Monzo vs HSBC for business banking

Updated on 7 August 2023

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

FeatureMonzoHSBC
Online BankingYesYes
Mobile BankingYesYes
Physical Branch AccessNoYes
Business Debit CardYesYes
Business Credit CardNoYes
International PaymentsYes, via TransferWiseYes
Business Savings AccountYesYes
Overdraft FacilityYesYes
Direct Debit PaymentsYesYes
Payroll ServicesNoYes
Business Loan ServicesNoYes
Business Insurance ServicesNoYes
24/7 Customer SupportYesYes
Multiple Account HoldersYesYes
Cheque BooksNoYes
Cash Deposit FacilityYes, via Post OfficeYes
Cash Withdrawal LimitsUp to £400 per dayDepends on account type
Invoice IntegrationYesNo
Financial Insights & BudgetingYesYes, via HSBC Kinetic app
Tailored Business SupportYes, via Business ToolkitYes, via HSBC Business Resource
Monzo vs HSBC

Revolut Business
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Tide Business Bank Accounts
✓ Free, Plus, or Pro Account
✓ iOS & Android Mobile App
✓ Upload & Auto-Match Receipts
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Card One Money
✓ No Credit Checks
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ANNA Money
✓ Apply In 10 Minutes
✓ Bookkeeping & Payroll Tools
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HSBC Business Banking
✓ Business Current Account
✓ In-Branch, Online & App Banking
✓ FSCS Protected
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Metro Business Banking
✓ Business Current Account
✓ High Street Presence
✓ FSCS Protected
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Mettle Business Banking
✓ Business Bank Account
✓ Online & App
✓ Quick & Easy Application Process
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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 ChargesMonzo
Monthly Account Fee£5 – £12
UK Bank Transfers (in/out)Free
International TransfersVia TransferWise
Cash Deposit Fee (at Post Office)£1 per deposit
ATM Withdrawals in the UKFree
ATM Withdrawals abroadFree, up to £200/month
Monzo fees and charges

Unique and standout features

Monzo offers a few unique features that differentiate it from traditional banks.

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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 ChargesHSBC
Monthly Account Fee£5.50 – £6.50
Electronic Payments (in/out)Free
Cash/Cheque Payments (in/out)Free, up to a limit
International PaymentsVaries
Cash Deposit FeeVaries
ATM Withdrawals in the UKFree
ATM Withdrawals abroadFree, up to a limit
HSBC fees and charges

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

Can I switch my business account from another bank to Monzo or HSBC?

Yes, both Monzo and HSBC participate in the Current Account Switch Service, which makes switching easier.

Do these banks offer interest on business account balances?

As of this writing, neither Monzo nor HSBC offers interest on their standard business current accounts.

Can I deposit cash or cheques at Monzo or HSBC?

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.

Are there any fees for setting up a business account with Monzo or HSBC?

Neither bank charges a setup fee, but they both have monthly account fees that vary depending on the specific type of business account.

Can I use these banks for international business transactions?

Yes, both banks offer services for international transactions. Monzo uses TransferWise for international transfers, while HSBC handles these transfers in-house.

Can I get a business loan from Monzo or HSBC?

Currently, HSBC offers business loans, while Monzo does not. However, Monzo may partner with third-party lenders to facilitate loans.

What kind of customer support do Monzo and HSBC offer?

Both banks offer customer support via phone and online. Monzo also provides in-app support, while HSBC offers in-person support at their branches.

Do Monzo and HSBC offer any financial management tools?

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.

Can I open a business savings account with these banks?

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.

Can more than one person manage the business account?

Yes, both Monzo and HSBC offer multi-user access to business accounts.

Reviewed by , Managing Director

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