Choosing the right bank for your business is a crucial step that can influence your company’s operations, growth, and success. In the UK, Metro Bank vs HSBC are two prominent players in the banking sector that offer a range of business banking services.
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This article aims to provide a comprehensive comparison between these two banking giants to help you make an informed decision that caters to your business needs.
Metro Bank vs HSBC
| Features | Metro Bank | HSBC |
|---|---|---|
| Business Current Account | Yes | Yes |
| Online & Mobile Banking | Yes | Yes |
| International Business Services | Yes | Yes |
| Startup Packages | Yes | Yes |
| Cash Deposit | Free up to a limit | Charges apply |
| Overdraft | Yes | Yes |
| Business Credit Card | Yes | Yes |
| Business Loans | Yes | Yes |
| Business Savings Account | Yes | Yes |
| Contactless Payment Support | Yes | Yes |
| Business Insurance | Yes | Yes |
| Branch Network | UK focused | Global |
| 24/7 Customer Service | Yes | Yes |
| FX Services | Yes | Yes |
| Merchant Services | Yes | Yes |
| Invoice Financing | Yes | Yes |
| Business Debit Card | Yes | Yes |
| Wealth Management Services | No | Yes |
| Sustainability Services | Limited | Extensive |
| Business Mentor Services | No | Yes |
 | Wallester Business ✓ Virtual & Physical Cards ✓ No Setup Fees ✓ No Monthly Fee Pricing Trial period Contact | |
 | Revolut Business ✓ Business Current Account ✓ Award-Winning Mobile App ✓ Quick & Easy Application Process Pricing Trial period Contact | |
 | Tide Business Bank Accounts ✓ Free, Plus, or Pro Account ✓ iOS & Android Mobile App ✓ Upload & Auto-Match Receipts Pricing Trial period Contact | |
 | Card One Money ✓ No Credit Checks ✓ Simple Fees ✓ Up To 3.5% Cashback Pricing Trial period Contact | |
 | ANNA Money ✓ Apply In 10 Minutes ✓ Bookkeeping & Payroll Tools ✓ User-Friendly Mobile App Pricing Trial period Contact | |
 | HSBC Business Banking ✓ Business Current Account ✓ In-Branch, Online & App Banking ✓ FSCS Protected Pricing Trial period Contact | |
 | Metro Business Banking ✓ Business Current Account ✓ High Street Presence ✓ FSCS Protected Pricing Trial period Contact | |
 | Mettle Business Banking ✓ Business Bank Account ✓ Online & App ✓ Quick & Easy Application Process Pricing Trial period Contact | |
 | Monzo Business Banking ✓ Business Current Account ✓ Dedicated mobile app experience ✓ FSCS Protected Pricing Trial period Contact | |
 | Virgin Money ✓ Business M Account ✓ In-Store, Online & App Banking ✓ Insights & Forecasting Platform Pricing Trial period Contact |
Metro Bank
Metro Bank, a newer entrant in the UK banking sector, provides a comprehensive range of banking services aimed specifically at businesses. It distinguishes itself through its customer-focused approach, modern banking features, and an extensive range of digital services.
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Pros and cons
Pros
- Modern and user-friendly online and mobile banking platforms.
- Great customer service with 24/7 telephone support.
- No monthly fees for businesses with a balance above a certain threshold.
- In-person banking services with extended branch opening hours.
- Free cash deposits up to a certain limit.
Cons
- Limited international presence may affect businesses operating globally.
- Lack of wealth management services.
- Fewer sustainable business services compared to other major banks.
Table of fees and charges
| Service | Fees |
|---|---|
| Business Current Account | £5/month (if balance is below threshold) |
| Cash Deposit (above the limit) | 0.7% of cash deposit |
| Business Credit Card | £12/year |
| Overdraft | 15% EAR |
| Business Loans | Starts at 4.5% p.a. |
Unique and standout features
Metro Bank is renowned for its innovative, customer-centric approach to banking.
They are known for their ‘stores’ – bank branches with extended opening hours, seven days a week, a rarity in traditional banking.
Metro Bank’s online and mobile banking platforms are exceptionally user-friendly, offering modern features like bulk payments, accounting software integration, and personalised cash flow forecasts.
They also stand out with their free cash deposits up to a limit, something which can significantly benefit cash-heavy businesses.
HSBC
HSBC, one of the largest banking and financial services organisations in the world, offers a comprehensive suite of business banking services. Their global presence and extensive range of services make them a viable option for businesses of all sizes.
Pros and cons
Pros
- Extensive global network benefits businesses operating internationally.
- Wide range of services including wealth management and business mentor services.
- Strong sustainability services to assist businesses in becoming greener.
- Advanced security measures and fraud detection systems.
Cons
- Some services, such as cash deposits, involve additional charges.
- Customer service experience can vary.
- Online banking platform may not be as intuitive as newer banks.
Table of fees and charges
| Service | Fees |
|---|---|
| Business Current Account | £6.50/month |
| Cash Deposit | 0.5% of cash deposit |
| Business Credit Card | £32/year |
| Overdraft | 19.9% EAR |
| Business Loans | Starts at 4.9% p.a. |
Unique and standout features
HSBC’s standout feature is its global presence, with branches in numerous countries, making them a preferred choice for businesses with international operations.
Their range of sustainability services, including green loans and sustainability-focused advice, are also distinctive features.
Additionally, HSBC offers wealth management services and business mentorship programs, which can be invaluable for businesses looking for strategic advice and growth opportunities.
Conclusion – Metro Bank vs HSBC
In choosing between Metro Bank and HSBC for business banking, it boils down to your business’s individual needs and circumstances.
If your business operates primarily within the UK and values a modern, digital-first banking experience, Metro Bank’s innovative features and extended branch hours could be attractive.
On the other hand, if your business operates globally or values a wide range of services including wealth management and sustainability services, HSBC’s extensive offerings and international network could be more appealing.
Ultimately, it’s important to assess your business needs thoroughly before making a decision.
FAQ
Yes, both banks are regulated by the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA). Deposits up to £85,000 are covered by the Financial Services Compensation Scheme (FSCS).
Yes, both Metro Bank and HSBC allow online applications for business accounts.
Yes, both Metro Bank and HSBC offer startup packages that include business accounts, access to business advisors, and other resources.
Both banks provide customer support through various channels, including telephone, email, and in-branch services. Metro Bank offers 24/7 telephone support, while HSBC’s customer service hours may vary.
Yes, both Metro Bank and HSBC offer services tailored to freelancers and sole traders, including current accounts, savings accounts, and access to business advice.
Both Metro Bank and HSBC offer free cash withdrawals at their ATMs. However, for international withdrawals, charges may apply. Please check with the respective bank for the current rates.
Yes, both banks offer the ability to integrate with popular accounting software. However, availability may depend on the specific software package.