Monzo vs NatWest for business banking – What’s best? Features, fees, pros and cons compared

Choosing the right banking partner is a critical decision for any business. In the United Kingdom, where a variety of banking options are available, two prominent players, Monzo and NatWest, have emerged as popular choices for business banking services.

In this article, we will compare Monzo vs NatWest, exploring their pros, cons, key differences, costs, and other important considerations to help UK businesses make an informed decision.

Monzo vs NatWest

Features	Monzo Business Banking	NatWest Business Banking
User-Friendly Experience	Intuitive mobile app with real-time notifications	Online and mobile banking platforms
Account Setup	Quick and straightforward process	More extensive application and verification requirements
Physical Branch Network	No physical branches	Extensive network of physical branches across the UK
Additional Services	Limited range of specialised services	Comprehensive suite of services including merchant services, insurance options, and specialised lending
Integration with Software	Integrations available with accounting software like Xero	Integrations may be available, but not as extensive as digital-native banks
Lending Options	Limited lending options compared to traditional banks	Wide range of lending products and specialised financing options
Customer Support	Primarily app-based support and online chat	Access to dedicated relationship managers and personalised assistance
Innovation and Features	Innovative features like instant transfers and automated categorization	May have fewer cutting-edge features and integrations
Reputation and History	Relatively new player in the banking industry	Established reputation and extensive experience serving businesses
Cost and Fees	Varying fee structures based on account type and services	Varying fee structures based on account type and services

Remember, this table provides a general overview, and it’s important to conduct thorough research and consider your specific business needs when making a decision.

Statistics

1. Monzo:

• As of 2021, Monzo had over 5 million customers, including both personal and business account holders.
• Monzo raised approximately £500 million in funding as of 2021, reflecting investor confidence in its business model and growth potential.
• Monzo reported a revenue of £67.2 million for the financial year ending February 2020, indicating its growing market presence and revenue generation.

2. NatWest:

• NatWest serves around 14 million customers in the UK, including personal and business account holders.
• In 2020, NatWest provided over £12 billion in lending to UK businesses, supporting their growth and financing needs.
• NatWest has a network of approximately 600 physical branches across the UK, offering in-person banking services to its customers.

Monzo

Pros of Monzo business banking

• User-friendly digital experience: Monzo is renowned for its intuitive and user-friendly mobile app, offering real-time notifications, smart budgeting features, and easy expense tracking. Their user interface is designed with simplicity in mind, making it convenient for businesses to manage their finances on the go.
• Streamlined account setup: Opening a business account with Monzo is quick and straightforward, often requiring just a few minutes to complete the process. This can be especially appealing to small businesses and startups seeking hassle-free account setup.
• Innovative features and integrations: Monzo provides various integrations with accounting software such as Xero and FreeAgent, allowing businesses to sync their financial data seamlessly. Additionally, Monzo offers features like instant transfers, automated categorisation of transactions, and easy bill splitting, making financial management more efficient.

Cons of Monzo business banking

• Limited physical presence: While Monzo is primarily a digital bank, it may not be suitable for businesses that rely heavily on in-person banking services. Monzo does not have physical branches, which can be a disadvantage if face-to-face interactions or cash transactions are important to your business.
• Restricted lending options: Monzo’s lending products for businesses are still relatively limited compared to traditional banks like NatWest. If your business requires substantial financing or more specialised lending solutions, Monzo may not be the best fit.

NatWest

Pros of NatWest business banking

• Extensive physical branch network: NatWest boasts a vast network of physical branches across the UK, providing businesses with convenient access to in-person banking services. This can be advantageous for businesses that prefer face-to-face interactions or require cash-handling capabilities.
• Established reputation and experience: As one of the largest and oldest banks in the UK, NatWest has built a strong reputation for serving businesses. Their extensive experience in the industry can provide a sense of stability and trust for businesses seeking a well-established banking partner.
• Comprehensive range of services: NatWest offers a wide range of additional services beyond basic banking, including merchant services, insurance options, and specialised lending products. This can be beneficial for businesses that require a one-stop-shop for various financial needs.

Cons of NatWest business banking

• Complex account setup: Opening a business account with NatWest may involve a more extensive application process compared to digital-first banks like Monzo. The documentation and verification requirements can be more time-consuming, which may not be ideal for businesses seeking a quick and hassle-free account setup.
• Less intuitive digital experience: While NatWest provides online and mobile banking options, their digital platforms may not be as user-friendly or intuitive as those offered by digital-native banks like Monzo. This could impact businesses that prioritise a streamlined and modern digital banking experience.
• Limited innovation and integrations: As a traditional bank, NatWest may have fewer innovative features and integrations compared to fintech-focused institutions like Monzo. Businesses that rely heavily on cutting-edge technology solutions or seamless integrations with accounting software may find NatWest’s offerings less advanced.

Monzo vs NatWest – Key differences

1. Branch network: NatWest has an extensive network of physical branches across the UK, providing businesses with easy access to in-person banking services. On the other hand, Monzo operates solely through its digital platform, which may be advantageous for businesses that prefer online banking convenience.
2. Established reputation: NatWest, being one of the largest and oldest banks in the UK, has an established reputation and a long history of serving businesses. Monzo, while rapidly growing in popularity, is still a relatively new player in the banking industry. The choice between the two may depend on your preference for a more established institution versus a newer, innovative approach.

Monzo vs NatWest – Costs and fees

Both Monzo and NatWest offer different pricing structures depending on the type of business account and the level of services required.

It is crucial to carefully review the fee structures, including account maintenance fees, transaction charges, and any additional charges for services like international payments or cash deposits, to determine the most cost-effective option for your business.

Monzo vs NatWest – Other considerations

1. Customer support: NatWest provides access to dedicated relationship managers for business customers, offering personalised assistance and advice. Monzo, on the other hand, offers customer support primarily through their app and online chat. Consider your business’s support needs and communication preferences when evaluating these options.
2. Additional services: Beyond basic banking services, NatWest offers a comprehensive range of business solutions, including merchant services, insurance, and specialised lending options. If your business requires a one-stop-shop for various financial services, NatWest may have the edge over Monzo.

Monzo vs NatWest – Verdict

In conclusion, choosing between Monzo and NatWest for business banking depends on your specific needs and preferences. Monzo excels in its user-friendly digital experience and innovative features, while NatWest offers a broader range of traditional banking services and a physical branch network. Assessing factors such as account setup, costs, customer support, and additional services will help determine which option aligns best with your business requirements.

For tech-savvy businesses that prioritise a seamless digital experience and value convenience, Monzo’s user-friendly app and streamlined account setup can be a significant advantage. The ability to integrate with popular accounting software and access innovative features tailored to financial management can enhance operational efficiency.

On the other hand, if your business relies on in-person banking services or prefers a well-established institution with a broad physical branch network, NatWest’s extensive presence across the UK may be more appealing. The availability of dedicated relationship managers can provide personalised support and guidance for your business’s financial needs.

Monzo vs NatWest – FAQ

Remember to conduct thorough research, review the latest offerings from both banks, and consider your specific business requirements to make an informed decision about which bank is the best fit for your business banking needs.