Digital Banking Solutions: Starling Vs. Monzo

In recent years, digital banking has transformed the way we manage our money, offering greater flexibility, user-friendly apps and innovative features designed for modern lifestyles.

Among the leading names in the UK’s fintech revolution are Starling Bank and Monzo – two app-based banks that have shaken up traditional banking with their mobile-first approach and customer-focused services. Both banks boast impressive credentials, with millions of users, slick technology and glowing reviews, but they also have key differences that may sway potential customers one way or the other.

Whether you’re looking for a current account with smart budgeting tools, fee-free spending abroad, or business banking options, it’s worth taking a closer look at what each provider has to offer.

What Is Starling?

Starling is the epitome of modern digital banking platforms, built entirely around a mobile app. Launched in 2017, Starling Bank is one of the top digital-only banks in the UK, and it’s become known for its clean, user-friendly interface.

And when we say digital only, we mean it – there are absolutely no physical branches, with everything done via your phone. That being said, Starling is fully licensed and regulated, so just like any traditional bank, your money is completely protected.

In addition, users can also enjoy offerings like business accounts, joint accounts and even specialised Euro accounts, making it a versatile choice suitable for a range of different customers.

Starling offers plenty of features, including things like instant spending notifications, fee-free spending abroad and a feature called “Spaces” which helps you budget.

What Is Monzo?

Monzo is another big name in the UK’s digital banking scene, and it’s got a real cult following. Launched in 2015, it started as a prepaid card but quickly grew into a full bank with a current account, and now, millions of people are using it every day.

Much like Starling, it’s app-based, so everything happens on your phone – from setting up your account to tracking your spending in real time.

However, one of Monzo’s standout features is its budgeting tools, which help you split bills, set spending limits and keep tabs on where your money’s going, making the platform a great way to help manage your finances.

It’s also great for travelling, with fee-free spending abroad and handy currency notifications. Monzo has expanded into things like savings pots, loans and even salary advances. The app’s colourful design and friendly tone make it feel more like a mate helping you with your money than a traditional bank.

Starling Vs. Monzo: A Direct Comparison

Both Starling and Monzo are well-known and loved in the world of digital banking, but what happens when we put them head to head?

The platforms offer a range of similarities and differences. With regard to the former, Monzo and Starling both offer features like fee-free spending overseas, instant spending notifications, the ability to freeze and unfreeze cards and more.

However, they differ in a few important ways, one of the most stark is in international use. With Starling, there are no cash withdrawal fees (to a certain limit), while Monzo, on the other hand, charges £200 unless you’re a paid account holder. So, straight off the bat, this is one area in which Starling seems to come out on top.

But, don’t get carried away too quickly, because if budgeting is your priority, Monzo is probably the better option for you. The app is intuitive and colourful, making it pleasant to use, but on top of that, it allows you to do things like set spending targets, categorise spending and split bills.

Starling does have some budgeting features, sure, they’re just a bit more limited. Where they shine is with “Spaces”, which even allows you to pay interest on your balance. Monzo, on the other hand, has “Pots” (kind of their equivalent), which also tends to have pretty competitive interest rates.

If you’d like a business bank account, Starling is the one for you, offering plenty of helpful features for both small businesses and freelancers (most notably, no monthly fees).

So, the ultimate question: Monzo or Starling?

Of course, neither is necessarily better than the other, but they do shine in different arenas. Monzo is a great option for everyday payments and money management, while Starling is more practical and useful for extended purposes.

Figure out exactly what you need before you make a choice between the two, but either way, you should be pretty sorted with both Starling and Monzo.