Starling Business Account Over MONZO Business account?

[mrka]

Once quick glance at this link and it would appear Starling is the clear winner?
Am I missing something?

https://www.mobiletransaction.org/starling-vs-monzo-business-account/

Looking to open a business account asap.

Also, do you think there are any drawbacks to opening any of the two listed here? My business is strictly online, no cash, I don't even meet customers usually.

I am a limited company and will be going voluntarily VAT registered as soon as I have set up a business account.

 

[arnydnxluk]

Have been a happy Starling Bank customer for over a year across three businesses. Monzo doesn't seem to offer any benefit, I have less faith in them and they charge a monthly fee. Starling is the clear winner for me too - would recommend.

 

[Darren_Ssc]

Have been a happy Starling Bank customer for over a year across three businesses. Monzo doesn't seem to offer any benefit, I have less faith in them and they charge a monthly fee. Starling is the clear winner for me too - would recommend.

Both have the obvious disadvantages if you need human assistance but I'd be more comfortable with a loss making operation that charges a fee over one that doesn't.

 

[Mark T Jones]

Starling is more likely to be around in 12 months time

 

[jnc]

I have used Starling since March and am really happy with them

 

[arnydnxluk]

Both have the obvious disadvantages if you need human assistance but I'd be more comfortable with a loss making operation that charges a fee over one that doesn't.

It feels to me that Starling is being run more like an actual bank by a CEO with weight in the game, whereas it feels as though Monzo is run like your typical tech startup. The latter doesn't fill me with much confidence.

I haven't found any disadvantages in human assistance. To compare, traditional banks do offer branches but they seem more like proxy contact centres these days, I can't see the benefit unless you're dealing with cash. Starling offers the usual telephone/postal contact but also live chat and digital messaging, which most banks offer in some very limited form (others not at all). This is a more useful approach to human assistance for me and I've yet to have any problems contacting them via the app. Have seen good things said about their phone response times too.

Of course everyone's experience will be different and larger businesses may need some higher level of personal service, but I'd imagine any small business not dealing with cash would be happy with Starling.

In terms of the account fee, isn't the real money in banking made by services such as lending? If so it makes sense to not have an account fee during the growth stage. I doubt the typical "electronic banking" fee of around £5-£10/month makes much difference.

From what I've read briefly in the past, Starling are doing well in business banking - they actually have many customers and have been doing a lot of lending, Monzo not so much IIRC.

 

[Darren_Ssc]

From what I've read briefly in the past, Starling are doing well in business banking - they actually have many customers and have been doing a lot of lending, Monzo not so much IIRC.

I think Starling got off to a good start and Monzo were playing catch-up. Monzo did well at first with personal banking but they didn't exactly have a lot of competition.

Fair point about the monthly fees though, it probably isn't going to make much difference in the long run.

I am fortunate that I have a Barclays branch where the staff are actually really good and I'm not swapping them for an app anytime soon even though Barclays' online offering is awful.

I appreciate not everyone is so fortunate, my nearest Barclays branch is actually pretty terrible. The exact opposite of the branch I use funnily enough.

 

[MyAccountantOnline]

Once quick glance at this link and it would appear Starling is the clear winner?
Am I missing something?

https://www.mobiletransaction.org/starling-vs-monzo-business-account/

Looking to open a business account asap.

Also, do you think there are any drawbacks to opening any of the two listed here? My business is strictly online, no cash, I don't even meet customers usually.

I am a limited company and will be going voluntarily VAT registered as soon as I have set up a business account.

I'm an accountant and the majority of my clients are limited companies with online only businesses and I still find most of them use the main traditional banks.

Some choose RBS, NatWest or Mettle as they get FreeAgent free. That might be something you want to consider especially as you are going to register for VAT so will need software which deals with VAT.

I do have a few clients who use Starling and haven't heard of any issues.

 

[Maxwell83]

Out of interest, if there is a fee, what is the attraction of one of these over high street banks like say Barclays?

 

[Darren_Ssc]

Out of interest, if there is a fee, what is the attraction of one of these over high street banks like say Barclays?

A better app and a brightly coloured card.

 

[arnydnxluk]

Out of interest, if there is a fee, what is the attraction of one of these over high street banks like say Barclays?

In the case of Starling (which doesn't have a fee yet):

• An app which isn't cumbersome to use.
• Better customer service with availability via digital messaging and chat.
  
• Feeds for Xero/FreeAgent which don't have problems constantly.
• Easily open EUR and USD accounts with a few taps.
  
• Create and remove unlimited 'spaces' which are essentially savings accounts but instead of having separate accounts the funds are ring fenced within the same account. This means separate balances in the app but you only have one account and statement to deal with when it comes to bookkeeping. I found the system weird at first but quickly realised it makes sense and is easier to use. Opening and closing savings accounts on a whim with traditional banks is not always straightforward and they love sending unnecessary paperwork.
• Push notifications for transactions; these aren't for everyone but can be handy in some cases, for example I do freelancing where it's nice to know when a client's payment lands. For those of you who think push notifications are a nuisance (which can be turned off!), my previous bank HSBC insisted on the snail mail equivalent with paper confirmation of every single incoming international transfer and apparently no way for them to stop this.
• Card details available to view at any time from within the app. This is super handy for a lazy person like me, I leave my cards in one place but can always make payments.

There are other small features such as locking/unlocking your card, ordering a new one, etc.

Even if there was a fee, it would be better value for money than a traditional bank for a small business.

Now if we're talking best value for money I think NatWest/Mettle with a free FreeAgent subscription is the one! Providing their app and online banking works well, but I'm doubtful of that so not not willing to spend the time finding out.

 

[Maxwell83]

In the case of Starling (which doesn't have a fee yet):

• An app which isn't cumbersome to use.
• Better customer service with availability via digital messaging and chat.
  
• Feeds for Xero/FreeAgent which don't have problems constantly.
• Easily open EUR and USD accounts with a few taps.
  
• Create and remove unlimited 'spaces' which are essentially savings accounts but instead of having separate accounts the funds are ring fenced within the same account. This means separate balances in the app but you only have one account and statement to deal with when it comes to bookkeeping. I found the system weird at first but quickly realised it makes sense and is easier to use. Opening and closing savings accounts on a whim with traditional banks is not always straightforward and they love sending unnecessary paperwork.
• Push notifications for transactions; these aren't for everyone but can be handy in some cases, for example I do freelancing where it's nice to know when a client's payment lands. For those of you who think push notifications are a nuisance (which can be turned off!), my previous bank HSBC insisted on the snail mail equivalent with paper confirmation of every single incoming international transfer and apparently no way for them to stop this.
• Card details available to view at any time from within the app. This is super handy for a lazy person like me, I leave my cards in one place but can always make payments.

There are other small features such as locking/unlocking your card, ordering a new one, etc.

Even if there was a fee, it would be better value for money than a traditional bank for a small business.

Now if we're talking best value for money I think NatWest/Mettle with a free FreeAgent subscription is the one! Providing their app and online banking works well, but I'm doubtful of that so not not willing to spend the time finding out.

Interesting. Sounds like they have approached banking from a tech-first perspective, as opposed to traditional banks that have the opposite approach.

I was just curious as to the benefits of these platforms. I'm satisfied with Barclays and the fee is cheap enough, but its nice to know about the alternatives in case I ever need more.

 

[Darren_Ssc]

Interesting. Sounds like they have approached banking from a tech-first perspective, as opposed to traditional banks that have the opposite approach.

I was just curious as to the benefits of these platforms. I'm satisfied with Barclays and the fee is cheap enough, but its nice to know about the alternatives in case I ever need more.

I should add to arnydnxluk's points that one benefit he missed would be the ease of logging in and making payments, transfers, etc. As a Barclays customer, you'll already know they don't always makes this as simple as it could be.

Push notifications are usually instant too. I have received two today from Barclays at midday for 2 payments I made at 6 am which isn't exactly useful?

Whether these would be enough to make a compelling case for switching I doubt though.

 

[Maxwell83]

I should add to arnydnxluk's points that one benefit he missed would be the ease of logging in and making payments, transfers, etc. As a Barclays customer, you'll already know they don't always makes this as simple as it could be.

Push notifications are usually instant too. I have received two today from Barclays at midday for 2 payments I made at 6 am which isn't exactly useful?

Whether these would be enough to make a compelling case for switching I doubt though.

Not a case for switching in and of itself, but I am aware that sooner or later, my bank usually p*sses me off enough over something or other, and I will bear these alternatives in mind if that time ever comes with Barclays!

 

[dabpc]

Been trying open a business account this week for a new ltd co. (Ltd by guarantee).

Monzo declined (as Ltd by guarantee).

Starling accepted (thankfully) as all the other major banks aren't accepting applications for new accounts, or are citing 6-12 weeks delay!