Novo: Are You Ready for a New Wave in Business Banking?
Updated May 2025
Novo, a fintech serving 200,000+ small businesses, simplifies banking via its app. If you’re a small business owner or entrepreneur looking for a Fintech bank that understands you, Novo might just be the perfect fit. This innovative neobank is being recognized in the fintech industry for its streamlined, user-friendly platform created to meet the unique needs of its target market. Novo is designed specifically for small businesses, freelancers, and startups, providing a suite of financial tools and services to streamline your banking experience. Novo is a fintech company and not a bank itself, but Novo accounts are FDIC-insured through it’s banking partner, Middlesex Federal Savings. This means that deposits made through Novo are insured up to the standard FDIC limit of $250,000. For more detailed information, you can visit Novo’s FAQ page which discusses their FDIC insurance and other related topics.
Products and Services
Novo’s app (4.7/5 App Store) offers:
- Checking Accounts: No monthly fees, no minimums, no overdraft fees; $50 opening deposit. Includes unlimited transactions, free ACH (1–7 days, $3 Express ACH), free incoming wires, free mailed checks, and $7/month ATM refunds. Mastercard debit cards (virtual/physical) support Apple/Google Pay. No interest earned.
- Reserves: Sub-accounts for budgeting taxes or goals, no interest.
- Merchant Services: Integrations with Stripe (Novo Boost for same-day payouts), Square, PayPal, Venmo, Amazon, Shopify. Merchant cash advances ($5,000–$75,000, 6–12 months) via Novo Funding.
- Invoicing: Unlimited, customizable invoices; payments via ACH, Stripe, Square, PayPal, Venmo, or mailed checks.
- Business Insights: Dashboard for expense tracking, tax categorization, and cash flow monitoring, exportable to QuickBooks/Xero.
- Integrations: QuickBooks, Xero, Wave, Shopify, Stripe, Square, PayPal, Venmo, Amazon, Slack, Wise, Zapier (1,000+ apps), Gusto, HubSpot, Salesforce via Novo Apps.
- P2P Transfers: Instant internal transfers; external ACH (1–7 days, $3 Express ACH). No domestic/international wires.
Target Market
Novo serves U.S. small businesses, freelancers, and startups (SSN, U.S. address required; EIN for corporations/partnerships), excluding high-risk industries (e.g., crypto exchanges).
Pros and Cons
Pros:
- Transparent fees; no monthly/overdraft costs (4.3/5 Trustpilot, 5,000+ reviews).
- Robust invoicing, Reserves, and Novo Boost.
- Novo Apps integrates 1,000+ tools (QuickBooks, Stripe, Shopify).
- Mobile-first app with real-time notifications.
- $7/month ATM refunds worldwide.
Cons:
- No savings accounts or interest.
- No branches; no cash deposits (money orders via app).
- No wires, limited bill pay (ACH/checks).
- Email/app-only support with slow response complaints.
- Occasional freezes (mixed feedback).
Rewards Program
Novo’s Partner Perks offer $3,000+ in discounts (Google Cloud, HubSpot, Salesforce, QuickBooks, Stripe, Gusto, Slack) and free trials, but no cashback or points.
Marketing Niches
Novo’s “powerfully simple” platform, recognized on Forbes Fintech 50 (2022, 2023), processes $20B+ in transactions. It emphasizes integrations, no fees, and ease for small businesses via social media and referrals.
Final Thoughts
Novo’s no-fee checking, invoicing, and 1,000+ integrations streamline banking for small businesses, with merchant cash advances for growth. Limitations include no savings, no wires, and slow support/freezes. Its 4.2/5 Trustpilot score (4,300+ reviews) reflects strong UX but mixed service feedback. Explore at novo.co.
