Best Bank Accounts Online for Easy Financial Management in the UK

Technology has immense power in the way it shapes economies around the world. Yet, although several industries have accepted this truth, traditional banks, credit unions, and financial institutions have fallen behind.

However, business banking is transforming, and the global economy has seen the rise of neobanking solutions like Tide and Starling Bank that brought changes to consumer demands, banking systems, etc. Through these neo-banking solutions, traditional banks can incorporate advanced technology that will force them to embrace a digital transformation strategy. 

According to GMI, the market size of neobanking surpassed $45 billion in 2021 and is projected to increase at a compounded annual growth rate (CAGR) of over 45% from 2022 to 2028. The evidence can be seen already, as Tide managed to raise over £160 million since 2016 in 10 fundraising rounds, the last one being approximately £86 million in a Series C funding round. 

These stats show the rise of neobanking solutions. We will compare Neobanking with traditional banking to help you with the most suitable app-only business banking solutions. In addition, we will also look at some of the best online banks to save you a bit of research.

Neobanking Vs. Traditional Banking

Traditional banks like Barclays, Metro, etc., do not use AI technology as part of their business banking strategy. Instead, traditional banks follow an omnichannel approach to business banking services, including physical banking through brick-and-mortar branches and ATMs and digital banking like mobile banking. 

In contrast, Neobanks are incorporating new technology in their banking system to offer various personalisation services to customers. Neobanks provide different services to consumers of retail or small-to-medium businesses. These services include customer acquisition, remittances, money transfers, utility payments, etc. 

Neobanking follows a design thinking approach to the business banking sector by modifying its goods and services to make banking simple and convenient for the end user. 

Advantages of Neobanks

Many globally recognised businesses spend long, tiresome hours, payment schedules, and disbursement procedures that follow traditional business banking technology. As a result, due to problematic software and complicated infra systems, businesses are overspending. 

In comparison, neobanks are entirely digital, and the end consumers can enjoy banking from their office desks. Here are some benefits of neobanks.

Neobanking Account Creation Is Simple and Convenient

With neobanking, opening a new bank account is easy since the process is simplified. Users won’t need to wait long hours to open an account. Moreover, there are fewer complications with account opening through neobanking than traditional banking due to the tedious documentation.

Neobanking Interface is Simple and Easy to Use

The primary goal of neobanking is to achieve greater customer satisfaction. With neobanking, users can free themselves from issues like lagging mobile apps, slow-loading internet banking websites, etc. Neobanking consists of apps that are user-friendly, efficient, and effective. They respond to customers’ queries immediately and are well organised to fulfil the customer’s needs. 

Efficient International Payments

Traditional banks usually don’t offer users a debit card for international payments. However, some conventional banks allow users to possess an international debit card, for which they need to go through a proper procedure. 

In contrast, with a neobanking card, the end consumer will not need to worry about it. However, the constant currency rates will affect when the users employ the debit card to make international or travel transactions. 

Neobanking Reporting Is Effective

Another upper hand of neobanking includes instantaneous transactions. As a result, the transaction data is added efficiently and effectively to ensure that the users know up-to-date information on their financial status.

You can use a neobanking app further to track all transactions and payments. This feature enables you to see a breakdown of your spending and revenue. Moreover, through the app, you can see a savings target according to your financial circumstances. Hence, you can better manage your finances through updated information.

Best Neobanking Business Account Solutions

Choosing a new business bank account is vital for any new business or startup. You’ll need a scalable and flexible banking service if you don’t want to change your bank after a few years. Hence, new businesses must choose the best neobanking business account solutions that match their requirements and preferences. 

The following section will look at the best neobanking business accounts that startups can choose.

Starling Bank

Starling Bank is an award-winning company recognised as the best all-around free business account. It is a fully licensed bank in the UK that provides 85,000 GBP coverage by the Financial Services Compensation Scheme (FSCS). The business account of Starling Bank is comprehensive for a standard free account. In addition, the customer service department is available around the clock to answer business owners’ queries. 

Starling Bank is ideal for sole traders and companies that operate their businesses in the UK. Businesses can send money around the country and receive GBP in their account. Moreover, companies can make GBP payments and withdraw cash from ATMs free of additional costs. Businesses will incur 0.4% for each transaction for sending money outside the UK.

Businesses can also choose add-ons to their account by paying a fee. For example, creating and sending invoices through the app will cost £7 per month. For £2, you can get a European IBAN and receive money in Euros and an American one to carry out payments in the US for £5.

Revolut Business

Revolut is another leader in the online financial services sector in the UK since the multi-currency accounts cost less than its competitors. Moreover, Revolut has innovative features like budget analytics software, making it more unique. If your business is located outside the UK, you can easily open a neobanking business account with Revolut. 

With Revolut, many sole traders, SMEs, and other businesses can get paid globally, manage their team’s expenses, and exchange currencies without incurring fees. In addition, since Revolut is registered with the FCA, many businesses can get deposit insurance and products comprising corporate cards and loans. The business account at Revolut is similar to a checking account used to manage the expenses a business incurs and the customer payments. 

Revolut has various account offerings. With a standard account, businesses won’t pay anything upfront, and there are no monthly fees. Moreover, companies will get 5 free local payments.

Metal cards will incur £49, which cannot be waived off. With a growing account, businesses must pay £25 to get 100 free local and 10 international payments. Also, they can enjoy a £10,000 allowance for foreign exchange. 

With a scale account, businesses must pay £100 per month, and in return, they will get 1000 free local payments, 50 free international payments, and a £50,000 allowance for foreign exchange. With an enterprise account, companies will get custom allowances specific to the needs of the business. 

Wise Business

Wise is a money transfer operator in the UK that provides the best money transfer services on the market. Many organisations worldwide enjoy Wise’s legendary lowest–in–the–world international money transfer costs. Moreover, Wise offers a Business Bank Account at a lower price, and businesses can manage their finances in more than fifty currencies globally. 

Businesses can withdraw their money from eCommerce stores in up to ten currencies. Through Wise, companies can convert their revenue in foreign currency to their local currency at industry-set rates. Hence, they can save several thousand GBPs when opening a business account at traditional banks.

Through Wise Business paid plan, businesses can enjoy a list of features by paying a one-time fee of £45. After paying this fee, some of the best Wise international features businesses can enjoy include withdrawing money from platforms like Shopify and Stripe. In addition, companies can also register Direct Debit to their account. 

What More Can You Do for Efficient Financial Management

The business bank accounts on the market provide many other advantages, such as free access to accounting software, which will help you manage finances effectively. Managing finances is one side of the coin. The other is finding funds. Debite comes into the picture here to help you provide the finances to manage. In addition, Debite can also provide you with the tools for your business’s financial operation.

Debite is a dynamic financing platform that helps companies have funding to grow efficiently and effectively. With a Debite Business corporate card, companies can reach up to £250,000 credit and have built-in instalments that enable up to a 12-month repayment period. So, through Debite’s instalment plans, companies can get a flexible credit limit substantially higher than traditional banks’ offerings.

Managing your expenses will be much easier with the help of a 4% cashback reward, extended repayment periods, and a high credit limit.

Several startups face difficulty finding funding in stage A, but with Debite’s financial assistance, these companies can pass the stage and grow without dependency on another institution or investor. As a founder-led business, we know at Debite that it’s a challenging journey to start an innovative company and reach high growth rates. With Debite helping you on the road to lower churn and expand your runway, you will feel financially more secure and at ease. So you can focus more on what makes your company achieve its goals.

Whatever bank account you choose, consider applying for Debite today. Contact us if you have questions so we can show you how Debite could transform your business.

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