As more and more businesses turn to digital banking solutions, the options for online banking services have grown exponentially. Two popular options in the UK are Starling Bank and Revolut.
Both offer unique benefits and features that cater to businesses of all sizes. However, choosing the right one for your business can be a daunting task.
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In this article, we’ll compare Starling Bank and Revolut for business banking, outlining the pros and cons of each service, their key differences, costs, and other considerations to help you make an informed decision.
Starling Bank vs Revolut
| Feature | Starling Bank | Revolut |
|---|---|---|
| Full banking license | Yes | No |
| Multi-currency accounts | No | Yes |
| International payments | Yes | Yes |
| Free UK transfers | Yes | Yes |
| Free international transfers | No | Yes |
| Monthly fees | Yes | Yes |
| Cash withdrawals | Free | Limited free per month, then fees apply |
| Overdrafts | Yes | No |
| Customer support | Yes | Yes |
| Integration with accounting software | Yes | Yes |
Please note that this table is not exhaustive and some features may vary depending on the specific account and usage. It’s important for businesses to research and compare the features and benefits offered by each service to make an informed decision based on their specific needs and priorities.
Statistics
- Starling Bank:
- As of September 2021, Starling Bank had over 450,000 business accounts, demonstrating its growing popularity among businesses in the UK.
- Starling Bank reported a 600% increase in business customer deposits during 2020, reflecting its rapid growth and increasing trust among businesses.
- In a 2020 survey conducted by the Competition and Markets Authority (CMA), Starling Bank received the highest customer satisfaction score among business banking providers in the UK.
- Revolut:
- By September 2021, Revolut had over 500,000 business accounts, highlighting its substantial user base and appeal to businesses worldwide.
- In 2020, Revolut reported processing over 150 million transactions for its business customers, indicating its ability to handle high volumes of transactions.
- Revolut’s business customers have collectively saved over $1 billion in foreign exchange fees and hidden charges since the introduction of its multi-currency accounts.
Overview of Starling Bank
Starling Bank is a mobile-only bank that offers personal and business accounts. It was founded in 2014 and has quickly become one of the leading challenger banks in the UK.
Starling Bank offers a variety of features designed to help businesses manage their finances easily, such as real-time notifications, automated bookkeeping, and integrations with popular accounting software like Xero and QuickBooks.
Pros of Starling Bank
One of the most significant benefits of Starling Bank is that it offers a full UK bank account, complete with a sort code and account number, making it an ideal solution for businesses that need to make and receive payments in GBP.
Additionally, Starling Bank does not charge monthly account fees, and there are no transaction fees for payments made within the UK or EU. This makes it an affordable option for businesses that want to keep costs low.
Cons of Starling Bank
One potential drawback of Starling Bank is that it does not offer as many integrations as some of its competitors.
While it does integrate with popular accounting software like Xero and QuickBooks, it does not integrate with as many other third-party apps as Revolut does.
Additionally, while Starling Bank offers a GBP account, it does not currently offer multi-currency accounts, which could be a dealbreaker for businesses that frequently deal with foreign currencies.
Overview of Revolut
Revolut is another mobile-only bank that offers personal and business accounts. It was founded in 2015 and has grown rapidly, with over 15 million customers worldwide.
Revolut offers a variety of features designed to help businesses manage their finances, including expense tracking, team management, and multi-currency accounts.
Pros of Revolut
One of the significant benefits of Revolut is its focus on international payments. It offers multi-currency accounts, which allow businesses to hold and transfer funds in over 28 different currencies.
This can be a significant advantage for businesses that frequently deal with foreign currencies, as it can save them money on exchange fees.
Additionally, Revolut offers a variety of integrations with third-party apps, including accounting software like Xero and QuickBooks.
Cons of Revolut
One of the drawbacks of Revolut is that it is not a fully licensed bank in the UK. While it is authorised by the Financial Conduct Authority (FCA) to provide certain financial services, it does not have a full banking license.
This means that Revolut cannot offer all of the same protections and guarantees as a traditional bank.
Additionally, while Revolut offers a free account option, there are limits on the number of free transactions and other restrictions that can add up quickly for businesses.
Key differences
One of the main differences between Starling Bank and Revolut is their focus.
Starling Bank is primarily focused on UK-based businesses, offering a GBP account and fewer multi-currency options.
Revolut, on the other hand, is focused on international businesses, offering a variety of multi-currency options but lacking some of the protections of a traditional bank.
Costs and considerations
Both Starling Bank and Revolut offer free account options, but there are limits and restrictions to be aware of.
For example, Starling Bank offers unlimited free transactions within the UK and EU, but there are fees for international payments and cash withdrawals.
Revolut offers a certain number of free transactions per month, but charges fees for additional transactions and certain services.
When considering costs, it’s important to look beyond just the fees associated with the account. Businesses should also consider the potential cost savings of features like multi-currency accounts or integrations with accounting software.
Additionally, businesses should consider their specific needs and whether one service offers more of the features and benefits that are most important to them.
Another important consideration is the level of customer support offered by each service.
Both Starling Bank and Revolut offer customer support through their mobile apps and websites, but the quality and availability of support can vary.
Businesses should research and compare the customer support options offered by each service to ensure they have the support they need if an issue arises.
Conclusion
Both Starling Bank and Revolut offer unique features and benefits for businesses.
- Starling Bank’s focus on UK-based businesses and its full banking license make it an excellent choice for businesses that need to make and receive payments in GBP.
- Revolut’s focus on international payments and multi-currency accounts make it an excellent choice for businesses that frequently deal with foreign currencies.
Ultimately, the right choice for your business will depend on your specific needs and priorities. By carefully considering the pros and cons of each service, along with their costs and other considerations, businesses can make an informed decision that best meets their needs.
FAQ
Yes, both Starling Bank and Revolut are authorized and regulated by the Financial Conduct Authority (FCA) in the UK.
Yes, both Starling Bank and Revolut offer business accounts that are designed to handle a high volume of transactions. However, businesses should be aware of any fees or limits associated with their specific account and usage.
Yes, both Starling Bank and Revolut offer integrations with popular accounting software like Xero and QuickBooks. However, businesses should check which integrations are available and how they work before signing up for an account.
No, Starling Bank currently only offers GBP accounts for business customers. However, they do offer international payments in other currencies.
No, Revolut is not a full licensed bank in the UK, but it is authorized by the FCA to provide certain financial services. However, Revolut does offer many banking features, such as a debit card, international payments, and multi-currency accounts.
Yes, both Starling Bank and Revolut offer customer support through their mobile apps and websites. However, the quality and availability of support can vary, so businesses should research and compare the support options offered by each service.