering unique features and benefits for business owners. In this article, we will delve into a detailed comparison of Starling vs HSBC, exploring their pros, cons, key differences, costs, and other essential considerations.

Starling vs HSBC

Features	Starling Bank	HSBC
Digital Banking	✓ Highly user-friendly mobile and web app	✗ Traditional approach with limited digital capabilities
Account Setup	✓ Quick and easy online account opening	✗ Time-consuming process, may require in-person visits
Physical Presence	✗ Limited branch network	✓ Vast network of branches and ATMs
Pricing Structure	✓ Competitive fees, including free basic account	✗ Higher fees, charges based on transaction volumes
Lending Options	✓ Limited lending products	✓ Comprehensive range of lending options
Integrations and Ecosystem	✓ Integrations with accounting software and third-party apps	✗ Limited integration options
Global Banking Services	✗ Limited international banking services	✓ Wide range of international banking solutions
Customer Support	✓ Responsive support channels	✓ Dedicated account managers
Security and Compliance	✓ Strong security measures and compliance	✓ Stringent security protocols and compliance
Scalability	✓ Suitable for small to medium-sized businesses	✓ Comprehensive services for businesses of all sizes

Note: The table provides a general overview and may not capture every feature or difference between the two banks. It’s recommended to refer to the respective bank’s websites or contact their customer support for the most up-to-date and detailed information.

Statistics

Starling Bank:

1. Over 3 million customers: As of 2021, Starling Bank has acquired a customer base of over 3 million individuals and businesses, showcasing its popularity and growth in the UK banking sector.
2. £1.9 billion in loans to SMEs: Starling Bank has provided over £1.9 billion in loans to small and medium-sized enterprises (SMEs), supporting their growth and financial needs.
3. 4.8/5 Trustpilot rating: Starling Bank has received an impressive average rating of 4.8 out of 5 on Trustpilot, reflecting high customer satisfaction and positive user experiences with the platform.

HSBC:

1. Global presence in 64 countries and territories: HSBC operates in 64 countries and territories worldwide, making it a truly global bank with extensive reach and international banking capabilities.
2. More than 39 million customers globally: HSBC serves a vast customer base of over 39 million individuals and businesses worldwide, highlighting its significant presence in the banking industry.
3. £12 billion in small business lending in the UK: HSBC has provided approximately £12 billion in lending to small businesses in the UK, demonstrating its commitment to supporting the growth and development of SMEs.

Starling Bank

Starling is a leading digital bank in the UK, offering convenient and intuitive mobile and web-based banking solutions. With a strong focus on user experience, competitive pricing, and a range of integrations, Starling provides business owners with seamless financial management and access to a growing ecosystem of services.

Pros of Starling for business banking

• Digital-first approach: Starling Bank is a modern, app-based bank that places a strong emphasis on digital convenience. Its intuitive mobile and web interfaces make it easy to manage your business finances on the go.
• Quick and easy account setup: Starling allows for a seamless account opening process, which can be completed entirely online. This is particularly beneficial for entrepreneurs looking for a hassle-free onboarding experience.
• Competitive fees: Starling offers attractive pricing structures, including free basic business accounts and competitive transaction fees. This makes it a cost-effective option for small and medium-sized enterprises (SMEs) with lower transaction volumes.
• Integrations and ecosystem: Starling provides a range of integrations with accounting software and third-party apps, enabling efficient financial management. Additionally, its Marketplace feature allows businesses to access various business services and tools from within the app.

Cons of Starling for business banking

• Limited physical presence: Starling primarily operates as a digital bank, which means it has fewer physical branches compared to traditional banks like HSBC. This can be a drawback for businesses that prefer in-person banking or need access to specialised services.
• Limited lending options: While Starling does offer lending products such as business loans, its options may be more limited compared to larger banks like HSBC. Businesses with complex financing needs may find HSBC’s range of lending solutions more comprehensive.

HSBC

HSBC is a prominent global bank with a vast presence in the UK. It offers a comprehensive suite of business banking services, including lending options, international banking solutions, and specialised advisory services. With a reputation for stability and a wide network of branches, HSBC provides businesses with access to diverse financial solutions and support for their growth ambitions.

Pros of HSBC for business banking

• Extensive physical presence: HSBC boasts a vast network of branches and ATMs across the UK, making it convenient for businesses that value in-person support and access to banking facilities.
• Wide range of services: HSBC offers a comprehensive suite of business banking services, including various lending options, international banking solutions, trade finance, and specialised advisory services. This makes it a suitable choice for businesses with diverse needs and global ambitions.
• Established reputation: HSBC has a long-standing reputation as a trusted and globally recognised bank. This can provide businesses with a sense of stability and reliability when choosing a banking partner.

Cons of HSBC for business banking

• Higher fees: HSBC’s fees and charges may be higher compared to newer digital banks like Starling. Businesses with lower transaction volumes or startups on a tight budget might find the cost structure less favorable.
• Complex account opening process: HSBC’s account opening process can be more time-consuming and require in-person visits to the branch, which may be inconvenient for some business owners.
• Limited digital capabilities: Although HSBC has made strides in its digital offerings, it may not match the seamless user experience and breadth of integrations provided by digital-first banks like Starling.

Starling vs HSBC – Key differences

Technology and user experience

Starling excels in providing a modern, user-friendly digital experience, while HSBC leans more towards a traditional banking approach with a wider physical presence.

Pricing structure

Starling generally offers lower fees and competitive rates compared to HSBC. However, HSBC’s broader range of services may justify the higher costs for businesses requiring specialised financial solutions.

Business support and ecosystem

Starling’s ecosystem focuses on integrating with various business tools and services, making it a hub for managing different aspects of your business. On the other hand, HSBC’s extensive network and established reputation provide businesses with access to a wide range of advisory services and global banking expertise.

Starling vs HSBC – Costs and pricing

Starling Bank charges and fees

Starling offers a free basic business account with no monthly fees. Transaction fees are competitive, with free inbound and outbound transfers in GBP and low fees for international transfers. Additional services, such as foreign currency accounts or premium business accounts, may have associated costs.

HSBC charges and fees

HSBC’s pricing structure varies depending on the type of account and business requirements. While some basic accounts may have no monthly fees, others may have charges based on transaction volumes, cash handling, or international transfers. Specialised services and lending products will have their own pricing structures.

Starling vs HSBC – Other considerations

Business needs

Consider your specific business requirements and growth plans. If you value digital convenience and streamlined processes, Starling may be the right fit. However, if you require a comprehensive suite of services, global banking capabilities, and in-person support, HSBC might be a better choice.

Customer support

Evaluate the level of customer support and availability that each bank offers. This includes factors such as dedicated account managers, support channels, and response times.

Security and compliance

Both Starling and HSBC adhere to rigorous security measures and comply with regulatory standards. However, it’s essential to review their security protocols, encryption technologies, and fraud protection features to ensure the safety of your business finances.

Future scalability

Consider the long-term scalability and flexibility of the banking services provided. Assess whether the bank can accommodate your business’s evolving needs as it grows.

Starling vs HSBC – Verdict

In conclusion, choosing between Starling and HSBC for business banking depends on your specific requirements, preferences, and growth plans. Starling offers a digital-first approach, competitive pricing, and a streamlined user experience.

On the other hand, HSBC provides an extensive physical presence, a wide range of services, and global banking capabilities.

Assess your business needs, costs, and other considerations to make an informed decision that aligns with your company’s financial goals and aspirations.

Starling vs HSBC – FAQ

Remember to visit the official websites of Starling and HSBC or contact their customer support for the most accurate and up-to-date information regarding their business banking services.