On the surface, most banks appear to do the same thing – so how do you choose who to trust with your business?

In our article “How to choose the right banking partner for long-term growth”, we share an overview of the services and solutions a banking partner should offer to startups, to help guide your initial research.

When you’ve narrowed down the options, you’ll want to do your due diligence to work out which banking partner suits your startup specifically. Here are five questions you should consider asking to ensure you choose one that can help your business thrive at every stage of growth.

1. What services and products do you offer that can accelerate my startup’s growth?
2. What is your approach to supporting funding for startups?
3. What fees or charges should I account for in my financial planning?
4. How quickly can we expect to be onboarded and set up?
5. Can you provide references or case studies of other startups with which you have successfully partnered?

For an innovative startup, your bank should offer a dynamic and comprehensive suite of flexible financial solutions including business accounts, credit options, foreign exchange, risk management, and payment processing. These need to match your ambitions and should be designed to help increase productivity and manage cash flow.

Ordinary turnkey solutions may be suitable for some new businesses, but if you are serious about navigating the fast-paced innovation ecosystem, you may require a banking partner that can provide a custom suite of tools and products specifically designed to complement your company’s growth from pre-seed to post-IPO.

As your business expands – whether that’s through growing your headcount, moving through different funding rounds or venturing into overseas markets – you’ll need an easily accessible, clear picture of your business’s entire banking operations.

Online banking platforms may be a given these days, but even in the early days of your business, real-time access and customisable setup features can enable you to stay in control of your organisation’s finances wherever you are in the world. Additionally, ensuring that your banking partner can directly integrate with your accounting platforms will save time and automate financial workflows.

Having access to a range of services like business accounts, credit options, foreign exchange and payment processing can help take care of your day-to-day banking needs, but they can do more. These solutions help to automate and simplify payments, processing, reporting and reconciliation – streamlining your business operations in a cost-effective, secure way that helps you run things more efficiently.

Got global goals? It’s useful to verify that the bank has the capabilities you need sooner rather than later. A bank with a global network also enables money to be sent internationally through traceable wire transfers, while expertise in foreign exchange (FX) risk management can help you navigate FX markets and mitigate risk successfully. Plus, a liquidity management dashboard can give you real-time visibility and the control to optimise cash management across both transactional and interest-bearing accounts.

Firstly, consider whether a bank can help fulfil your growth ambitions. Can it support your business’s journey from early-stage to next-level funding requirements and beyond? Will you have access to dedicated support? Does it possess sector expertise, and can it offer vital networking connections? Is it set up to support your international expansion?

For a founder with bold ideas for a better future, the right banking partnership can be the difference your business needs to reach its potential.

Growth is a goal that is constantly moving; your banking partner must be able to offer the right funding services at every stage. You need to know they’ve got you covered now, but can they also help you answer the question, What’s next?

Facilitating working capital, providing revolving and flexible lines of credit, offering venture debt and even making venture capital connections can help fast-growing, pre-profit start-ups move forward at speed. Treasury services and payments infrastructure designed with rapid growth in mind can also help startups efficiently and securely manage their growing domestic and international transactions.

It can be difficult to understand the best path – particularly if you’re doing research on your own. Working with a bank that assigns a relationship manager can help you find the right solutions that suit your business.

Dedicated relationship managers aren’t necessarily just banking experts; look for a team that has meaningful sector expertise and broader knowledge of the tech sector. This means they can provide relevant guidance about financial planning and growth strategies. Ideally, aim to work with a team that has a background in building and scaling their own startups or has raised venture funding themselves; they can also provide invaluable connections to international ecosystem players.

The dynamic banking solutions best suited to tech-oriented start-ups inevitably come with fees. Request a clear, transparent schedule of these fees – i.e., when they are payable and whether different fees apply to different levels of accounts –from the get-go. As a startup founder, you’ll be aware that operating budgets are often tight, so understanding the fee structure up front is essential for financial planning.

Also consider monthly account fees: some banks may charge them, while others are free to maintain. Be mindful of what is included in each option – sometimes, fee-paying accounts may be the best option as they offer enhanced features such as global online banking platforms or multi-user access. Are there additional transaction fees? Will there be charges for late payments? What are the interest rates for FX transactions or cash savings? Are there onboarding fees? Access to overdraft facilities might be helpful, but get to know the associated fees, as they can be quite costly.

The risk of unexpected expenses can be overwhelming and as a founder, you need to be prepared. All banking costs and their timing should be crystal clear so you can factor them into your financial planning. Too many promising startups face avoidable difficulties due to poor cash management.

In many instances, applications are as simple as providing details about the business and the business owners. Online or app-based applications generally require certain documentation, such as proof of business address, Companies House registration, estimated turnover, as well as personal information about the founder, alongside any partners or directors.

Of course, banks must then undertake checks to verify these credentials, and the processing time can vary. Know Your Customer (KYC) is a mandatory requirement to prevent the misuse of bank accounts for money laundering, fraud or other illegal activities like financing terrorism.

Given its legal importance, KYC can be time-consuming, but it is worth the wait as it can provide you with peace of mind knowing your bank takes the time to verify the legitimacy of its clients, plus it gives the bank time to fully understand their client’s goals and business aspirations.

Dedicated relationship managers are also key to supporting the onboarding process. They assess the eligibility of each startup on its own unique merits. A relationship manager can also provide an estimated timeline and a breakdown of all relevant documentation at the start of the process, and keep the business informed of progress through each stage of the process. You can read more on what to expect during onboarding here.

These insights can be particularly valuable when choosing a banking partner, because other founders can share real-life stories of a bank’s onboarding process, reliability, support and overall effectiveness in fostering startup growth.

A founder’s journey can be a rollercoaster, so hearing about the shared experiences of other startups can provide valuable lessons and a useful reminder that you are not alone.

For example, can the relationship managers empathise with a founder’s journey? Do they understand what a startup goes through daily? And will they offer products and services that are truly relevant?

While client testimonials and case studies are certainly helpful, a bank that also connects you with a community of supportive peers takes this support one step further. Accessing these networks enables founders to listen to one another, share wisdom and learn from each other’s mistakes, which can be invaluable.

Asking the right questions at the start of this journey means you’re more likely to find the best fit for your business: one that is proactive and transparent, helps you to overcome challenges and capitalise on opportunities, enables you to reach funding milestones and gives you access to the resources necessary to fuel your growth.

Not all banks are built to meet the specific demands of start-up, tech businesses, and it’s important to ensure your potential banking partner has what it takes to guide you to growth.

How can I assess whether a bank truly understands startups and the ecosystem?

Two distinctive conversations will help you determine whether your bank ‘gets it’. Firstly, are the team asking you questions about growth plans and ambitions? A banking partner that wants to be with you for the long-run will ask you up front about IPO, exit plans or international expansion, knowing they can support you throughout that journey.

The second assessment is the assignment of an industry-expert, often in the form of a relationship manager. This person and their team should have a background in the innovation ecosystem, and offer invaluable guidance, growth strategies and connections to relevant players in the market. You can use the questions in the main article above to help you understand these two factors in detail.

Should I expect different answers depending on my startup's stage or industry?

Absolutely, each stage of a startup’s growth journey comes with different requirements, and your bank should tailor its solutions and guidance at each stage. In early stage, you should expect banking solutions such as payments, cards and high-yield accounts, whereas later down the line, after rounds of funding, you might be looking for lines of credit or venture debt.

When meeting with your prospective banking partner, explain your current position and your growth aspirations, then ask how they can support you at each stage.

How important is it to have a dedicated relationship manager?

Having a dedicated relationship manager is an important differentiator between a turnkey bank and a banking partner. Relationship managers offer industry expertise, typically from their own experience building startups and/or venture funding. In addition to solution guidance, they can connect you with key players in the innovation ecosystem to support your growth and success.