In today’s rapidly evolving digital age, choosing the right bank for your business can have a profound impact on your day-to-day operations and long-term success. Among the top contenders in the UK business banking sector are NatWest vs Starling Bank, each offering a distinct approach.
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NatWest, a traditional and established banking institution, boasts an extensive network of physical branches, while Starling, a relatively young and agile digital-only bank, impresses with innovative, user-friendly technology.
NatWest vs Starling Bank
| Feature | NatWest | Starling Bank |
|---|---|---|
| Online Banking | Yes | Yes |
| Mobile Banking | Yes | Yes |
| Physical Branches | Yes | No |
| Business Account Types | Various | Single option with multiple add-ons |
| Customer Support | Phone, In-branch, Online | Phone, Email, App-based |
| 24/7 Support | No | Yes |
| Business Loans | Yes | Yes |
| Overdraft Facility | Yes | Yes |
| Business Credit Cards | Yes | Yes |
| International Payments | Yes | Yes |
| Interest on Balances | No | Yes |
| Cash Deposits | In-branch, Post Office | Post Office, Mobile cheque imaging |
| Cheque Book Issued | Yes | No |
| Business Savings Account | Yes | No |
| Direct Debit/Credit Setup | Yes | Yes |
| Free Banking Period | Yes, up to 18 months | No, but low cost |
| Financial Advice Services | Yes | No |
| Cash Flow Forecast Tool | Yes | Yes |
| Instant Account Setup | No | Yes |
| Business Expense Card | Yes | Yes |
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 | HSBC Business Banking ✓ Business Current Account ✓ In-Branch, Online & App Banking ✓ FSCS Protected Pricing Trial period Contact | |
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 | 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 |
NatWest
NatWest, a banking stalwart, brings decades of experience and trust in its banking services. It provides a plethora of business banking solutions, catering to the needs of a wide spectrum of businesses, from sole traders and SMEs to large enterprises.
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Pros and cons
Pros
- Branch Access: Unlike most digital banks, NatWest maintains a physical presence with branches across the UK. This can be particularly helpful for businesses that deal with regular cash transactions or require face-to-face service.
- Comprehensive Service Offering: NatWest offers a broad range of banking services including loans, overdrafts, mortgages, and insurance, making it a one-stop-shop for all business banking needs.
- Financial Advice Services: NatWest offers financial advice services, which can be invaluable for businesses looking for tailored advice to manage their finances effectively.
- Free Banking Period: For new businesses, NatWest offers up to 18 months of free business banking.
Cons
- Online Platform: While NatWest does offer online and mobile banking, the user experience is often reported to be less intuitive and user-friendly compared to digital-only banks.
- Customer Service: Some users have reported delays and inefficiencies in NatWest’s customer service.
Table of fees and charges
| Service | Fee |
|---|---|
| Business Current Account | £5 monthly fee (waived for startups up to 18 months) |
| Electronic Payments (in or out) | Free |
| ATM Cash Withdrawal | Free |
| Branch/Post Office Cash Withdrawal | £0.90 per £100 |
| International Payments | £15 to £30 per transaction |
Unique and standout features
NatWest has introduced several innovative features to compete with digital banks.
One standout feature is the ‘Mettle‘ app, designed for small businesses and self-employed individuals. The app offers an array of digital banking services and tools to track invoices, manage finances, and forecast cash flow.
NatWest also has a strong commitment to sustainability. They provide a Sustainable Business Toolkit to help businesses adopt more sustainable practices.
For enterprises focused on social responsibility, this feature makes NatWest an appealing choice.
Starling Bank
As one of the pioneers of digital banking in the UK, Starling Bank offers an easy-to-use, intuitive platform tailored for businesses that value simplicity, efficiency, and the ability to bank on-the-go.
Pros and cons
Pros
- User-Friendly: Starling’s app-based banking system is designed for simplicity and ease of use. It’s especially popular among businesses that prefer to handle their banking needs digitally.
- 24/7 Support: Starling provides round-the-clock customer support through the app, email, and phone.
- Instant Account Setup: New customers can set up a Starling business account within minutes.
- Interest on Balances: Unlike many banks, Starling pays interest on positive account balances.
Cons
- No Physical Branches: While digital banking offers many conveniences, the lack of physical branches might deter businesses preferring traditional, face-to-face banking.
- Limited Services: Starling’s product offering is more limited than traditional banks, lacking options like business savings accounts or financial advice services.
Table of fees and charges
| Service | Fee |
|---|---|
| Business Current Account | Free |
| Electronic Payments (in or out) | Free |
| ATM Cash Withdrawal | Free |
| Post Office Cash Deposit | 0.3% of deposit value |
| International Payments | 0.4% exchange rate fee |
Unique and standout features
Starling Bank’s key standout feature is its user-friendly mobile application, offering a wealth of features such as real-time notifications, spending categorisation, and easy international payments.
It also provides an integrated tool for invoicing and tax estimation, making financial management simpler for business owners.
Another standout feature is the ‘Marketplace’. This allows businesses to connect their Starling account to a range of third-party apps and services including accounting software, invoicing platforms, insurance providers, and more, creating an all-in-one business management hub.
Conclusion – NatWest vs Starling Bank
Choosing between NatWest vs Starling Bank will depend largely on your business’s specific needs and your preference for traditional or digital banking.
NatWest, with its robust suite of services, physical branches, and financial advice, may be a better fit for businesses needing comprehensive banking solutions and in-person services.
Conversely, Starling Bank, with its intuitive app, 24/7 support, and quick setup process, may better serve businesses seeking a streamlined, digital-first banking experience.
FAQ
NatWest offers up to 18 months of free business banking for start-ups, while Starling Bank has no free banking period, but generally lower fees.
Both banks support international payments. However, Starling Bank offers a more straightforward and cheaper process, making it more suitable for businesses with frequent international transactions.
While both banks offer customer support, Starling Bank provides 24/7 support through various channels including in-app chat, which might be more convenient for some businesses.
Yes, you can deposit cash at both banks. With NatWest, you can deposit at their branches or the Post Office. With Starling, you can deposit cash at the Post Office.
Starling Bank, as a digital-only bank, provides a more user-friendly and intuitive app-based banking experience.
Yes, NatWest does offer a mobile app for business banking, but user experience may not be as smooth or feature-rich as Starling’s app.
Yes, both NatWest and Starling Bank provide business loans and overdraft facilities, but terms and conditions vary.