Wise vs HSBC for business banking – Features, fees, pros and cons compared

When it comes to choosing a banking partner for your business, it’s crucial to find a provider that aligns with your specific needs and offers the right combination of services, convenience, and cost-effectiveness. In the UK, two popular options are Wise and HSBC, each with its own advantages and considerations.

In this article, we will compare Wise vs HSBC for business banking, highlighting the pros, cons, key differences, costs, and other essential factors for you to make an informed decision.

Wise vs HSBC

Features	Wise	HSBC
Account Types	Business accounts in multiple currencies	Business accounts in multiple currencies
Currency Exchange	Competitive rates and low fees	Available, but rates and fees may vary
International Transfers	Low-cost transfers with transparent fees	Available, fees may vary depending on the transfer
In-Person Services	No physical branches	Extensive network of branches for in-person support
Additional Banking Services	Limited additional services	Comprehensive range of banking services
Digital Tools and Integration	Seamless integration with accounting software	Advanced online and mobile banking tools
Global Presence	Limited physical presence	Extensive global presence with local support
Fees	Transparent and competitive	Fees may vary depending on specific services
Business Loans and Financing	Not offered	Available for eligible businesses
Customer Support	Email and online support	Multiple channels including phone and in-person

Please note that this table provides a general overview of the features and may not include every detail. It’s essential to conduct thorough research and consider your specific business needs before making a final decision.

Statistics

1. Wise (formerly TransferWise):

• Over 10 million customers worldwide as of 2021, making it one of the largest digital banking platforms.
• Transfers more than £4 billion ($5.6 billion) per month on average, indicating its popularity and usage for international transactions.
• Offers currency exchange in over 50 currencies, providing businesses with extensive options for conducting global transactions.

2. HSBC:

• As of 2021, HSBC serves over 40 million customers worldwide, making it one of the largest banking institutions globally.
• HSBC operates in more than 64 countries and territories, offering businesses access to a vast global network and localised support.
• The bank has a strong focus on international trade finance, with HSBC facilitating an estimated 13% of global trade flows as of 2020.

Wise

Pros of Wise for business banking

• Competitive exchange rates: Wise (formerly TransferWise) is renowned for its transparency and low-cost currency exchange services. If your business frequently deals with international clients or suppliers, Wise can offer significant savings on foreign exchange fees compared to traditional banks like HSBC.
• Borderless accounts: Wise provides borderless accounts that allow businesses to hold money in different currencies. This feature can be especially beneficial if your business operates globally or frequently deals with multiple currencies, as it enables you to receive, hold, and send money in different currencies with minimal fees.
• Ease of use: Wise offers a user-friendly platform that simplifies banking processes, making it easy to manage and track your business finances. The intuitive interface and robust mobile app provide convenience and flexibility, allowing you to access your account and perform transactions on the go.
• Cost-effective international transfers: Wise’s international transfer fees are generally lower than those of traditional banks, including HSBC. This can result in substantial savings, especially for businesses that frequently send or receive international payments.

Cons of Wise for business banking

• Limited in-person services: Unlike traditional banks such as HSBC, Wise primarily operates online, which means there are no physical branches. While this may be advantageous for some businesses that prefer digital banking, it can be a drawback if you require in-person services, such as cash deposits or face-to-face support.
• Limited additional banking services: Wise primarily focuses on currency exchange and international transfers. While they offer some additional services like debit cards and integration with accounting software, they do not provide the full range of banking services that traditional banks like HSBC offer, such as business loans, overdrafts, or merchant services.

HSBC

Pros of HSBC for business banking

• Extensive banking services: HSBC is a well-established bank with a wide range of services designed to cater to businesses of all sizes. From business accounts and loans to merchant services and trade finance, HSBC provides a comprehensive suite of banking solutions to meet diverse business needs.
• Global presence: HSBC is a global bank with a vast network of branches and offices worldwide. If your business operates internationally or requires frequent face-to-face interactions, HSBC’s extensive global presence can be a valuable asset, providing you with access to local support and expertise in various regions.
• Advanced digital tools: HSBC has invested in digital banking technologies, offering advanced online and mobile banking tools for business customers. These tools include features like cash management, real-time transaction monitoring, and robust security measures to protect your business against fraud and cyber threats.

Cons of HSBC for business banking

1. Higher fees: Compared to alternative digital banking solutions like Wise, HSBC’s fees can be higher, especially for international transactions and currency conversions. It’s important to carefully assess and compare the fee structures based on your business’s specific needs to determine the potential impact on your bottom line.
2. Complexity and bureaucracy: As a traditional bank, HSBC’s operational processes can sometimes be complex and bureaucratic, leading to longer processing times and potentially frustrating experiences. This aspect may not align well with businesses seeking more streamlined and efficient banking experiences.

Wise vs HSBC – Key differences

1. Digital vs. traditional: Wise is a digital-first banking solution, providing a seamless online experience with innovative features. On the other hand, HSBC combines traditional brick-and-mortar banking with digital capabilities, offering a mix of in-person services and digital tools.
2. Focus on international transactions: Wise specialises in international money transfers and currency exchange, making it an excellent choice for businesses with a global presence or those dealing with international clients. HSBC, while also offering international services, provides a broader range of banking solutions beyond currency exchange.
3. Cost structure: Wise prides itself on transparent and competitive pricing, with clear fees for international transfers and currency exchange. HSBC’s fees, on the other hand, may vary based on the specific services and transaction types, and they might be higher compared to Wise in certain cases.
4. Physical branches and local support: HSBC has a significant advantage in terms of physical branches and localised support, which can be beneficial if your business values face-to-face interactions or requires specific banking services that necessitate in-person visits.

Wise vs HSBC – Cost considerations:

When comparing the costs of Wise and HSBC for business banking, it’s crucial to assess your specific requirements.

Wise often provides better rates for international transfers and currency exchange, making it an attractive option for businesses with significant foreign exchange needs.

On the other hand, HSBC offers a more comprehensive suite of banking services but might have higher fees for certain transactions and services.

It’s advisable to carefully evaluate your business’s banking needs, transaction volumes, and the potential impact of fees on your finances.

Additionally, consider whether the additional services provided by HSBC justify the potentially higher costs compared to the cost-effective solutions offered by Wise.

Wise vs HSBC – Other considerations:

1. Business size and complexity: The size and complexity of your business play a significant role in choosing between Wise and HSBC. Larger businesses with complex financial needs and a requirement for extensive banking services may find HSBC’s offerings more suitable. In contrast, smaller businesses or those with a focus on international transactions might prefer the simplicity and cost-effectiveness of Wise.
2. Technology and integration: Assess the technology requirements of your business. Wise offers seamless integration with accounting software and other financial tools, simplifying your financial management. HSBC’s digital tools and capabilities may also be suitable, especially if you value advanced cash management features and security measures.
3. Local and global presence: Consider the geographic reach of your business operations. HSBC’s global presence and extensive network of branches can provide advantages for businesses with international interests or those seeking localised support in different regions. Wise, while offering international services, primarily operates digitally without physical branches.

Wise vs HSBC – Verdict

Choosing between Wise and HSBC for business banking requires careful consideration of your business’s unique needs, preferences, and cost considerations.

Wise excels in international transfers, low-cost currency exchange, and a user-friendly digital platform.

HSBC offers a comprehensive range of banking services, global support, and advanced digital tools but may come with higher fees and additional bureaucracy.

Assessing the key differences, costs, and other considerations will help you make an informed decision that best aligns with your business’s banking requirements.

Wise vs HSBC – FAQ

Remember, it’s essential to conduct your own research, review the terms and conditions, and consider your business’s specific needs when choosing between Wise and HSBC for business banking.