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

As the banking landscape evolves and technology reshapes the way we handle finances, businesses now have access to a wider range of banking options than ever before. Two prominent players in the UK market are HSBC and Revolut. In this article, we’ll compare the pros, cons, key differences, costs, and other considerations of using HSBC vs Revolut for business banking.

HSBC vs Revolut

Features	HSBC	Revolut
Account Opening Process	Traditional, requires extensive paperwork	Digital, streamlined onboarding process
International Transactions	Facilitates international payments	Competitive exchange rates, low fees for currency conversions
Integration with Third-Party	Offers a wide range of integrations with accounting	Limited integrations but growing ecosystem
Services	software, payroll services, etc.
Customer Support	Multiple channels including phone and branch visits	In-app chat support primarily
Fees and Charges	Generally higher fees compared to Revolut	Competitive pricing, various plans available
Branch Access	Extensive network of branches and ATMs	Primarily digital, limited in-person services
Risk and Stability	Established reputation and global presence	Perception of higher risk due to innovative nature
Scalability and Growth	Suitable for larger and more complex businesses	Agile platform, ideal for startups and small businesses
Mobile App Experience	Traditional banking app interface	User-friendly, real-time notifications

Please note that this table provides a general overview and it’s important to review the specific features and terms of each bank’s business banking offerings before making a final decision.

Statistics

1. HSBC:

• Global presence: HSBC serves over 40 million customers in 64 countries and territories worldwide, making it one of the largest and most globally recognised banking institutions.
• Business services: HSBC provides a wide range of business services, including banking, trade finance, cash management, lending, and international services to support businesses of all sizes and industries.
• Digital transformation: HSBC has been investing heavily in digital transformation initiatives to enhance its digital offerings and improve customer experience, aiming to meet the evolving needs of businesses in the digital age.

2. Revolut:

• Rapid growth: As of 2021, Revolut had more than 16 million personal customers and over 500,000 business customers. The company’s rapid growth and increasing popularity demonstrate its success as a digital disruptor in the financial services industry.
• Multi-currency accounts: Revolut’s business accounts support over 28 currencies, allowing businesses to hold and transact in multiple currencies without incurring traditional banking fees for currency conversions.
• Funding and valuation: Revolut has raised substantial funding, with its latest funding round in 2021 raising $800 million, valuing the company at $33 billion. This highlights investor confidence in Revolut’s business model and potential.

HSBC – A traditional banking giant

HSBC is one of the largest and most well-established banks globally, with a significant presence in the UK. Here are some key factors to consider when choosing HSBC for your business banking needs:

Pros:

• Reputation and stability: HSBC’s long-standing history and global reputation can provide a sense of security for businesses.
• Wide range of services: HSBC offers a comprehensive suite of business banking services, including accounts, loans, credit cards, and trade finance.
• Extensive network: With numerous branches and ATMs across the UK and globally, accessing in-person services is convenient.

Cons:

• Stringent requirements: HSBC typically has stricter eligibility criteria and documentation requirements, making the account opening process more time-consuming.
• High fees: Compared to some new digital players, HSBC’s fees and charges can be relatively higher, especially for certain transactions or international services.
• Less agility: Traditional banks like HSBC may have slower response times and less agile customer support compared to digital-native competitors.

Revolut – The fintech disruptor

Revolut is a digital challenger that has rapidly gained popularity among individuals and businesses alike. Here’s what you need to know about Revolut as a business banking option:

Pros:

• Agility and speed: Revolut’s technology-driven platform offers fast and efficient services, with real-time notifications and easy-to-use mobile apps.
• Competitive pricing: Revolut often offers more competitive exchange rates and lower transaction fees compared to traditional banks, which can benefit businesses with significant international dealings.
• Innovative features: Revolut offers various features such as expense management, multi-currency accounts, and integration with popular accounting software.

Cons:

• Limited branch access: Revolut operates primarily as a digital-only bank, so businesses that require in-person banking services may find this limitation inconvenient.
• Regulatory concerns: As a fintech disruptor, Revolut has faced scrutiny from regulators regarding compliance and risk management. While they have made efforts to address these concerns, some businesses may prefer the stability of a traditional bank.
• Scalability challenges: While Revolut’s offerings are expanding, they may not yet provide the full range of services that larger or more complex businesses require.

HSBC vs Revolut – Key differences

1. Account opening process: HSBC generally follows a more traditional approach with extensive paperwork, while Revolut offers a streamlined digital onboarding process, allowing businesses to get started quickly.
2. International transactions: Both HSBC and Revolut facilitate international payments, but Revolut’s competitive exchange rates and low fees can be especially appealing for businesses with frequent cross-border transactions.
3. Integration and third-party services: HSBC often offers a wider range of integrations with accounting software, payroll services, and other business tools, catering to the needs of more established companies.
4. Customer support: HSBC provides customer support through multiple channels, including phone and branch visits, whereas Revolut offers support primarily through in-app chat, which may not suit all businesses’ preferences.

HSBC vs Revolut – Costs and fees

HSBC’s fee structure varies depending on the type of account and transaction, but generally, they have higher fees compared to Revolut.

Revolut offers a range of pricing plans tailored to different business sizes and needs, including free and subscription-based plans for enhanced features and services.

It’s important for businesses to carefully review and compare the fees associated with their specific banking requirements to make an informed decision.

HSBC vs Revolut – Other considerations

1. Risk appetite: Traditional banks like HSBC are often seen as more stable, while fintech companies like Revolut may be perceived as riskier due to their innovative nature. Assessing your risk tolerance and the level of stability required for your business is crucial.
2. Business size and complexity: The size and complexity of your business operations play a role in selecting the right banking partner. HSBC’s extensive range of services and global network may better suit larger and more complex enterprises, while Revolut’s agile platform may be more suitable for startups or small businesses.
3. Future growth and expansion: Consider your business’s future plans for growth and expansion. HSBC’s global presence can facilitate international business ventures, while Revolut’s focus on digital innovation may align with businesses aiming for rapid scalability and ease of use.

HSBC vs Revolut – Verdict

In conclusion, choosing between HSBC and Revolut for business banking depends on various factors specific to your business’s needs, preferences, and long-term goals.

HSBC offers stability, a wide range of services, and an extensive network, but comes with stricter requirements and higher fees.

On the other hand, Revolut offers agility, competitive pricing, and innovative features, but may have limitations in terms of branch access and service offerings.

Carefully evaluate the pros, cons, key differences, costs, and other considerations to select the banking partner that best aligns with your business requirements and aspirations.

HSBC vs Revolut – FAQ

It’s important to conduct thorough research, consider your specific business needs, and compare the offerings and terms of HSBC and Revolut to make an informed decision based on your unique requirements.