My new business bank

Last year I wrote about the lack of innovation in business banking and someone must have been listening! Last week my Tide Business MasterCard arrived.

Tide is technically a prepaid account but operates like a business bank account with a sort code, account number, direct debits, Business MasterCard and many other trappings of business banking (you won’t get an overdraft because it’s a prepaid account). The big difference is that the whole customer experience is app centric. From sign up to daily use, the app is how you manage the account.

Sign up was easy via the iOS app with identity verification based on taking a photo of driving licence or passport plus background electronic checks. Charges are reasonable; there are no monthly fees, MasterCard transactions are free and other transactions incur small charges.

MasterCard transactions appear instantly in the app with none of the delays associated with legacy bank apps. All transactions are categorised and card transactions can have comments and attachments added to them. I would like to see more transaction metadata, along the lines of Monzo.

The app has a tab called Toolbox which so far contains two interesting features you don’t see in a legacy bank app – invoicing and API access. Invoicing lets you create simple invoices for billing your customers and API access is for developers to add third party apps. The Toolbox tab will be one to watch to see what else appears here.

Another nice feature is no FX loading or surcharging on foreign currency transactions (similar to Monzo) which makes card transactions in other currencies much cheaper than those with the usual suspects.

Tide is still in beta so there are a few rough edges – I’ve had a couple of card validation problems and card transactions coded as continuous payment authority are not yet supported. However any problems are easily resolved via an instant messenger interface in the app. Overall it’s a great start and another reason for the legacy banks to be very afraid of the future.

I won’t be closing my legacy business bank account yet but the day of reckoning for legacy banks is getting ever closer.

Originally published on DisruptiveViews.