Shortlist 3 Top Digital Banking Platforms for Your Small Business (From 12)

Running a small business involves a lot of decision-making. One key decision is determining the best banking platform. With the influx of digital banking platforms, you have more options than ever, but which will suit your company the best? This comprehensive guide will review twelve leading platforms, tailoring the information for a broad commercial audience and focusing on factors that reduce risk and bolster the legal foundations of your business dealings.

Embrace the Digital

Digital banking platforms, also known as Authorised Payment Institutions (APIs) or e-money institutions, promise a new approach compared to their conventional counterparts. Quick to set up and operated entirely from your smartphone, these innovative platforms offer digital services that cater to different business sizes and needs.

Understanding the Digital Players

We’ve analysed the top 12 digital banking platforms and reviewed their features and pricing. Here’s the ordered list:

Note We have been so bold as to not include links in this article. This is intentional so that you read the whole thing, before going away and researching your shortlist of 3.

• ANNA
• Revolut
• Starling Bank
• Tide
• Monzo
• Airwallex
• Coconut
• Mettle
• CashPlus
• Countingup
• SumUp
• CardOneMoney

ANNA

ANNA equals smart invoicing. It chases outstanding payments for you and provides VAT, corporation tax, and self-assessment tax return deadlines. Packages are adjustable, with pay-as-you-use, £14.90 monthly and £49.90 monthly options (plus VAT).

Revolut

Revolut is ideal for businesses involved in international trade, offering the ability to hold, exchange, and transfer in over 150 currencies at favourable rates. Freelancers can choose from the free account or professional accounts at £7 and £25 per month.

Starling Bank

Starling Bank is friendly to the self-employed or limited company owners with multiple owners, should they meet the minimum trading requirement of 18 months to apply. The account aligns well with accounting tools like Xero, FreeAgent, and Quickbooks. They offer no monthly charge but have useful add-ons at small fees for extra functionality.

Tide

Tide offers real-time business forecasts and actionable suggestions to improve cash flow, with accounts ranging from Free (£0), Plus (£9.99), Pro (£18.99) to Plus Cashback (£49.99). It shines with free invoice templates and Xero and QuickBooks integrations.

Monzo

Ideal for sole traders or Ltd directors, Monzo allows you to set aside earnings for taxes every time you’re paid. It integrates with Xero, FreeAgent, QuickBooks and offers two pricing tiers: Lite (basic/free) and Pro (£5 a month).

Airwallex

Airwallex presents a welcome package for domestic and international business accounts, with company cards and expense management. It offers instant access to multi-currency accounts. No setup cost or monthly fees apply, just a small currency conversion fee.

Coconut

Coconut successfully combines banking, bookkeeping, invoicing, and tax management into a single platform. Notably, it connects to over 25 different banks including Barclays, Lloyds, and Starling and charges a flat £9.00 monthly fee, VAT inclusive.

Mettle

Mettle, an arm of NatWest, is an exciting option if your business is in the early stages. Qualifiers are sole traders or limited companies with up to two owners but with balances below specified thresholds. Mettle is free to use and join.

CashPlus

CashPlus makes account management easier and allows for quickly adding up to 20 additional business expense cards for your employees. Its monthly fee is £9.

Countingup

Countingup is a new player in the market that offers real-time profit and loss reports, tax estimates and enables customised invoices. Its fees range from £3 for monthly deposits of £0-£750, up to £18 a month for unlimited deposits.

SumUp

SumUp combines all of your payment needs into one convenient platform, from instant invoicing to fast withdrawals. It’s free, with only withdrawal charges to consider.

CardOneMoney

CardOneMoney approaches business owners of all types, like sole traders, limited companies or partnerships with a turnover of up to £2m. It costs £12.50 per month with an initial application fee of £55.

Bonus: A Legal Perspective

Adding to what’s not present in the original article, it’s essential to consider the legal foundations of the platforms. Most notably, whether they’re FSCS covered (Financial Services Compensation Scheme) or adhere to the FCA safeguarding requirements (Financial Conduct Authority). Businesses might want to lean towards platforms that offer these kinds of financial security measures.

Conclusion

Choosing the right digital banking platform for your business depends on multiple factors such as the size of your business, the functionality you require and, importantly, the platform’s legal credentials. Digital banking platforms offer a quick, convenient and innovative alternative to their traditional counterparts, which could bring numerous benefits to your business operations.

In the end, improving the legal security and reducing risks in your business dealings should remain top priorities. Using our AI Legal Assistant at Genie AI could bring further value to your efforts in drafting, reviewing, negotiating, and signing legal agreements. Don’t miss out on this innovative platform as you take the next step in your business journey!

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