Metro Bank vs Monzo for business banking – Choosing between features, fees, pros and cons

When it comes to business banking in the UK, Metro Bank and Monzo have emerged as two popular choices among entrepreneurs and small business owners. Both banks offer innovative digital solutions with user-friendly interfaces, catering to the evolving needs of modern businesses.

However, there are several key differences between the two. In this article, we will compare Metro Bank vs Monzo, highlighting their pros, cons, costs, and other important considerations to help you make an informed decision for your business banking needs.

Metro Bank vs Monzo

Features	Metro Bank	Monzo
Branch Network	Extensive branch network with extended opening hours, offering in-person services, cash deposits, and specialised support.	Primarily digital bank with limited branch access.
Account Options	A range of business accounts tailored to different types of enterprises, with features like integrated accounting software, dedicated relationship managers, and free electronic transactions.	Business account suitable for smaller enterprises/startups, with user-friendly mobile app and real-time notifications.
Digital Features	Online and mobile banking available, but digital features may not be as advanced as some competitors.	Intuitive and user-friendly mobile app with real-time notifications, spending categorization, and integration with popular accounting software.
Charges and Fees	Various charges and fees for transactions, cash deposits, and additional services. Fee structure should be reviewed carefully.	Transparent pricing model with no monthly fees. Charges for specific services such as cash deposits and international transfers.
Overdrafts and Credit	Offers overdraft facilities and credit options for businesses.	Does not currently offer overdrafts or credit facilities for business accounts.
Customer Support	In-person customer support available at branches, with specialised assistance.	Customer support primarily through app and online channels, with limited phone support.
Business Tools and Integrations	Focuses on core banking services.	Integrates with various third-party tools and platforms to enhance business processes.
Reputation and Stability	Established presence since 2010, with a strong branch network.	Gained popularity as a newer player with user-friendly app and innovative approach to banking.
Regulatory Protection	Authorised and regulated by the Financial Conduct Authority (FCA) and participants in the Financial Services Compensation Scheme (FSCS).	Authorised and regulated by the Financial Conduct Authority (FCA) and participants in the Financial Services Compensation Scheme (FSCS).

Please note that the information provided in the table is based on general knowledge and may be subject to change. It’s recommended to visit the respective bank’s websites or contact their representatives for the most up-to-date and detailed information regarding their business banking offerings.

Statistics

1. Metro Bank:

• As of 2021, Metro Bank had a network of over 70 branches across the UK, offering face-to-face banking services to its customers.
• Metro Bank reported having over 2 million customer accounts as of 2021, comprising a mix of personal and business accounts.
• In 2020, Metro Bank reported total assets of approximately £21.9 billion, highlighting its substantial presence in the UK banking sector.

2. Monzo:

• As of 2021, Monzo had over 5 million customers, comprising both personal and business account holders, demonstrating its growing popularity in the UK market.
• Monzo has processed billions of pounds in transactions since its inception. In 2020 alone, the bank reported processing more than £54 billion in payments, showcasing its role as a significant player in the digital banking space.
• Monzo has raised substantial funding through various investment rounds. As of 2021, the company had raised over £350 million in total funding, indicating investor confidence in its business model and growth potential.

Pros of Metro Bank

• Branch network: Metro Bank boasts a substantial branch network, which can be advantageous if you prefer face-to-face interactions. With extended opening hours, including weekends, their branches offer a wide range of services, including instant card issuance and cash deposits. This can be particularly beneficial for businesses dealing with a significant amount of cash or requiring specialised support.
• Account options: Metro Bank provides a variety of business account options, tailored to different types of enterprises, from sole traders to larger corporations. Their accounts come with a range of features, such as integrated accounting software, dedicated relationship managers, and free electronic transactions. Additionally, Metro Bank offers a comprehensive suite of business services, including loans, overdrafts, and merchant services.
• Local focus: With its emphasis on local communities, Metro Bank aims to build strong relationships with businesses in the areas they serve. This localised approach can translate into personalised support, localised marketing initiatives, and a deep understanding of regional business dynamics.

Cons of Metro Bank

• Limited digital features: While Metro Bank offers online and mobile banking, their digital features are not as advanced as some of their competitors. For businesses seeking seamless digital integration and extensive app functionalities, Metro Bank may fall short of expectations.
• Charges and fees: Metro Bank’s business banking services come with various charges and fees, which can be a drawback for businesses looking to minimise costs. Charges may apply for certain transactions, cash deposits, and additional services, so it is crucial to review the fee structure carefully before committing.

Pros of Monzo

• Digital-first approach: Monzo excels in providing a user-friendly, app-based banking experience. Their intuitive mobile app offers robust features for managing business finances, including real-time notifications, spending categorization, and integration with popular accounting software. Monzo’s streamlined digital experience can save time and provide valuable insights into your business’s financial health.
• Transparent pricing: Monzo operates on a transparent pricing model, with no monthly fees for their business account. Instead, they charge for specific services, such as cash deposits and international transfers, making it easier for businesses to understand and control their banking costs.
• Integration and automation: Monzo integrates seamlessly with various third-party tools and platforms, allowing businesses to automate financial processes. This can streamline accounting, invoicing, and payment workflows, saving valuable time and reducing manual errors.

Cons of Monzo

• Limited branch access: Unlike Metro Bank, Monzo operates primarily as a digital bank, with limited branch access. If your business requires in-person assistance or frequently deals with cash, the lack of physical branches may pose a challenge.
• Business-specific features: While Monzo offers business banking services, their offerings may be more suitable for smaller enterprises or startups. Larger businesses with more complex banking needs might find some of Monzo’s features and services insufficient.

Metro Bank vs Monzo – Key differences and other factors

Overdrafts and credit

Metro Bank provides overdraft facilities and credit options for businesses, which can be advantageous for managing cash flow and accessing additional funds. Monzo, on the other hand, does not currently offer overdrafts or credit facilities for business accounts.

This is an important consideration for businesses that anticipate the need for short-term borrowing or credit lines.

Customer support

Metro Bank’s branch network allows for in-person customer support, which can be beneficial for businesses that prefer face-to-face interactions or require specialised assistance.

Monzo, on the other hand, offers customer support primarily through their app and online channels, with limited phone support.

Consider your business’s preferences and the level of support you may require when evaluating these options.

Business tools and integrations

While both banks offer digital banking solutions, their available tools and integrations differ. Metro Bank focuses on providing core banking services, while Monzo integrates with various third-party tools and platforms to enhance business processes.

Consider your business’s specific needs and the compatibility of these tools with your existing systems when making a decision.

Reputation and stability

Metro Bank has been operating in the UK since 2010 and has established a strong presence with its branch network. Monzo, although a relatively newer player, has gained popularity for its user-friendly app and innovative approach to banking. Consider the reputation and stability of each bank when assessing their suitability for your business banking needs.

Regulatory protection

Both Metro Bank and Monzo are authorised and regulated by the Financial Conduct Authority (FCA) and are participants in the Financial Services Compensation Scheme (FSCS).

This provides a level of protection for deposits up to a certain limit. It is essential to review the specific terms and conditions of each bank’s regulatory protection to understand the extent of coverage for your business funds.

Metro Bank vs Monzo – Cost considerations

The costs associated with business banking services vary between Metro Bank and Monzo.

Metro Bank may charge fees for certain transactions, account maintenance, and additional services, so it is crucial to assess the fee structure based on your business’s expected banking activities.

Monzo, on the other hand, operates with a more transparent pricing model, where charges are specific to individual services.

It is advisable to review and compare the fee structures of both banks in detail, considering factors such as transaction volumes, cash handling requirements, and international payment needs. Assessing your business’s banking patterns and cost sensitivities will help you determine which bank offers the most cost-effective solution.

Metro Bank vs Monzo – Verdict

In conclusion, Metro Bank and Monzo offer distinct advantages and considerations for business banking in the UK.

Metro Bank’s branch network, account options, and localised approach may appeal to businesses seeking personalised support and a physical banking presence.

Monzo’s digital-first approach, transparent pricing, and integration capabilities make it an attractive choice for businesses prioritizing convenience, automation, and cost transparency.

Ultimately, the decision between Metro Bank and Monzo will depend on your business’s unique needs, preferences, and priorities. It is recommended to explore further by speaking with representatives from each bank to make an informed decision that aligns with your business goals.

Metro Bank vs Monzo – FAQ

Please note that the answers provided above are general and based on common queries. For specific and up-to-date information, it is advisable to visit the respective bank’s website or contact their customer support directly.