Digital banking

Compare app-based banking accounts and spending cards.

Mobile banking puts your finances at your fingertips 24/7. There's a host of challenger banks, digital-only banks and personal finance apps available, designed to give you better, faster control of your money. We've rounded up what you need to know from reviews and product comparisons to news and video interviews with the key players.

Compare challenger banks and apps

Table: sorted by promoted deals first
1 - 6 of 6
Name Product ratings Interest (AER) Arranged overdraft Key benefits Incentive Representative example Link
Monzo Free
Finder score
★★★★★
★★★★★
User survey
★★★★★
★★★★★
0%
39% EAR variable
Monzo Instant Access Savings Pot earns you 4.10% AER interest (variable), paid monthly into the Pot you create
tag iconMonzo Instant Access Savings Pot earns you 4.10% AER interest (variable), paid monthly into the Pot you create.
Current account switch service guarantee badgeRepresentative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable. Account fee of £0.
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OFFER
Suits Me - Essential Current Account
Not yet rated
0%

£10 when your wages or benefits are paid in for the first time (T&C's apply)
tag icon£10 when your wages or benefits are paid in for the first time (T&C's apply).
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Finder Award
OFFER
Current Account - Age 18 and over
Finder score
★★★★★
★★★★★
User survey
★★★★★
★★★★★
3.24%
15% EAR variable
N/A
Current account switch service guarantee badge
No fees for spending or withdrawing cash overseas - currencies are converted at Mastercard’s standard exchange rate
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 15% EAR variable.
Current Account
Finder score
★★★★★
★★★★★
4.35%

Earn interest on your current account balance
tag iconEarn interest on your current account balance.
Monese
Finder score
★★★★★
★★★★★
User survey
★★★★★
★★★★★
0%
N/A
N/A
thinkmoney Current Account
Finder score
★★★★★
★★★★★
0%

N/A
Current account switch service guarantee badge Account fee of £10.95 per month or £15.95 per month.
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Read digital banking reviews

We review every digital bank, app and challenger. Our reviews are regularly updated to cover new features and releases.

Latest digital banking news

What is digital banking?

Digital banking is a way to control your money, usually through a smartphone app or web app. It allows you to log into your account anywhere with Internet access, giving you constant visibility of your money and helping you understand the best way to manage it.

Picture not described: digitalbanking-1.png Image: Getty

Why should I use app-based banking?

There are several advantages to app-based banking:

  • Banking access in your pocket
  • Many companies offer 24/7 access to banking support
  • Instant spending notifications
  • Many banking apps offer ways to automatically save money

Another major benefit of app-based banking is the degree to which it has opened up the competition. The new Open Banking rules have enabled third-party apps to innovate, drawing on the infrastructure of traditional banks.

Things to know about app-based banking

Here are a few things that you may not know about using your mobile as your main point of contact with your bank:

If you want to share your information, your bank has to agree

Many banking apps are designed to help their customers save. These apps access your current bank accounts and use clever computer programs to analyse your spending and look for ways that you could save money.

Previously, you could ask your bank to give these apps permission to view your banking data and the bank could refuse. Now, as long as the app is properly licensed, your bank must grant access if you agree to it.

Digital banks vs high street banks: Whose customers are more likely to recommend their current account provider to friends/family?

Response% of customers that would recommend
High-street banks89.12%
Digital banks98.51%
Source: Finder survey by OnePoll of 750 Brits

Different types of app-based banking

App-based banking is different from traditional banking in many ways. Unlike traditional banking, app-based banking covers a much wider definition of “banking”.

  • Current account apps

    As part of the app-based banking innovations, a clear class of banking app has emerged: the challenger bank. Challenger banks are new, fledgling banks that are aiming to take on the big, traditional high street banks and change the way we save and spend money. Challenger banks such as Starling, Tandem and Monzo are similar to traditional banks in that they offer the full current account experience but with all the added benefits of an app-based bank.

  • Apps that help you save

    One of the most common reasons for people heading away from traditional banks and towards app-based banking is how easy app-based banking makes it for people to save money. Several providers such as Plum and Chip offer automatic savings for customers. Plum’s clever computer program looks at your spending habits and income and identifies how much you can reasonably save each month and then helps you set up a direct debit to your Plum savings account for this same amount.

  • Prepaid card apps

    Another way to use app-based banking to help you save is through the use of prepaid cards. Cards with banking companies such as Pockit, Cashplus and Tuxedo allow you to load specific amounts of money on to your card and even further segregate this money into “pots” to spend on different things. This way you don’t have access to too much money all at once and are less likely to fall for those expensive “impulse buys”.

  • Investment apps

    Another popular way to use app-based banking is saving through investment. Apps such as Moneybox allow you to make weekly or one-off deposits to three risk-assessed categories of investments. Several of the app-based banks also allow you to sign up to a “round-up” where your account rounds up your purchases to the nearest pound and uses the change you would have received as an investment.

  • Traditional banking apps

    App-based banking doesn’t only apply to challenger banks or money-saving banking apps; it’s also becoming increasingly possible to bank on your smartphone with traditional banks such as Barclays and Natwest, both of whom have highly-rated mobile apps where you can control your money.

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Banking scores

★★★★★ — Excellent
★★★★★ — Good
★★★★★ — Average
★★★★★ — Subpar
★★★★★ — Poor

Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.

To find out more, read our full methodology.

We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.

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