Wise vs Starling for business banking – Comparing features, costs, pros and cons

Are you considering Wise vs Starling? In recent years, the landscape of business banking has witnessed a significant transformation, with the emergence of innovative fintech companies challenging traditional banks. Two prominent players in this space are Wise and Starling.

Both companies offer digital banking services tailored specifically for businesses, providing efficient and cost-effective alternatives to traditional business banking. In this article, we will compare Wise and Starling, highlighting their pros, cons, key differences, costs, and other considerations to help UK business owners make an informed decision.

Wise vs Starling

Features	Wise Business Banking	Starling Business Banking
International Payments	✓	✓
Multi-Currency Accounts	✓	✗
Lending Options	Limited	✓
Cash Management Tools	Limited	✓
Real-time Spending Insights	✗	✓
Invoicing Capabilities	✗	✓
Integration with Accounting	Limited	✓
Licensing	E-Money Institution	Licensed Bank
Transaction Fees	Varies based on transactions	Varies based on transactions
Cash Handling	Limited	✓
Customer Support	Limited availability	Extensive availability

Note: This table provides a general overview of the features and may not encompass all the details. It’s essential to review each provider’s website or contact their customer support for the most up-to-date and accurate information regarding their offerings.

Statistics

1. Wise:

• Wise has over 13 million customers worldwide as of 2021, making it one of the largest fintech companies globally.
• In the fiscal year ending March 2021, Wise reported £421 million in revenue, representing a 70% increase compared to the previous year.
• Wise processes over £4.5 billion in customer payments every month, indicating its significant volume and impact in the international payments space.

2. Starling Bank:

• As of August 2021, Starling Bank had over 3.3 million personal and business accounts.
• Starling Bank secured £272 million in a funding round in March 2021, valuing the company at £1.1 billion. This funding reflects investor confidence in Starling Bank’s growth and potential.
• In 2020, Starling Bank won the British Bank Awards for “Best Business Banking Provider” and “Best British Bank,” further highlighting its recognition and industry achievements.

Wise

Wise (formerly TransferWise) is a leading fintech company offering digital banking services for businesses. With its emphasis on cost-effective international payments and multi-currency accounts, Wise provides businesses with a transparent and efficient platform for conducting global transactions and managing funds in various currencies.

Pros of Wise business banking

• International payments: Wise, formerly known as TransferWise, has built its reputation on its ability to provide cost-effective international money transfers. With Wise for Business, you can send and receive payments in different currencies at competitive exchange rates, making it ideal for businesses with global operations.
• Multi-currency accounts: Wise offers multi-currency accounts, allowing businesses to hold and manage funds in different currencies. This feature is beneficial for companies engaged in international trade or with clients and suppliers in various countries, as it helps mitigate currency conversion costs and provides greater flexibility.
• Transparency: Wise prides itself on transparency, clearly displaying the fees and exchange rates upfront. This transparency helps businesses plan their finances effectively and avoid unexpected costs.

Cons of Wise business banking

• Limited account features: Compared to traditional banks, Wise’s business accounts may have some limitations in terms of features. For example, it may not offer extensive lending options or advanced cash management tools that traditional banks provide.
• Limited cash handling: If your business deals with a significant amount of cash transactions, Wise may not be the best fit, as it primarily operates as a digital banking platform.

Starling Bank

Starling Bank is a prominent digital bank providing business banking services. With its user-friendly mobile app and comprehensive set of tools, including real-time spending insights and integration with accounting software, Starling offers businesses a convenient and streamlined banking experience. Competitive transaction fees and responsive customer support further enhance its appeal.

Pros of Starling business banking

• User-friendly interface: Starling Bank offers a sleek and intuitive mobile banking app with a user-friendly interface. It provides a seamless and convenient banking experience for business owners on the go.
• Comprehensive business tools: Starling Bank provides a range of useful business tools, including real-time spending insights, invoicing capabilities, integration with popular accounting software, and automated categorization of transactions. These tools can help streamline financial management processes and provide valuable insights into business finances.
• Competitive transaction fees: Starling Bank offers competitive transaction fees, including fee-free card payments and ATM withdrawals within certain limits. This can result in cost savings for businesses, especially those that rely heavily on digital payments and cash withdrawals.
• Quick and easy account opening: Opening a business account with Starling Bank is a straightforward and quick process. The digital onboarding and verification procedures eliminate the need for lengthy paperwork and visits to a physical branch.
• Responsive customer support: Starling Bank is known for its responsive customer support. They provide assistance through various channels, including in-app chat, phone, and email, ensuring that business owners can get timely support when needed.

Cons of Starling business banking

• Limited international payment options: While Starling Bank offers international payments, its offerings in this area may not be as extensive as those of Wise. If your business frequently deals with cross-border transactions, Wise may be a more suitable choice.
• Limited cash handling options: Although Starling Bank allows cash deposits through the Post Office network, it may not be as convenient for businesses that regularly handle significant amounts of cash. Businesses requiring extensive cash handling capabilities may find other banking options more suitable.
• Limited branch network: As a digital bank, Starling Bank does not have physical branches. While this is advantageous for many businesses due to the convenience of online banking, some businesses may prefer the option of face-to-face interaction with bank staff.
• Limited lending options: While Starling Bank offers business loans and overdraft facilities, the range of lending options may be more limited compared to traditional banks. Businesses with complex financing needs or specific borrowing requirements may find more comprehensive options elsewhere.
• Integration limitations: While Starling Bank integrates with popular accounting software, there may be limitations or compatibility issues depending on your specific software requirements. It’s advisable to check the integration options and ensure compatibility with your preferred accounting tools.

Wise vs Starling – Key differences

1. Account types: Wise offers business accounts tailored for freelancers, small businesses, and larger enterprises, while Starling offers business accounts for sole traders, limited companies, and partnerships. Consider your business structure and requirements when choosing between the two.
2. Business tools: Starling Bank provides a comprehensive set of tools to help businesses manage their finances effectively, including real-time spending insights, invoicing capabilities, and integration with accounting software. Wise, on the other hand, focuses more on international payments and currency management.
3. Banking platform: Starling Bank is a licensed bank, whereas Wise operates as an e-money institution. This distinction may have regulatory implications and affect your comfort level with either option.

Wise vs Starling – Costs and other considerations

1. Transaction fees: Both Wise and Starling offer competitive transaction fees, but the exact costs may vary depending on the type and volume of transactions. It is essential to carefully review their pricing structures and choose the option that aligns with your business’s needs.
2. Integration with third-party apps: If your business relies heavily on specific accounting or financial management software, consider the compatibility and ease of integration with Wise or Starling.
3. Customer support: Assess the quality and availability of customer support provided by both Wise and Starling. Prompt and reliable support can be crucial when dealing with financial matters.

Conclusion

In conclusion, both Wise and Starling offer compelling options for businesses seeking modern, user-friendly banking solutions.

Wise shines in its international payment capabilities and multi-currency accounts, making it an excellent choice for businesses engaged in global transactions.

On the other hand, Starling provides a broader range of business tools and features, making it a more comprehensive solution for day-to-day financial management.

Consider your business’s unique requirements, transaction volumes, international presence, and the importance of additional features when deciding between Wise and Starling for your business banking needs.

Wise vs Starling – FAQ

Remember, it’s always recommended to visit the respective provider’s website or contact their customer support for the most accurate and up-to-date information regarding their services, fees, and eligibility criteria.