Metro Bank – Business Current Accounts’ Review

Metro Bank presents itself as a significant player in the financial arena, focusing on serving the needs of small businesses, start-ups, sole traders, charities and limited companies. This positioning helps it cater to specific demographics that seek both the personal touch of in-store services and the convenience of digital banking solutions.

In an era where the financial sector is increasingly moving online, Metro Bank’s approach stands out. It merges the traditional with the modern, a strategy that resonates well in today’s market. Interestingly, by June 2022, over 2.6 million customers had shifted towards using challenger banks, showcasing the growing appeal of alternatives to traditional banking institutions.

This review aims to shed light on Metro Bank’s business current accounts, highlighting key aspects such as features, pricing, and the potential advantages and drawbacks. Understanding these elements is crucial for any business in search of a banking partner that aligns with their needs and aspirations.

So, let’s delve into the details and explore whether Metro Bank is the ideal fit for your business.

Metro Bank Business Bank Account

Monthly Fee

£0

Bank Transfers

30p

30 Free per month

Card Purchases

30p

30 Free per month

Overdraft

Yes

FSCS Protection

No

Our Rating

Accessibility

Access your Metro Bank account via the web or the mobile app

See Deal

On Metro Bank’s Website

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Eligibility Criteria

– You must be over 18 years’ old.
– Your business must not exceed £2mil for this account.
– You must be one of the following: sole trader, limited company, limited guarantee, or limited liability partnership.
– Charities or trusts are not eligible.
– Businesses not based in the UK are excluded.

Our Verdict

Metro Bank emerges as a compelling choice for UK-based small businesses, startups, sole traders, and limited companies looking to navigate the complexities of financial management. It uniquely positions itself in the banking sector by offering a blend of traditional, in-person banking services along with the efficiencies of modern digital banking. This approach not only caters to a wide demographic but also sets it apart in a competitive market that’s witnessing a significant shift towards challenger banks.

Metro Bank’s emphasis on accessibility, customer service, and a range of business banking solutions underscores its commitment to supporting business growth and financial management. With features such as Local Business Managers available in every store, a user-friendly app rated highly on Apple’s UK App Store, and simple, transparent pricing, Metro Bank presents a robust package for businesses aiming for both growth and financial efficiency.

Pros and Cons

Pros:

• Accessibility and Convenience: With branches open 7 days a week and a high rating for its app, Metro Bank offers outstanding accessibility and convenience for its business customers.
• Tailored Business Support: The availability of Local Business Managers in every store to provide dedicated support underscores Metro Bank’s commitment to tailored customer service.
• Transparent and Simple Pricing: A no monthly fee option for balances above £6,000 and 30 free UK transactions per month make it an attractive option for small businesses mindful of costs.
• Digital Efficiency: The integration of digital tools like ‘Invoice It’ for quick payments, alongside an easy-to-navigate online banking platform, enhances operational efficiency for businesses.

Cons:

• Limited to UK-Based Businesses: Metro Bank’s services are specifically designed for UK-based businesses, limiting its accessibility for international enterprises seeking UK banking solutions.
• Balance Requirement for Fee Waiver: The requirement to maintain a £6,000 balance to avoid monthly fees might not be feasible for all startups or small businesses with fluctuating cash flows.
• Overdraft and Loan Eligibility: While the potential to borrow up to £60,000 is beneficial, the actual eligibility criteria might be stringent, possibly limiting access for newer or less established businesses.

Metro Bank at a Glance

Item	Metro Bank Details
Bank Accounts	Business Current Accounts 1. Business Bank Account – For SMEs, startups, sole traders and limited companies with a turnover of up to 2mil). 2. Commercial Current Account – For businesses with a turnover above £2mil). 3. Community Current Accounts – For clubs, societies and charities). 4. Foreign Currency Account – For businesses looking to send money abroad regularly. 5. Insolvency Practitioner Account – Designed specifically for insolvency professionals. Business Deposit Accounts 1. Business instant access deposit account 2. Business fixed term deposit account 3. Business notice account 4. Community instant access deposit account 5. Community fixed term deposit account 6. Client premium deposit account 7. Flexible client term deposit account
Pricing	No monthly fee for the Business Bank Account with a balance above £6,000. Various fees for international payments, overdrafts, and other services. Specific charges for Commercial, Community, and other specialised accounts apply.
Overdraft	Depending on eligibility you may be able to borrow up to £60,000 with their Business Overdraft.
Ease of Use	User-friendly online, mobile banking, and in-store services. Digital tools like ‘Invoice It’ and integration with accounting software.
Safety/Security Aspects	Protected by the Financial Services Compensation Scheme (FSCS) up to £85,000. Secure online banking with fraud monitoring.
Customer Support	24/7 support via phone and online. In-store support and dedicated Relationship Managers for personalised service.
Reviews	Metro Bank currently has 4,836 Trustpilot reviews at the time of writing this article with a rating of 2 out of 5 stars.
Eligibility Criteria	Must be 18+ and a UK resident. Business turnover and/or balance sheet size requirements vary by account type. Additional criteria for specialised accounts.
Additional Information	Offers benefits like free giant cheques for community accounts, business debit card discounts on travel and hotels, and rapid account opening in-store.

Who Should Use Metro Bank’s Business Banking Services? (And Who Should Not)

Metro Bank offers a comprehensive range of business banking accounts designed to cater to the needs of a wide spectrum of businesses and organisations. By identifying which groups will benefit most from their services, you can make an informed decision about whether Metro Bank is the right choice for your banking needs.

Ideally Suited For:

• Start-ups, Sole Traders, and Small Businesses: Metro Bank provides a Business Bank Account that supports the growth of smaller enterprises with features like no monthly account fee (subject to maintaining a minimum balance) and access to a Business Overdraft.
• Community Groups and Not-for-Profits: The Community Current Account offers 200 fee-free transactions per month, making it a great option for organisations with modest banking needs.
• Partnerships and Limited Liability Partnerships (LLPs): These entities benefit from tailored services, including easy account opening processes and the ability to manage accounts in-store or online.
• Larger SMEs and International Businesses: The Commercial Current Account is specifically designed to meet the complex needs of high turnover businesses, offering dedicated Relationship Managers and support for international trade.
• Insolvency Practitioners: With an account specifically created to hold funds in trust, Metro Bank caters to the unique requirements of insolvency professionals, providing the tools and support needed for effective fund management.

Not Suitable for:

1. Individuals Under 18 Years of Age: The primary account holder and any additional signatories or beneficial owners must all be at least 18 years old.
2. Non-UK Residents (with exceptions): Sole traders or sole signatories must be UK residents. For businesses with multiple signatories, directors, or beneficial owners, at least half of them must be UK residents.
3. Businesses Owned by Parent Companies: The account is not available to businesses that are controlled or owned by a parent company, indicated by holding the majority of the voting stock.
4. Applicants Without Proof of Identity or UK Address: Essential documentation includes proof of identity and proof of UK address for everyone involved in the account opening process. Failure to provide these documents disqualifies the application.

Products and Features: Metro Bank Business Banking Services

Metro Bank offers a comprehensive suite of business banking accounts designed to meet the diverse needs of UK businesses. Each account type is tailored to support different business sizes and requirements, ensuring that every business can find a banking solution that fits. Below is a detailed look into the account types, their benefits, and unique selling points.

Business Bank Account

This Account is For: Small businesses, start-ups, sole traders, and limited companies with up to £2m turnover per year.

Key Features:

• Same-day account opening available in-store with immediate debit card printing.
• Local business managers with dedicated support in every branch.
• No monthly fee if the balance remains above £6,000, plus 30 free UK transactions per month.
• A business overdraft, depending on eligibility, for borrowing of up to £60,000.
• Access to “Invoice It”, a tool for quick and secure payment processing.
• Comprehensive online banking options and a highly-rated mobile app.
• Support for women in business, providing resources and networking opportunities.

Commercial Current Account

This Account is For: Businesses with an annual turnover of more than £2 million, seeking tailored banking solutions.

Key Features:

• Dedicated relationship managers to provide a personalised service to understand and meet your business needs.
• Sector services in various industries to offer specific support and expertise.
• Working capital options to aid the smooth running of your day-to-day business.
• No fees for non-sterling transactions in most European countries.
• Supports overdraft applications after financial status review.
• Simple online banking setup and management.

Community Current Account

This Account is For: UK-based clubs, societies, and charities with a turnover/balance sheet of up to £250,000.

Key Features:

• 200 fee-free transactions each month.
• Free giant cheques for events or charity donations.
• No monthly maintenance fees.
• Access to all of Metro Bank’s in-store, online, and telephone banking services.

Foreign Currency Account

This Account is For: Businesses engaged in international trade needing to manage finances in multiple currencies.

Key Features:

• Trade in 14 popular currencies.
• Smooth and secure international payments.
• Manage the account through various channels, including online and mobile banking.
• Competitive rates for currency exchange.

Insolvency Practitioner Account

This Account is For: Insolvency professionals needing to hold funds in trust securely.

Key Features:

• Quick and easy account setup.
• 24/7 support via in-store, online, and telephone banking.
• Specialised account features tailored for insolvency practitioners.
• Robust online banking tools to manage client funds effectively.

Deposit Accounts

While this article focuses on Metro Bank’s business current accounts, it’s worth noting that Metro Bank also offers Business Instant Access Deposit Accounts among other savings products. These are designed for businesses looking to earn interest on surplus funds while maintaining varied access to their money.

Pricing and Fees Breakdown

Below is a structured breakdown of the pricing and fees for each of the following account types: The Business Bank Account, Commercial Current Account, Community Current Account, Foreign Currency Account, and the Insolvency Practitioner Account.

Account Type	Monthly Account Fee	Transaction Fees	Debit Card Usage Abroad
Business Bank Account	No fee if balance > £6,000	30 free UK transactions/month if balance > £6,000; then £0.30/transaction. If balance < £6,000, £6.00/month and £0.30/transaction.	No fees in most European countries. Outside: 2.99% transaction fee + £1.50 withdrawal.
Commercial Current Account	Zero (for businesses with turnover > £2 million)	Based on account activity. Details upon application.	Free in Europe; outside Europe, 2.99% + £1.50 for cash withdrawals.
Community Current Account	None	First 200 transactions/month free, then £0.30/transaction.	Same as Commercial Current Account.
Foreign Currency Account	Varies by currency (e.g., EUR accounts: 15 EUR standard fee, 5 EUR if > 2,000 EUR)	International payment charges per transaction vary by currency.	Varies depending on the currency. Fees detailed in account-specific downloadable documents on the Metro Bank site.
Insolvency Practitioner Account	Based on credit balance accounts (£25/month for up to 25 accounts)	Free for transactions within the UK.	Free in Europe; outside Europe, 2.99% + £1.50 for cash withdrawals.

Each account type comes with its own set of features and fees, tailored to the specific needs of businesses, community groups, or professionals in various sectors. Fees for additional services, such as international payments and specific transaction types, are detailed in downloadable PDFs available on Metro Bank’s website or directly through contact with the bank.

Ease of Use and the Application Process

When it comes to the app UX there are some complaints over the user interface, but generally it is quite straight forward to use. While some have commented on the staff and their manners, we haven’t found any issues in communicating with several departments at Metro Bank and the interactions have been quite smooth. There is also some negative feedback about the experience with the fraud department and transaction management to take into consideration when looking at the experience with these parts of the bank.

Metro Bank facilitates a convenient and flexible application process for business accounts, catering to different preferences. Businesses have the option to apply online, through the Metro Bank app, or by visiting a local branch, ensuring a comfortable fit for all, whether preferring digital convenience or in-person service.

The digital application route is designed for ease, allowing businesses to get started with their banking needs swiftly, without the necessity of visiting a branch. This inclusivity in application methods underscores Metro Bank’s commitment to providing accessible and user-friendly banking solutions to UK businesses, aligning with the varying needs and preferences of today’s businesses.

Safety and Security

Metro Bank places a high emphasis on security and protection for its business account holders, employing a comprehensive range of measures to ensure safety and peace of mind. These include:

• Security Measures: Metro Bank integrates advanced security technologies to safeguard online banking activities. This includes the use of secure encryption for data transmission, Strong Customer Authentication (SCA) for login and transactions, and continuous monitoring for suspicious activity to prevent unauthorised access.
• Financial Services Compensation Scheme (FSCS) Protection: Accounts are protected under the FSCS, offering an additional layer of security. This means that deposits up to £85,000 per eligible business are safeguarded, providing significant financial security in the event of the bank’s failure.
• Data Safety: Metro Bank adheres to stringent data protection regulations to ensure the confidentiality and integrity of customer information. The bank employs robust data handling and privacy measures to prevent data breaches and misuse, complying with GDPR and other relevant legislation.

What Their Customers Say

At the time of writing this article Metro Bank have 4,838 reviews on Trustpilot with an average rating of 2 out of 5 stars. However, their rating on the Apple App Store is an average of 4.8 out of 5 stars over a whopping 188,000 ratings, which is very impressive. On Google Play it has over 1 million downloads, with 42,300 reviews and an average rating of 4.6 stars.

Here’s a summary of what Metro Bank’s customers are saying about them from our research here:

Positive Reviews:

• Some customers appreciate the friendly and polite service received during the account opening process in branches.
• The spacious and well-organised layout of Metro Bank branches is highlighted as a positive aspect.
• One example we came across was of a customer commenting on Metro Bank for providing a perfect introduction to banking for their daughter, emphasising the customer-driven approach and helpful staff at their local branch.

Negative Reviews:

• The most common complaint revolves around issues with the bank’s digital services, particularly the mobile app, which customers feel needs significant improvements.
• Concerns were raised about security issues, including fraudulent transactions and frozen accounts, with customers feeling that these issues were not addressed promptly or effectively.
• Delays and errors in account management, such as setting up payees and accessing funds, were reported by multiple customers, leading to dissatisfaction with the overall banking experience.

Additional Information About Metro Bank

Metro Bank also caters to diverse industries and sectors with specialised services for the following:

• Property, healthcare, hospitality, and leisure industries.
• Partnership banking and inward investment support.
• Charities, not-for-profits, and trustee banking.
• Dedicated assistance for small businesses and women in business.

How Metro Bank Stacks Up Against the Competition

Item	Metro Bank	Starling Bank	HSBC	NatWest
Business Current Account Options	5	3	6	4
Application Process	Convenient	Excellent	Simple	Simple
Fees and Charges	Moderate	Low	Moderate	Moderate
Digital Banking Features	Fair	Excellent	Advanced	Moderate
Branch Network Volume	76	None	327	960
Customer Support	Responsive	Excellent	Excellent	Good

Final Thoughts on Metro Bank

In conclusion, Metro Bank stands out for its commitment to providing tailored solutions across various industries and sectors. From property and healthcare to hospitality and leisure, Metro Bank offers specialised services to meet the unique needs of each client.

With a focus on partnership banking, inward investment support, and dedicated assistance for small businesses and women in business, Metro Bank demonstrates its dedication to fostering growth and success within the communities it serves.

Additionally, its provision of services for charities, not-for-profits, and trustee banking underscores its commitment to supporting organisations with a social impact. Overall, Metro Bank’s diverse range of offerings reflects its mission to provide inclusive and comprehensive banking solutions for all.