In the competitive business banking landscape, choosing the right bank for your company can make a considerable difference in your bottom line. Among the multitude of options, two that stand out are Wise, previously known as TransferWise, a fintech company known for its international money transfer services, and HSBC, one of the largest traditional banking institutions worldwide. This article will help you understand how Wise vs HSBC compare in terms of features, pros, cons, fees, and unique characteristics.
Wise vs HSBC
| Feature | Wise | HSBC |
|---|---|---|
| Business account setup | Online | Online or Branch |
| Mobile banking | Yes | Yes |
| Global money transfers | Yes | Yes |
| Real-time notifications | Yes | Yes |
| Invoicing | Yes | Yes |
| Employee cards | Yes | Yes |
| Cheque handling | No | Yes |
| Overdrafts | No | Yes |
| Loans and credit facilities | No | Yes |
| Multi-currency accounts | Yes | Yes |
| Fixed term deposit accounts | No | Yes |
| FX rates | Mid-market rate | Marked up rate |
| Debit Cards | Yes | Yes |
| Credit Cards | No | Yes |
| Telephone Banking | Yes | Yes |
| Video Banking | No | Yes |
| Savings Accounts | No | Yes |
| Interest on Balance | No | Yes, on certain accounts |
| Direct Debits | Yes | Yes |
| Standing Orders | Yes | Yes |
| Integration with Accounting Software | Yes | Yes |
 | 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 |
Wise
Wise, a fintech company renowned for revolutionising the international money transfer market, offers a business account that gives businesses the freedom to transact globally at minimal costs.
Pros and cons
Pros
- Transparency: Wise provides upfront, clear costs with no hidden charges.
- Affordability: The platform charges low, competitive fees for international money transfers.
- Multicurrency features: With the multi-currency account, businesses can hold and manage funds in 50+ currencies.
- Integration: Wise integrates with business tools like Xero and Quickbooks for smooth business operations.
Cons
- Limited services: Wise lacks services offered by traditional banks, such as loans, credit cards, and savings accounts.
- No physical branches: All services are online, which may not suit businesses preferring face-to-face banking.
Table of fees and charges
| Service | Fee |
|---|---|
| Account Setup | Free |
| Monthly Account Fee | Free |
| International Transfer | 0.35-2.85% + fixed fee |
| Receiving Money | Free |
| Debit Card Issuance | Free |
Unique and standout features
Wise’s most unique feature is its multi-currency account, which allows businesses to hold over 50 currencies and convert them whenever needed at the real exchange rate.
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
This feature can significantly reduce currency conversion costs.
Furthermore, Wise’s integration with popular accounting tools can simplify accounting tasks for businesses.
Finally, its batch payment tool enables businesses to pay up to 1,000 invoices at once.
HSBC
HSBC is a global banking giant offering a comprehensive suite of business banking services and products.
Pros and cons
Pros
- Full-service bank: HSBC offers a wide range of services, from loans and overdrafts to savings accounts and fixed deposits.
- Global presence: HSBC’s vast network of branches can be an advantage for businesses with international operations.
- Relationship management: Dedicated relationship managers are available to provide personalised banking advice.
Cons
- Fees: HSBC’s fees for international transfers and other services can be higher compared to fintech competitors.
- Complex Pricing: It can be challenging to understand HSBC’s fees structure, as they often vary based on individual business circumstances.
Table of fees and charges
| Service | Fee |
|---|---|
| Account Setup | Free |
| Monthly Account Fee | £5.50-£6.50 |
| International Transfer | £4-£30 |
| Receiving Money | £0-£8 |
| Debit Card Issuance | Free |
Unique and standout features
HSBC’s unique offering is its comprehensive business banking services, making it a one-stop-shop for many companies.
The bank’s International Business Guides provide critical market insights and advice for businesses considering international expansion.
Additionally, their video banking service, which allows face-to-face consultations with HSBC specialists through a secure video link, sets it apart in the digital banking era.
Conclusion – Wise vs HSBC
When choosing between Wise vs HSBC for business banking, the decision depends on your business’s unique needs.
If your business frequently handles international transactions and you seek a straightforward, cost-effective solution, Wise’s business account may be an excellent choice.
However, if your business requires more comprehensive banking services, including credit facilities and a broad physical branch network, HSBC might be more suitable.
FAQ
No, Wise does not currently offer credit facilities such as loans or credit cards.
Yes, HSBC integrates with popular accounting software such as Quickbooks and Xero.
You can hold and manage funds in over 50 different currencies with Wise’s multi-currency account.
Yes, HSBC offers dedicated relationship managers for their business banking customers to provide personalised advice.
No, Wise is a digital-only platform, and all services, including account setup, are handled online.
Businesses that require a wide array of banking services, such as loans, credit facilities, and international banking, could benefit significantly from HSBC’s comprehensive offerings.