Atom Bank vs Monzo for business banking – Features, fees, pros and cons compared

Last updated on 29 August 2023

In today’s digital era, traditional brick-and-mortar banks are facing stiff competition from innovative mobile banking solutions. Atom Bank and Monzo are two prominent players in the UK banking landscape, offering digital banking services tailored specifically for businesses.

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If you’re a UK business owner looking for a modern banking solution, it’s essential to compare Atom Bank vs Monzo to determine which one suits your needs best. Let’s delve into the pros, cons, key differences, costs, and other important considerations for both banks.

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Atom Bank vs Monzo

FeaturesAtom BankMonzo
Account SetupSimple and quick processHassle-free and easy account setup
Interest RatesCompetitive rates on business savingsN/A
Range of ProductsRelatively limitedComprehensive product offerings
Physical BranchesDigital-only bank with no branchesN/A
International ServicesAvailable, but may be limitedInternational payments, but limited
Cash DepositsN/ASelected PayPoint locations
Expense ManagementInnovative features for financial insights and advicePowerful expense management tools, receipt scanning, integration with accounting software
Pricing PlansVaries based on services and productsTransparent and flexible pricing plans
IntegrationsIntegration with popular accounting software and financial management toolsIntegration with accounting software and financial management tools
Customer SupportPhone, email, and in-app chatPhone, email, and in-app chat support
ScalabilityPotential for growth and scalabilityPotential for growth and scalability
Atom Bank vs Monzo features compared

Please note that the information provided in the table is subject to change, and it’s always recommended to visit the respective bank’s website or contact their customer support for the most up-to-date and detailed information on their features, services, and pricing.

Statistics

  1. Atom Bank:
  • Atom Bank was founded in 2014 and launched its services in 2016 as the UK’s first fully digital bank.
  • As of 2021, Atom Bank had attracted over £2 billion in deposits from retail and business customers.
  • Atom Bank has consistently been recognized for its innovation and digital banking solutions, receiving awards such as the “Best Mobile App” at the British Bank Awards in 2020 and 2021.
  • The bank has a customer satisfaction rating of 4.5 out of 5 based on Trustpilot reviews, indicating a high level of customer satisfaction with their services.
  1. Monzo:
  • Monzo was founded in 2015 and gained popularity through its personal banking services before expanding into business banking.
  • As of 2021, Monzo had over 5 million customers in the UK, including both personal and business account holders.
  • Monzo has raised significant funding over the years, with total funding exceeding £500 million as of 2021.
  • The bank has been recognized for its user-friendly app and customer-centric approach, winning awards such as “Best British Bank” at the British Bank Awards in 2018 and 2019.
  • Monzo has a strong online community and actively engages with its users for feedback and product development through its community forums and beta testing programs.

These statistics provide an overview of the growth, recognition, and customer base of both Atom Bank and Monzo, showcasing their impact and success in the digital banking landscape.

Atom Bank

Atom Bank is a digital-only bank that aims to provide a streamlined banking experience to businesses. Here are some key advantages of choosing Atom Bank for your business:

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Pros

  • Competitive interest rates: Atom Bank offers highly competitive interest rates on its business savings accounts, providing potential gains for your business’s surplus funds.
  • Intuitive digital platform: Atom Bank’s user-friendly digital platform enables seamless navigation and easy management of your business accounts, allowing you to carry out transactions, monitor balances, and access essential banking services effortlessly.
  • Innovative features: With Atom Bank, you can expect innovative features such as personalised insights, spending categorisation, and AI-driven financial advice, empowering you to make informed financial decisions for your business.

However, Atom Bank does have a few drawbacks that you should consider:

Cons

  • Limited range of products: Atom Bank’s product range for businesses is relatively limited compared to traditional banks, potentially restricting your options for specific financial services.
  • No physical branches: As a digital-only bank, Atom Bank doesn’t have physical branches. While this allows for convenience, it may pose challenges if you prefer in-person support or cash-based transactions.

Monzo

Monzo, another popular digital bank in the UK, offers comprehensive business banking solutions. Let’s explore the advantages of choosing Monzo for your business:

Pros

  • Easy account setup: Monzo’s hassle-free account setup process allows you to get started with business banking quickly, avoiding lengthy paperwork and bureaucratic hurdles.
  • Transparent fee structure: Monzo adopts a transparent fee structure, making it easier for businesses to understand and plan their banking costs effectively. Moreover, their pricing plans offer flexibility to suit different business sizes and needs.
  • Expense management tools: Monzo’s business accounts come equipped with powerful expense management tools, including automated categorisation, receipt scanning, and integration with accounting software, making it simpler to track and manage your business expenses.

However, Monzo does have some considerations to bear in mind:

Cons

  • Limited international services: While Monzo offers international payments, its services in this area may be limited compared to traditional banks. If your business conducts frequent cross-border transactions, you may need to assess whether Monzo’s offerings meet your requirements.
  • Relatively new to business banking: Monzo initially gained popularity through its personal banking services and later expanded to cater to businesses. As a result, some businesses may prefer banks with more established business-focused expertise and services.

Atom Bank vs Monzo – Key differences

To make an informed decision, it’s crucial to understand the key differences between Atom Bank and Monzo:

  1. Target audience: Atom Bank primarily targets small and medium-sized enterprises (SMEs) and entrepreneurs, while Monzo caters to a broader range of businesses, including freelancers and larger organisations.
  2. Cash deposits: Unlike Atom Bank, Monzo allows cash deposits through selected PayPoint locations, which can be advantageous if your business deals with physical cash.
  3. Security measures: Both Atom Bank and Monzo implement robust security measures to protect your business finances. It’s essential to review their security protocols and decide which bank aligns better with your security requirements.

Atom Bank vs Monzo – Costs and fees

Costs are a crucial factor when choosing a business banking provider. Here’s an overview of the costs associated with Atom Bank and Monzo:

  1. Atom Bank: Atom Bank offers a range of business banking products with varying fees. For example, their business savings accounts may have competitive interest rates but minimal fees. However, specific services, such as international payments or overdraft facilities, may attract additional charges. It’s advisable to review Atom Bank’s fee structure in detail to ensure it aligns with your business’s financial requirements.
  2. Monzo: Monzo adopts a transparent and flexible pricing structure for its business banking services. They offer different pricing plans tailored to businesses of varying sizes and needs. The plans may include features like unlimited transactions, international payments, and other perks, with fees varying accordingly. It’s recommended to assess your business’s banking needs and compare them against Monzo’s pricing plans to choose the most cost-effective option.

Atom Bank vs Monzo – Other factors

Besides costs, there are additional considerations to keep in mind when comparing Atom Bank and Monzo for business banking:

  1. Integrations: Both banks provide integration capabilities with popular accounting software and financial management tools. It’s essential to confirm whether their integrations align with the systems you currently use or plan to implement for your business.
  2. Customer support: Evaluate the level of customer support provided by Atom Bank and Monzo. While digital banks often offer support through phone, email, and in-app chat, it’s worth considering your preferences for accessing assistance and the responsiveness of their customer service teams.
  3. Growth potential: Assess the scalability and future potential of the banking services offered by Atom Bank and Monzo. Consider your business’s long-term goals and whether the chosen bank can accommodate your evolving needs as you expand and develop.

Atom Bank vs Monzo – Verdict

In conclusion, both Atom Bank and Monzo offer unique advantages and considerations for UK businesses.

Atom Bank provides competitive interest rates and an intuitive digital platform, while Monzo offers easy setup, transparent fees, and robust expense management tools.

Understanding the key differences, costs, and other considerations will help you make an informed decision that aligns with your business’s specific requirements.

Take the time to evaluate the features, services, costs, and overall fit of each bank to determine which one will best serve your business banking needs.

Atom Bank vs Monzo – FAQ

Can I open a business account with Atom Bank/Monzo if I already have a personal account with them?

Yes, both Atom Bank and Monzo allow you to open a separate business account even if you already have a personal account with them. They treat personal and business accounts as separate entities.

Do Atom Bank and Monzo provide business loans or overdraft facilities?

Atom Bank offers business loans and overdraft facilities, while Monzo currently does not provide business loans. However, Monzo offers a feature called “Business Borrowing” that allows you to access lending options from third-party providers through their platform.

Are Atom Bank and Monzo regulated and secure?

Yes, both Atom Bank and Monzo are regulated by the Financial Conduct Authority (FCA) and are covered by the Financial Services Compensation Scheme (FSCS). They employ robust security measures to protect your business’s financial information and transactions.

Can I make international payments with Atom Bank and Monzo?

Both Atom Bank and Monzo offer international payment services. However, it’s important to note that the availability and specific features of international payments may vary between the two banks. It’s advisable to review their offerings to ensure they meet your business’s international banking needs.

Can I deposit cash with Atom Bank and Monzo?

Atom Bank does not allow cash deposits as it is a digital-only bank without physical branches. On the other hand, Monzo enables cash deposits at selected PayPoint locations. If your business deals with cash transactions, you may find Monzo’s cash deposit feature more convenient.

Can I integrate Atom Bank and Monzo with accounting software?

Yes, both Atom Bank and Monzo offer integration capabilities with popular accounting software and financial management tools. This allows you to streamline your financial processes by automatically syncing transactions and data between your bank accounts and accounting software.

It’s important to note that these FAQ answers are based on general information and may be subject to change. For the most accurate and up-to-date information, it’s recommended to visit the respective bank’s website or contact their customer support directly.

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Reviewed by , Managing Director

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