Remember opening your new bank account?
It’s a miserable experience. Endless forms, identity checks and missed payments. It’s no wonder that 75% of us have never changed banks.
If you run a business you’ll know things get even worse.
Business current accounts can be a trying experience. In The Memo’s shared offices in London we’ve heard countless tales of banks demanding confirmation by fax (who has a fax machine in 2016?!) and taking weeks to clear international payments. These frustrations can grind fast-growing businesses to a halt.
This week a new service called Tide hit the market with the promise of rebuilding business banking from the ground up.
We believe it’s one to watch this year.
Some of the biggest names in tech have already thrown their weight behind Tide, including the founders of LoveFilm, OneFineStay and superstar investor Eileen Burbidge.
Tide joins the growing ranks of startup mobile banks launching this year including Mondo, Tandem and Starling. As we’ve reported throughout 2016, despite how hard it can be to change banks, consumer interest in these new mobile startups has exploded.
It’s important to understand that unlike Mondo and Tandem, Tide is not yet a bank in its own right. Instead the service uses an account at Barclays, but offers its customers their own sort code and account number, attached to a business MasterCard.
Tide’s promised features already look impressive, including no monthly fees (instead a 20p per transaction fee) and integration with the most popular accounting systems used by small businesses including Xero and FreeAgent.
It’s early days for the service which is now accepting applications for early access.
The signup process certainly caught our eye. Once Tide is open for business, they promise a fully functioning current account and MasterCard up and running in just three minutes.
Can you name a bank that fast?