In today’s rapidly evolving business landscape, having the right banking solution is crucial for entrepreneurs and small businesses. Gone are the days of relying solely on traditional banks, as innovative fintech companies are revolutionising the business banking experience. Two such contenders in the UK market are Starling vs Tide, offering digital banking services tailored specifically for businesses.
In this article, we will delve into the pros, cons, key differences, costs, and other considerations when comparing Starling vs Tide for your business banking needs.
Featured pro tools
| Features | Starling Bank | Tide |
|---|---|---|
| Account Types | Business current account | Business current account |
| User-Friendly Interface | Yes | Yes |
| Mobile App Availability | iOS and Android | iOS and Android |
| Branch Access | No physical branches | No physical branches |
| Cash Deposit Options | Post Office branches (up to £20,000 monthly limit) | PayPoint locations across the UK |
| International Payments | Fee-free | Small fees applicable |
| Integration with Accounting | Yes (Xero, FreeAgent, etc.) | Yes (Xero, FreeAgent, etc.) |
| Additional Tools | Invoicing, expense categorisation, budgeting | Expense management, receipt capture, notifications |
| Funding and Investors | Significant funding from venture capitalists | Independent growth |
| Customer Service | Round-the-clock support, highly rated | Improved customer service, past criticism |
| Lending Solutions | Business overdrafts, loans | Currently no lending solutions |
| Account Fees | Free basic account, optional paid features | Subscription-based plans with varying costs |
Statistics
- Starling Bank:
- As of September 2021, Starling Bank had over 2.3 million personal and business accounts.
- In March 2021, Starling Bank secured £272 million ($376 million) in a Series D funding round, valuing the company at £1.1 billion ($1.5 billion).
- Starling Bank reported a revenue of £97.6 million ($134.8 million) in its annual report for the financial year ending November 30, 2020, marking a significant increase from the previous year.
- Tide:
- Tide had over 450,000 business members as of September 2021, making it one of the leading business banking providers in the UK.
- In February 2021, Tide raised £72 million ($99.4 million) in a funding round, which included both equity and debt financing.
- Tide reported a significant increase in transaction volumes, with over £10 billion ($13.8 billion) processed through its platform as of September 2021.
Starling Bank
Pros of Starling Bank for business
- User-friendly experience: Starling Bank’s intuitive mobile app and web interface provide a seamless banking experience, allowing users to manage their finances effortlessly.
- Competitive features: Starling offers a range of useful features, including real-time notifications, in-app invoicing, integrations with popular accounting software, and expense categorisation.
- Business-focused tools: The bank provides tools designed specifically for businesses, such as multiple accounts, goal setting, and budgeting features, empowering entrepreneurs to stay on top of their finances.
- Award-winning customer service: Starling Bank is renowned for its exceptional customer service, with round-the-clock support, quick response times, and a reputation for going above and beyond to assist their customers.
Cons of Starling Bank for business
- Limited branch access: Starling is a digital-only bank, meaning there are no physical branches available for face-to-face interactions. While this may not be a concern for many, some businesses may still prefer in-person banking services.
- Cash deposit limitations: Since Starling does not have its own physical branches, cash deposits can only be made at designated Post Office branches, with a monthly limit of £20,000. This may be restrictive for businesses handling significant cash transactions.
Tide
Pros of Tide for business
- Quick and easy account setup: Opening an account with Tide is a swift and straightforward process, with minimal paperwork and no credit checks. This makes it an attractive option for businesses needing immediate banking solutions.
- Seamless integration with accounting software: Tide integrates seamlessly with popular accounting software, simplifying bookkeeping tasks and saving businesses valuable time.
- Tools for expense management: The Tide app offers smart features like automatic categorisation of expenses, real-time notifications, and the ability to capture and store receipts digitally, facilitating efficient expense management.
- Cash deposit partnership: Unlike Starling, Tide has partnered with PayPoint, allowing businesses to deposit cash at various locations across the UK, providing more flexibility for cash-intensive enterprises.
Cons of Tide for Business
- Service limitations: Tide’s customer service has faced criticism in the past, with some users reporting slow response times and difficulty reaching support. However, the company has been actively working to improve its customer service offering.
- Limited financing options: Unlike traditional banks, Tide does not currently offer lending solutions or business loans. This may be a disadvantage for businesses seeking access to credit or financing options.
Key differences – Starling vs Tide
- Funding and investors: Starling Bank has secured significant funding from venture capitalists, allowing them to expand their product offerings and invest in technology and innovation. In contrast, Tide has focused on organic growth and remains independent.
- Account fees: Starling offers a free business banking account with optional paid add-ons for additional features, while Tide operates on a subscription-based model with different plans tailored to varying business needs. Businesses should carefully consider their requirements to determine the most cost-effective option.
Costs and considerations for Starling vs Tide
Starling Bank: Starling’s basic business banking account is free, while additional services such as international payments, cash deposits, and account management may incur fees. It’s essential to review their pricing structure to ensure it aligns with your business’s specific needs and transaction volumes.
Tide: Tide operates on a subscription-based model with various plans available, including a free plan with limited features and paid plans offering additional benefits. It’s crucial to assess your business requirements and select the plan that provides the necessary services without incurring unnecessary costs.
When considering which bank to choose for your business, it’s essential to evaluate factors beyond the immediate costs and features:
Security
Both Starling and Tide are regulated by the Financial Conduct Authority (FCA) and provide security measures to protect your funds and personal information. Review their security protocols, encryption technologies, and fraud detection systems to ensure your business’s financial assets are safeguarded.
Growth Potential
Consider your business’s growth trajectory and long-term goals. Evaluate the scalability and future offerings of each bank to determine if they can accommodate your evolving needs as your business expands.
Integration with third-party services
Assess the compatibility of Starling and Tide with the tools and services you currently use or plan to adopt in the future. Seamless integration with accounting software, payment processors, and other business applications can streamline your operations and improve efficiency.
User feedback and reputation
Research customer reviews, ratings, and testimonials to gain insights into the experiences of other businesses using Starling and Tide. Evaluate factors such as customer support, reliability, and overall satisfaction levels to make an informed decision.
Ultimately, the choice between Starling and Tide depends on your business’s unique requirements, preferences, and priorities. Both banks offer innovative digital solutions tailored to businesses, with distinct strengths and limitations.
Take the time to assess their features, costs, customer service, and additional considerations to select the best banking partner that aligns with your business objectives and optimises your financial operations.
FAQ for Starling vs Tide
Yes, both Starling and Tide offer business accounts that cater to sole traders and freelancers. You can apply for an account as an individual entrepreneur.
Starling Bank has no transaction limits on their business accounts. You can make unlimited transactions, including payments, transfers, and withdrawals. Tide, on the other hand, has certain transaction limits depending on the plan you choose. It’s important to review the specific limits associated with each plan.
Starling Bank allows cash deposits at designated Post Office branches, with a monthly limit of £20,000. Tide, on the other hand, has partnered with PayPoint, enabling cash deposits at various locations across the UK. Make sure to review the cash deposit options and limitations for each bank.
Starling Bank offers fee-free international payments for their business customers. Tide, on the other hand, charges a small fee for international payments, varying based on the plan you choose. If your business conducts international transactions frequently, it’s important to consider the associated costs.
Starling Bank provides business overdrafts and loans to eligible customers, with competitive interest rates. Tide, however, currently does not offer lending solutions. If access to credit is crucial for your business, Starling may be a more suitable option.
Yes, both Starling and Tide offer integrations with popular accounting software such as Xero and FreeAgent. These integrations streamline your financial management processes by automatically syncing transactions, categorizing expenses, and generating reports.
Starling Bank is renowned for its excellent customer service, offering round-the-clock support via in-app chat, email, and phone. They have received positive feedback for their responsiveness and helpfulness. Tide has made efforts to improve its customer service but has faced some criticism in the past. It’s advisable to consider the level of customer support as a factor in your decision-making process.
Yes, both Starling and Tide offer a switching service to make the transition from your current bank easier. They provide assistance in transferring your account details, direct debits, and standing orders to ensure a smooth switch.
Remember, it’s important to review the latest information and visit the respective websites of Starling and Tide to get accurate and up-to-date details regarding their services, fees, and terms and conditions. Additionally, consider consulting with a financial advisor or business banking expert to make an informed decision based on your specific business needs.