In the fast-paced world of business, efficient and reliable banking services are integral to successful operations. Digital-first banks like Monzo are disrupting the traditional banking sector, with HSBC, one of the oldest financial institutions, not exempted. This article offers a comprehensive comparison of Monzo vs HSBC business banking services, touching on features, pros and cons, fees and charges, unique features, and frequently asked questions to help UK businesses make an informed decision.
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Monzo vs HSBC
| Feature | Monzo | HSBC |
|---|---|---|
| Online Banking | Yes | Yes |
| Mobile Banking | Yes | Yes |
| Physical Branch Access | No | Yes |
| Business Debit Card | Yes | Yes |
| Business Credit Card | No | Yes |
| International Payments | Yes, via TransferWise | Yes |
| Business Savings Account | Yes | Yes |
| Overdraft Facility | Yes | Yes |
| Direct Debit Payments | Yes | Yes |
| Payroll Services | No | Yes |
| Business Loan Services | No | Yes |
| Business Insurance Services | No | Yes |
| 24/7 Customer Support | Yes | Yes |
| Multiple Account Holders | Yes | Yes |
| Cheque Books | No | Yes |
| Cash Deposit Facility | Yes, via Post Office | Yes |
| Cash Withdrawal Limits | Up to £400 per day | Depends on account type |
| Invoice Integration | Yes | No |
| Financial Insights & Budgeting | Yes | Yes, via HSBC Kinetic app |
| Tailored Business Support | Yes, via Business Toolkit | Yes, via HSBC Business Resource |
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 | 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 |
Monzo
Monzo, the digital challenger bank, offers a novel approach to business banking with a fully mobile experience. In just a few years, Monzo has amassed a sizable user base with its streamlined, user-friendly services, appealing especially to SMEs and startups.
Pros and cons
Pros
- Digital-first Experience: Monzo is built with a mobile-first approach, providing an intuitive interface for all business banking needs.
- Fee-free UK Bank Transfers: Monzo offers unlimited fee-free bank transfers within the UK.
- Easy Expense Tracking: With real-time notifications and categorisation, tracking business expenses is simplified.
- Invoice Integration: Monzo allows businesses to create and send invoices directly from the app.
Cons
- No Physical Branches: Monzo lacks physical branches, which can be a disadvantage for businesses dealing heavily with cash or cheques.
- No Dedicated Business Loans or Insurance Services: Unlike traditional banks, Monzo does not offer business loans or insurance services.
- Limited Cash and Cheque Handling: While cash can be deposited at Post Offices, there are fees, and cheque handling is inconvenient.
Table of fees and charges
| Fees and Charges | Monzo |
|---|---|
| Monthly Account Fee | £5 – £12 |
| UK Bank Transfers (in/out) | Free |
| International Transfers | Via TransferWise |
| Cash Deposit Fee (at Post Office) | £1 per deposit |
| ATM Withdrawals in the UK | Free |
| ATM Withdrawals abroad | Free, up to £200/month |
Unique and standout features
Monzo offers a few unique features that differentiate it from traditional banks.
Cutting edge payroll software
- Powerful and easy to use
- HMRC & RTI compliant
- Used by payroll pros
The CRM platform to grow your business
- Great for entrepreneurs
- Powerful data analytics
- Manage sales and data
Powerful web builder and advanced business tools
- Great for startups
- Powerful web page builder
- E-commerce available
Supercharged content planning
- Great for marketing
- Better than lists or sheets
- Manage social media
Create a new website in 10 minutes. Easy.
- Launch your website fast
- Powerful data intuitive
- No coding skills needed
With a digital-first strategy, Monzo’s app is designed for easy navigation and intuitive use.
Its Business Toolkit, available for an additional monthly fee, provides powerful features like invoice creation, tax estimation, and automatic expense categorisation.
HSBC
HSBC, as one of the world’s largest and oldest banking and financial services organisations, offers a comprehensive suite of business banking services. With a history of stable, reliable service, HSBC continues to be a trusted choice for businesses of all sizes.
Pros and cons
Pros
- Wide Range of Services: HSBC offers an extensive portfolio of banking services, including business loans, insurance, and more.
- Physical Branches: Physical branches facilitate transactions that require in-person assistance, such as large cash deposits.
- International Reach: HSBC’s global presence makes international business banking more convenient.
Cons
- Interface and Experience: The user interface of HSBC’s digital services is often considered less intuitive than its digital-first competitors.
- Slow Transaction Notifications: Unlike Monzo, HSBC does not provide instant notifications for transactions.
- Costly International Transfers: International transfers can be expensive with HSBC.
Table of fees and charges
| Fees and Charges | HSBC |
|---|---|
| Monthly Account Fee | £5.50 – £6.50 |
| Electronic Payments (in/out) | Free |
| Cash/Cheque Payments (in/out) | Free, up to a limit |
| International Payments | Varies |
| Cash Deposit Fee | Varies |
| ATM Withdrawals in the UK | Free |
| ATM Withdrawals abroad | Free, up to a limit |
Unique and standout features
HSBC provides a comprehensive suite of banking services, with international banking and loan offerings being its standout features.
The HSBC Kinetic app offers financial insights and budgeting tools tailored for businesses, while their dedicated business support through HSBC Business Resource helps businesses with strategic insights.
Conclusion – Monzo vs HSBC
Choosing between Monzo and HSBC largely depends on the specific needs of your business.
If you’re a digitally-savvy SME looking for a modern banking experience with powerful budgeting tools, Monzo is an excellent choice.
On the other hand, if your business requires a broad suite of banking services, including loans, insurance, and physical branch support, HSBC’s comprehensive offerings may be more suitable.
FAQ
Yes, both Monzo and HSBC participate in the Current Account Switch Service, which makes switching easier.
As of this writing, neither Monzo nor HSBC offers interest on their standard business current accounts.
Yes, cash and cheques can be deposited at HSBC branches. For Monzo, cash can be deposited at Post Offices for a fee, while cheques must be sent via post to Monzo.
Neither bank charges a setup fee, but they both have monthly account fees that vary depending on the specific type of business account.
Yes, both banks offer services for international transactions. Monzo uses TransferWise for international transfers, while HSBC handles these transfers in-house.
Currently, HSBC offers business loans, while Monzo does not. However, Monzo may partner with third-party lenders to facilitate loans.
Both banks offer customer support via phone and online. Monzo also provides in-app support, while HSBC offers in-person support at their branches.
Yes, Monzo provides real-time notifications, expense categorisation, and a business toolkit for an additional fee. HSBC offers financial insights and budgeting tools through its HSBC Kinetic app.
Yes, both Monzo and HSBC offer business savings accounts. The specific features and interest rates vary, so it’s best to check their websites for the most up-to-date information.
Yes, both Monzo and HSBC offer multi-user access to business accounts.