Starling Bank vs Monzo for business banking – Pros, cons, key differences, costs and considerations

When it comes to choosing a bank for your business, the options are many, but the competition between Starling Bank vs Monzo has been particularly fierce in the UK market.

Both banks offer a range of features that can help you manage your finances more effectively, but there are some key differences between the two.

Here, we take a closer look at Starling Bank versus Monzo for business banking, including the pros, cons, costs, and considerations to help you make an informed decision.

Starling Bank vs Monzo

Feature	Starling Bank	Monzo
Monthly Fees	None	None
Cash Deposits	Free up to £1,000 per month	Free up to £1,000 per month
Foreign Currency	Yes	Yes
Lending Options	Business loans and overdrafts available	Business loans and overdrafts available
Account Manager	Yes, a dedicated account manager	No, customer support teams only
Overdraft Interest Rate	15% EAR variable	19%/29%/39% EAR variable depending on usage
Payment Notifications	Yes	Yes
Mobile App	iOS and Android	iOS and Android
Customer Support	24/7 support via app and phone	24/7 support via app and phone

Please note that this is not an exhaustive list and that both banks offer additional features that are not listed here. It’s important to consider your business’s specific needs when comparing the two banks.

Statistics

1. Starling Bank:

• As of September 2021, Starling Bank reported having over 2 million personal and business accounts
• In 2020, Starling Bank was named the Best British Bank and Best Business Banking Provider at the British Bank Awards.
• Starling Bank reported a customer satisfaction rating of 4.5 out of 5 based on over 100,000 reviews on Trustpilot.

2. Monzo:

• As of September 2021, Monzo reported having over 5 million customers in the UK.
• In 2020, Monzo was ranked as the most recommended bank by customers in the UK, according to a survey conducted by the Competition and Markets Authority.
• Monzo reported a customer satisfaction rating of 4.5 out of 5 based on over 100,000 reviews on Trustpilot.

Pros and cons of Starling Bank for business banking

Starling Bank is an online-only bank that offers a range of business banking services, including current accounts, loans, and overdrafts. Here are some of the pros and cons of using Starling Bank for your business:

Pros:

• Easy-to-use mobile app: Starling Bank’s app is easy to navigate, and it offers a range of features that can help you manage your finances more effectively. You can set up multiple accounts, categorize your transactions, and get real-time notifications.
• Competitive fees: Starling Bank’s fees are generally lower than those of traditional banks, and there are no monthly account fees or charges for cash deposits.
• Quick setup: You can open a business account with Starling Bank in just a few minutes, and there are no minimum deposit requirements.
• Personalised customer service: Starling Bank’s customer service is available 24/7, and you can speak to a real person within minutes. They also offer a dedicated account manager for business customers.

Cons:

• Limited physical presence: Starling Bank is an online-only bank, so you won’t have access to any physical branches. This could be an issue if you need to deposit cash or speak to someone in person.
• Limited lending options: While Starling Bank offers loans and overdrafts, their lending options are limited compared to traditional banks.
• No foreign currency accounts: If your business operates internationally, you’ll need to use another bank for foreign currency accounts.

Pros and cons of Monzo for business banking

Monzo is another online-only bank that has gained popularity in the UK market. Here are some of the pros and cons of using Monzo for your business:

Pros:

• Easy-to-use mobile app: Monzo’s app is similar to Starling Bank’s, and it offers a range of features that can help you manage your finances more effectively. You can set up multiple accounts, categorize your transactions, and get real-time notifications.
• Low fees: Monzo’s fees are generally lower than those of traditional banks, and there are no monthly account fees or charges for cash deposits.
• Quick setup: You can open a business account with Monzo in just a few minutes, and there are no minimum deposit requirements.
• International payments: Monzo allows you to make international payments and manage foreign currency accounts.

Cons:

• Limited physical presence: Like Starling Bank, Monzo is an online-only bank, so you won’t have access to any physical branches.
• Limited lending options: Monzo’s lending options are also limited compared to traditional banks.
• No dedicated account manager: While Monzo offers customer support, there is no dedicated account manager for business customers.

Key Differences between Starling Bank vs Monzo for business banking

While there are similarities between Starling Bank and Monzo, there are some key differences to be aware of:

• Physical presence: Starling Bank and Monzo are both online-only banks, but Starling Bank has partnered with the Post Office to allow customers to deposit cash and cheques.
• Lending options: While both banks offer loans and overdrafts, Starling Bank has a more extensive lending portfolio.
• Customer support: Starling Bank offers a dedicated account manager for business customers, while Monzo does not.

Costs

When it comes to costs, both Starling Bank and Monzo are generally cheaper than traditional banks.

Neither bank charges monthly fees for their business accounts, and they both offer fee-free cash deposits up to a certain amount.

However, it’s worth noting that some services may incur fees, such as international payments or cash withdrawals beyond a certain limit.

Conclusion – Starling Bank vs Monzo

In summary, both Starling Bank and Monzo offer competitive business banking services with their easy-to-use mobile apps and low fees.

While they have some key differences, such as lending options and customer support, choosing between the two ultimately depends on your business’s specific needs.

It’s important to carefully consider these factors before making a decision to ensure you choose the best option for your business.

FAQ