In 2024, small businesses have a variety of options for managing their finances, each with unique features and benefits. Two prominent contenders in the business banking sector are Novo and Chase Business. These platforms offer a range of services tailored to meet the needs of entrepreneurs and small business owners.

Understanding the distinctions between Novo and Chase Business can help you make an informed decision about which is best suited for your company's financial needs.

What is Novo Business?

Novo Business is an online banking platform specifically designed for small businesses, freelancers, and entrepreneurs. It was established to provide a modern, streamlined alternative to traditional banking, eliminating many of the fees and complexities associated with brick-and-mortar institutions. Novo offers a user-friendly mobile app that allows businesses to manage their finances from anywhere, making it an attractive option for tech-savvy entrepreneurs.

What is Chase Business?

Chase Business, part of JPMorgan Chase & Co., is one of the largest and most established banking institutions in the United States. It offers a comprehensive range of financial products and services to businesses of all sizes. Chase Business provides not only traditional banking services but also advanced financial solutions, including loans, credit cards, and merchant services. With an extensive network of branches and ATMs, Chase is a reliable choice for businesses seeking both digital convenience and physical banking support.

Key Differences: Novo vs. Chase Business

While both Novo and Chase Business cater to small businesses, they differ significantly in their approach, services, and user experience.

Banking Model:

Novo operates entirely online, focusing on reducing fees and simplifying banking through a digital-first approach. Conversely, Chase Business combines digital banking with an extensive physical presence, offering the convenience of online services backed by in-person support.

Fees:

Novo prides itself on minimal fees, including no monthly maintenance fees, minimum balance requirements, or hidden charges. Chase Business, while offering various account types with different fee structures, generally imposes more traditional banking fees, including monthly service fees that can be waived under specific conditions.

Account Features:

Novo offers basic business banking features such as free ACH transfers, mailed checks, and integrations with popular business tools like QuickBooks and Stripe. Chase Business provides a more extensive suite of features, including advanced payment solutions, cash management services, and access to business loans and credit cards.

Customer Service:

Novo relies heavily on digital customer support channels, including email and in-app messaging. Chase Business, with its large network of branches, offers in-person customer service, a comprehensive call center, and online support, catering to businesses that may need more direct assistance.

Technology and Integrations:

Novo is built with technology in mind, providing seamless integrations with various financial and business tools. Chase Business also offers robust technological solutions but is sometimes considered less agile compared to newer fintech players like Novo.

Novo vs. Chase Business: Pros and Cons

Novo Business Pros and Cons

Minimal Fees: Novo eliminates many common banking fees, such as monthly maintenance fees and minimum balance requirements, making it cost-effective for small businesses.

User-Friendly Mobile App: The app is intuitive and easy to use, allowing business owners to manage their finances seamlessly on the go.

Quick Account Setup: Setting up an account with Novo is straightforward and can be done entirely online in just a few minutes.

Strong Integrations: Novo integrates well with popular business tools like QuickBooks, Xero, Stripe, and Shopify, which helps streamline business operations.

Modern Banking Features: Novo offers features like free ACH transfers, the ability to mail checks directly from the app, and built-in invoicing.

Limited Customer Service: Novo primarily offers digital customer support through email and in-app messaging, which might not suffice for those who prefer in-person assistance.

No Physical Branches: Novo is an online-only bank, so it lacks physical branches, which can be a drawback for businesses that occasionally need in-person banking services.

Limited Financial Products: Compared to traditional banks, Novo offers fewer financial products, such as loans and credit cards.

Cash Deposits: Novo does not directly support cash deposits, which can be inconvenient for businesses that handle a lot of cash.

Chase Business Pros and Cons

Comprehensive Financial Products: Chase offers a wide range of products, including business loans, credit cards, merchant services, and cash management solutions.

Extensive Branch Network: With numerous branches and ATMs across the country, Chase provides convenient access to in-person banking services.

Robust Customer Service: Chase offers strong customer support, including in-person assistance, a comprehensive call center, and online support.

Advanced Payment Solutions: Chase offers various payment processing options, which can benefit businesses of all sizes.

Established Reputation: As one of the largest banks in the U.S., Chase has a long-standing reputation for reliability and trustworthiness.

Higher Fees: Chase Business accounts often come with higher fees, including monthly service charges, which can be waived under certain conditions but add to the complexity.

Complex Account Management: The extensive range of features and services can make account management more complex, particularly for small businesses or those new to banking.

Slower Technological Integration: Chase may not adopt new technologies as quickly as newer fintech companies like Novo, potentially leading to a less agile banking experience.

Minimum Balance Requirements: Some Chase Business accounts require maintaining a minimum balance to avoid fees, which might not be feasible for all small businesses.

Conclusion

Choosing between Novo and Chase Business depends on your specific needs and preferences as a small business owner. Novo offers a modern, fee-friendly approach with strong digital tools and integrations, making it ideal for tech-savvy entrepreneurs looking for a straightforward banking experience. On the other hand, Chase Business provides a comprehensive suite of financial products, robust customer service, and the security of a well-established banking institution, suitable for businesses that value traditional banking services alongside digital conveniences.

In 2024, both Novo and Chase Business continue to evolve, adapting to the changing needs of the business banking landscape. By carefully considering the features, fees, and support each platform offers, you can make an informed decision that best supports your business's growth and financial management.