.jpg)
Starling Bank and Allica Bank are both fully licensed UK banks, but they’re designed for very different stages of business growth.
Starling is best known as a digital‑first bank offering a free, app‑based business current account for sole traders and SMEs. Allica, by contrast, is focused on established small and medium‑sized businesses, combining business banking with lending and savings.
This guide compares Allica and Starling across features, fees, regulation, and which types of UK businesses each account is best suited to.
Starling vs Allica: At a Glance Comparison
Starling | Allica | |
Account model | Fully licensed bank | Fully licensed bank |
Core focus | Digital banking | Banking, lending for established SMEs |
Typical users | Sole traders, limited companies, SMEs | Established SMEs |
Monthly fees | Free | Free |
Relationship manager | No | Yes |
Lending | Available subject to approval | Core part of offering |
FSCS protection | Yes, up to £120,000 | Yes, up to £120,000 |
Business Bank Account Offers and Fees
What Starling Bank is Designed For
Starling Bank is designed to give UK businesses a simple, fully featured business current account without the complexity of traditional banking. It offers everyday banking tools through a mobile‑first platform, with no monthly fee.
Starling suits customers who want convenience, clarity, and strong regulatory protection, without needing a relationship‑led service.
Key Characteristics of Starling Bank
Free business current account
Fully licensed UK bank
FSCS protection on eligible deposits
Built‑in invoicing and spending categories
Overdrafts and business loans available
Available to sole traders and limited companies
Trade‑Offs to Consider
No dedicated relationship manager
Limited focus on larger or more complex SMEs
Fewer bespoke lending options
Starling is often chosen by small businesses that want digital efficiency with bank‑level security.
What Allica Bank is Designed For
Allica Bank is built specifically for established SMEs, typically with multiple directors, employees, or more complex finances. Its proposition combines a business current account with relationship‑led lending, savings products, and tailored support.
Unlike app‑only banks, Allica puts more emphasis on human support alongside digital tools.
Key Characteristics of Allica Bank
Fully licensed UK bank
Free business current account
Dedicated relationship manager
Focus on business loans and asset finance
Competitive business savings accounts
Designed for established limited companies
Trade‑Offs to Consider
Less suitable for very small or new businesses
Digital tools are improving, but less app‑centric
Not designed for sole traders
Allica appeals to businesses that value access to finance and support over app-based features.
How They Charge
Starling Bank Pricing
No monthly account fee
No paid tiers or subscriptions
Charges apply for services like cash handling
Lending products priced separately
Starling’s pricing is simple and transparent.
Allica Bank Pricing
No monthly account fee
No subscription tiers
Business finance products priced individually
Savings accounts offer competitive interest rates
Allica’s model is geared towards long‑term banking relationships.
Feature Comparison: Starling vs Allica
Everyday Banking
Payments and transfers: Both support Faster Payments and Direct Debits
Business debit cards: Both provide business debit cards
Account access: Online platforms with mobile access
Lending and Finance
Starling: Overdrafts and loans available, typically smaller
Allica: Business loans, asset finance, and relationship‑led lending
Savings
Starling: Limited business savings options
Allica: Strong focus on business savings products
Support Model
Starling: Digital support, no relationship manager
Allica: Dedicated relationship manager for eligible customers
Regulation and Protection
Both Starling Bank and Allica Bank operate as fully licensed UK banks, offering the highest level of regulatory protection.
Eligible deposits are protected by the FSCS up to £120,000
Funds are covered even if either bank were to fail
Both operate under full UK banking regulation
From a protection standpoint, there is no difference between the two.
Who Should Consider Starling?
Starling may be a good fit if your company:
Is a sole trader or small limited company
Wants a free, app‑based business bank account
Values FSCS protection
Doesn’t need a relationship manager
Prefers simplicity and speed
Who Should Consider Allica?
Allica may suit businesses that:
Are established SMEs
Want access to larger or more tailored lending
Value a dedicated relationship manager
Hold significant cash balances
Prefer a more traditional banking relationship
Alternatives to Starling and Allica
You might want to explore other business providers if your company:
Is very early‑stage or pre‑trading
Wants advanced expense management tools
Needs international banking and FX tools
Prefers subscription‑based fintech platforms
In those cases, it’s probably worth comparing other business bank accounts to find a better option.
