Digital Banks for Companies in the UK

In recent years, several banks have emerged that operate exclusively on the internet. These are attracting a large number of customers, both individuals and businesses. But what is the reason for this trend change? In this article, I explain why many corporations hire their services and mention some of the best digital banks for companies in the UK.

How do Traditional Banks Differ from Digital Banks for Companies in the UK?

The UK has traditionally been a hub for banking institutions, such as Barclays or Lloyds. However, in the past few years, several digital banks have emerged, and they are topping the customers trust rankings in the country.

This paradigm shift is mainly driven by the new functionalities that online banking includes:

Sending money transfers almost instantly and free of commissions.
Integration of purchase, sale and storage of cryptocurrencies and business shares.
Tools that allow you to control the finances and expenses of an enterprise in greater detail.

On the other hand, digital banks are investing more resources in technology, consequently improving the user experience in aspects such as the loading speed of their webpages. Moreover, they offer a more agile account opening process and a higher quality customer support level that traditional banking has not yet achieved.

For all the above reasons, online banking institutions are an alternative for those who are looking for simplicity, but also versatility when managing their savings. Therefore, they are attracting a large customer base quickly.

The Best Digital Banks for Companies in the UK

Monzo

Monzo is the best valued digital bank among other businesses. It is known because it has broken several records for crowdfunding speed. In this article, I explain its history in more detail.

This company offers several types of accounts: a free option with limited functionalities and two “premium” alternatives (for 9 and 25 GBP per month). The latter allow you to link accounting programs, such as QuickBooks or Xero, to your bank account. It also stands out for the speed of the opening process of the account. In just a few hours a business will be able to have it. Finally, it allows corporations to deposit cash and checks despite being an exclusively online bank.

Both self-employed and limited liability companies can request the opening of a business account with this entity. Nonetheless, Monzo demands that its headquarters must be in British territory.

Revolut

Revolut is one of the most recognized digital banks worldwide and also offers business accounts. These stand out for supporting more than 25 different currencies and for offering integration with accounting applications.

Unlike Monzo, Revolut’s business account does not allow depositing checks or cash. It does not offer free plans neither, but the base plan has a rate of GBP 10 per month.

Only companies registered within the Companies House can contract a business account with this bank, so sole traders must resort to options for individual clients. In addition, public sector enterprises and charities will neither be able to open a business account with Revolut.

Starling

Starling is another of the most recognized online banking institutions in the UK. Just like Monzo, it offers a free account and, to unlock certain features, it will be necessary to pay a monthly fee (in this case, 7 GBP per month). It also allows to deposit checks and cash by mail or through its application.

Its main characteristic is that it allows limited liability partnerships, in addition to limited enterprises and sole traders, to open a commercial account. On the other hand, they request that directors who will have access to the account to live in the UK.

Zempler

Like Starling and Monzo, Zempler offers its trading accounts at no additional cost. However, to access extra options, certain fees, of 9 GBP or 19 GBP per month, will be charged. It also has integration with accounting tools, although, additionally, it includes invoice creation and cash flow control apps.

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