Monzo finally breaks into business banking with the launch of two SME accounts

By Oliver Smith on Tuesday 17 March 2020

Digital Banking

The next stage in Monzo's freemium strategy?

Monzo finally breaks into business banking with the launch of two SME accounts
Image source: Monzo Business.

After over a year of private testing, digital bank Monzo has at long last launched its current account for businesses.

The move comes amid escalating competition in the SME banking sector, with rivals Starling and Tide boosted by huge cash injections from the Banking Competition Remedies fund last year.

Monzo’s offering comes in two halves, a free Business Lite account which includes a basic business account, receipt scanning and web access, and a £5/month Business Pro account that adds tax pots for automatically saving towards a tax bill, invoicing, multi-user accounts and more.

“We’ve heard how difficult it is to find a business account that delivers what businesses need—and have also heard over and over that it can take days, and even weeks, to get an account up and running,” said Monzo CEO Tom Blomfield today on the launch. 

“Companies need stress-free banking that just works, so they can focus on what's important—growing their business.”

Monzo has also partnered with accountancy giant Xero for a 6-month free accounting subscription for new Xero customers, available only for its Business Pro customers.

The digital bank says it has been building and testing its Business accounts with over 2,500 business owners over the last 12 months, who it’s worked with to develop the account.

Whether SME banking needs yet another digital bank to wade in, we’ll have to wait and see, but given the current economic crisis facing businesses they’ll likely savour any help they can get right now.

Read more: Here are the BCR’s 3 options for Metro Bank’s returned £50m

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