Monese is one of a growing number of companies that are expanding from personal banking products into business ones too. These challenger banks have transformed the way we think about finance. They’re offering convenient, easy-to-use products with low fees. This can only be good news for consumers, who now have more choice than ever. We take a detailed look at the Monese Business Account to see how it compares.
Quick Look – Pros & Cons
Weighing up the positive and negative points of a product
can often give a snapshot of whether it’s right for you. Below, we’ve
highlighted some of the points we liked and disliked about the Monese Business offering:
Incredibly easy to register and open an account.
Allows you to manage your business and personal
finances all in one place.
Has some useful budget management features.
Good exchange rates on foreign transactions.
You need to have a Monese personal account to
apply for a business one.
You have to have a business that’s registered in
the UK to be eligible.
You’re only allowed six free cash withdrawals
Some traditional banking features aren’t
Overall, this is quite a balanced set of pros and cons.
Whether or not this is the right account for you depends on a few factors, as
What is Monese Business?
Monese launched its first banking product in the UK back in
2015. They were the first company in the country to offer a 100% mobile current
account. All customers need to do in order to qualify for an account is to
provide proof of ID, and address. The bank has gained a lot of traction since,
thanks to their simple approach to finances. In 2018, the company announced
that they were launching their business accounts.
Again, Monese’s focus with this product is to provide a
quick and easy way for companies to open an account. It’s entirely mobile-based
and can be set up in minutes.
How Does Monese Business Work?
It’s easy to get started with a Monese Business account. The
first thing you’ll need to do is download the Monese App on your mobile phone.
From here, you can complete the registration process and upload your ID for
verification. The whole experience takes just a few minutes, and all you need
are details of your UK-registered company and a passport. Unfortunately,
although you can open an account from anywhere in the world, you have to have a UK business. You also have to have a Monese personal UK and
Euro IBAN account too.
Once your account is open, you can start managing your
business and personal finances through the app. You’ll get sent a Monese
Business Mastercard too, allowing you to make purchases and withdrawals just
about anywhere in the world.
In their blog post on the launch, the Monese head of Content & Community outlined plans for the service to grow and expand. It seems that there are plenty of features that are in the works. Business banking is becoming increasingly diverse, so it’ll be interesting to see where Monese takes its service.
What Features Does Monese for Business Have?
One of the criticisms that we’ve had of other similar
services is that there’s not always enough features. Customers will often have
to have additional accounts to get the full banking experience. So, how about
Monese? Below, we’ve outlined the main features that come with a Monese
easy to open. It takes just a few minutes to sign up, and you get full
access within a few hours.
payments are free. You don’t have to pay any fees when making local
international transfers. Cross-border payments cost fairly little, charged
at the Mastercard exchange rate plus 0.5% of the transaction value (minimum of
contactless business card. A free Mastercard that you can use just about
There are over 40,000 locations in the UK where you can make cash deposits,
although fees apply.
in ten languages. Useful, although you still need a UK business to open an
This is a fairly comprehensive set of features, although
there are some fees involved. And, if you need to deposit or issue cheques, you
can’t do so with this account.
What Are the Fees for Using Monese Business?
Monese isn’t free. Unlike some other competitors, there’s
not even a free, limited-feature version. The monthly cost of a Monese Business
account is £9.95. Although this isn’t too steep, it’s not quite the
comprehensive service that some businesses need. There are other fees
associated with the account too:
After your six free ATM withdrawals, you’ll have
to pay £1 per following withdrawal.
Paying money in at the Post Office costs £1 per
Paying money in using PayPoint costs 2.5% of the
value, with a minimum of £1.
Replacement cards (after your first one) cost
International currency exchange costs the Mastercard
wholesale exchange rate plus 0.5% of the transaction value. This applies to
both ATM withdrawals and app payments.
Overall, the fees are competitive but not the lowest we’ve
seen. If you make a lot of cash withdrawals and deposits, the amount could soon
add up. The same applies to those who make a lot of international payments,
although these fees are actually quite reasonable.
Who is Monese Business For?
Monese Business accounts are aimed primarily at small and
medium-sized companies. There is a £50,000 limit on the standard account, and a
£100,000 limit on the Plus account (which costs the same and has the same set
of features). Larger businesses will find these amounts restrictive. It’s also
an account that’s only for UK-based companies.
Given the monthly fees, Monese is really only suitable for
those who are going to make full use of all the features. If your company is
only making a few transactions each month, there are free accounts from other
providers. Conversely, if you make a lot of international transfers and
payments, the rates that Monese offer are incredibly competitive, even for the
Eventually, Monese hopes to launch an EU business account.
This could be hugely beneficial for those who deal in the UK and the EU, as
you’ll likely be able to easily switch between the two.
What are the Drawbacks of Using Monese Business?
Monese isn’t perfect (few banks are), and there are certainly
some downsides to the service. Perhaps the most notable is that, even with the
monthly fee, it’s not a complete banking service. You can’t deposit and issue
cheques, for example. Although this isn’t all that common, some businesses
still rely on the feature. If you make a lot of cash withdrawals, you’ll also
end up paying for all but the first six each month.
Although the monthly fee is quite reasonable, there are
other providers offering free accounts. Smaller businesses making only a few
transactions each month would be better off choosing one of them. Also, if
you’re primarily living in the UK but your business is based overseas, you’re
not eligible for a Monese account.
So, it’s not a totally flawless experience, but depending on
your business circumstances, this may not matter.
How Safe is Monese for Business?
For most challenger banks, security is one of the most
important aspects of their business. Monese is no exception. All money that you
deposit into your account is ring-fenced and covered by FCA regulation. This
means that it’s protected no matter what happens to Monese, and it’s not
invested or loaned out.
The app also has tight security on it. Features such as biometric
unlocking and backend encryption keep your data and your money safe. Everything
is controlled by the app, which is also protected by a PIN code. Each time a
transaction is made on your account, you get a notification on your phone.
Overall, it’s a safe and secure way of business banking.
Monese Business Verdict
Monese has built up a stellar reputation in the UK over the
last few years. Because of this, we were excited by the prospect of their
business account, and we’re not disappointed. There are some really useful
features on show, making it a good choice for most small and medium-sized
businesses. The monthly fee, although a little disappointing, isn’t too high
and the features mostly justify it.
There are a few niggling problems. Limited cash withdrawals,
the lack of ability to deposit cheques, and fees for cash deposits aren’t
ideal. However, for those who don’t need to worry about those, the Monese
Business account is a very good choice.