As the future of banking changes and new ‘Challenger Banks’ or ‘Neobanks’ begin to emerge, Team 4 has taken a look into what solutions these new banks can offer to businesses. Figures show that there is now a decrease in online banking as mobile banking has become more popular, allowing businesses to bank on the go and having all the data they need in the palm of their hand.

Photo by Oliur on Unsplash

What are Neobanks?

Effectively this is just a term for the ‘new kids on the block’ as they challenge the larger, traditional banks – ‘The Big Four’. Some of the more known neobanks are brands such as Monzo or Starling Bank. These banks are online only solutions and most only operate using a mobile app (although a few have released a desktop version).

What can Neobanks offer businesses?

Most of these banks are free to open and don’t have any monthly fees for standard, day-to-day banking needs. However, if you want to start utilising the special features, such as basic bookkeeping, then you’ll need to pay a little extra. Monzo, for example, offer a free ‘Lite’ version as well as a ‘Pro’ Version for a monthly fee. The pro version then offers some simple bookkeeping features such as invoicing. However, a new challenger bank called Mettle, which is Natwest’s offering to the neobank world, includes these simple bookkeeping features in their free business account.

Monzo, Starling and Mettle are mostly catered to small and limited businesses, however N26 are a neobank that is a solution purely for free-lancers and the self-employed. For larger companies you have Revolut. They charge on a ‘Pay As You Grow’ basis, so you can select which package would suit your business depending on its size, although they don’t yet have the accounting features that other offer.

So, what does this mean for accounting software?

All of the neobanks we’ve mentioned offer some form of integration with current cloud based accounting software, such as Xero, Quickbooks and FreeAgent; Revolut even offers custom integration options and Tide seems to be one of the few that can link to Sage. But since so many of them also have basic bookkeeping features as standard or as an add-on, it could lead to changes in accounting software; at least for small businesses and sole traders.

Perhaps accounting software companies will work in close partnership with these new banks, just like FreeAgent does with Mettle. Or it could mean that in the future, you’ll be able to have a full accounting and banking solution all through your mobile banking app.

As bookkeepers, we always make sure that we stay up to date with this new technology so that we can make sure that we are offering the best service for your business.

If you’d like our help or advice in looking at the best software for your company, then we are always happy to help. Perhaps you’re tired of being overloaded with receipts and invoices and would like Team 4 to tackle these tasks head-on.

Give us a call or drop us an email – we would love to hear from you!

East Sussex Branch

01825 763378

West Sussex Branch

07375 238352


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