Kinetic business banking review
Kinetic is a digital business banking solution offered by HSBC. It is designed for small businesses, freelancers, and sole traders, providing a fast and easy way to manage business finances through a mobile-first experience.
Key features of Kinetic
1. Business current account
- Quick digital onboarding: Open an account via the mobile app in minutes.
- UK sort code and account number: Standard banking functionalities.
- FSCS protection up to £85,000: Ensuring deposit security.
- No monthly fees: Free banking for eligible businesses.
2. Expense and payment management
- Contactless debit card: Works with Apple Pay and Google Pay.
- Faster Payments, BACS, and CHAPS: Supports seamless business transactions.
- Direct debits and standing orders: Automate recurring payments.
- Instant notifications: Real-time alerts for transactions and payments.
3. Business insights and financial management
- Smart transaction categorisation: Helps track income and expenses.
- Cash flow forecasts: Predicts financial trends for better decision-making.
- Integration with accounting software: Syncs with Xero, QuickBooks, and FreeAgent.
- Invoice creation and tracking: Generate and manage invoices within the app.
4. Digital banking experience
- Mobile-only banking: No physical branches, fully digital operations.
- Biometric login: Secure access with fingerprint or facial recognition.
- 24/7 in-app support: Get assistance anytime through the mobile app.
Kinetic fees and pricing
1. Business current account fees
- No monthly account fees for eligible businesses.
- Free Faster Payments: No charge for UK bank transfers.
- ATM withdrawals: Free within the UK.
- Foreign transactions: Standard exchange rates apply, with minor fees.
2. Additional costs
- International payments: SWIFT transfers may incur charges.
- Returned payment fees: Charges apply for failed direct debits.
- Overdraft interest: Based on the agreed business overdraft terms.
Pros and cons of Kinetic
Pros
- No monthly fees, making it cost-effective for small businesses.
- Fast digital onboarding, with account setup in minutes.
- Seamless accounting integration with major bookkeeping software.
- Advanced cash flow insights to help businesses manage finances.
- FSCS protection up to £85,000.
Cons
- No physical branches, as it is fully digital.
- Limited lending options, with no traditional business loans.
- International payments may incur fees, unlike domestic transactions.
- Only available to UK-registered businesses.
How Kinetic compares to competitors
| Feature | Kinetic (HSBC) | Starling Business | Tide | Monzo Business |
|---|---|---|---|---|
| Business current account | Yes | Yes | Yes | Yes |
| Monthly fees | Free | Free | Free – £49.99 | Free – £5/month |
| Accounting integration | Yes | Yes | Yes | Yes |
| Cash flow insights | Yes | Yes | No | Yes |
| FSCS protection | Yes (£85,000) | Yes (£85,000) | No | Yes (£85,000) |
| Ideal for | Small businesses, freelancers | SMEs, startups | Startups, SMEs | Freelancers, SMEs |
Who should use Kinetic?
- Freelancers and sole traders: Ideal for self-employed professionals.
- Startups and small businesses: Provides essential financial tools with no fees.
- Business owners seeking mobile banking: Perfect for those who prefer managing finances on the go.
- Companies using accounting software: Easy integration with bookkeeping tools.
Our verdict
Kinetic is a modern, mobile-first business banking solution designed for freelancers, startups, and small businesses. It offers free business banking, smart financial tools, and seamless digital experience.
However, its lack of physical branches, limited lending options, and international transaction fees may not suit businesses needing traditional banking services. For those seeking a fast, intuitive, and cost-effective digital bank, Kinetic provides a competitive and efficient alternative to high-street banks.