Digital banking

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HSBC Advance Bank Account

Switch and receive a £125 reward

  • £125 reward when you switch your main current account (offer not available if held a HSBC current account, or opened a first direct or M&S Bank account, since 1 January 2017)
  • Earn 2.75% AER / gross interest with the linked HSBC Regular Saver
  • To be eligible for HSBC Advance, customers will need to pay in a minimum of £1,750 per month or £10,500 over 6 months and qualify for a minimum £1,000 arranged overdraft

The days of going to a bank branch and standing in a queue so you can speak to someone are numbered. 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 now, designed to give you better, faster control of your cash.

We’ve rounded up everything you need to know from reviews and product comparisons to news and video interviews with the key players.

Compare challenger banks and apps

Data indicated here is updated daily
Name Product Ratings Interest (AER) Arranged overdraft Key benefits Link Representative example
We say
★★★★★
You say
★★★★★
0%
39.9% EAR variable
£125 when you switch
Go to site
Current account switch service guarantee badge
Plus earn 2.75% AER / gross interest with the linked HSBC Regular Saver
To be eligible for HSBC Advance, customers will need to pay in a minimum of £1,750 per month or £10,500 over 6 months and must qualify for a minimum £1,000 arranged overdraft. To be eligible for the £125 switching offer, customers must switch from a non-HSBC Group current account product. Other T&Cs apply. Representative example: If you use an arranged overdraft of £1,200, you’ll be charged interest at 38.9% (0% EAR variable on first £25, 39.9% thereafter).
We say
★★★★★
You say
★★★★★
0%
15% EAR variable
Award-winning current account, apply in minutes
Go to site
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.
We say
★★★★★
You say
★★★★★
0%
39.94% EAR variable
Interest and fee free overdraft
for first four months when you switch
Go to site
Current account switch service guarantee badge
Up to 15% cashback at a range of major retailers
Representative example: If you use an arranged overdraft of £1,200 you'll be charged interest at 39.94% EAR variable.
We say
★★★★★
0%
N/A
Guaranteed acceptance plus a credit building feature
Go to site
Account fee of £5.95 per month.
We say
★★★★★
0%
N/A
Guaranteed acceptance
Go to site
Current account switch service guarantee badge
Earn cashback on your purchases when you shop through the ThinkMoney rewards portal
Account fee of £10 per month or £15 per month.
0%
Interest rates of 19%, 29% or 39% EAR (variable)
N/A
We say
★★★★★
You say
★★★★★
0%
NA
N/A
Enjoy one free international transfer each month plus exclusive discounts on top brands with Perks Plus.
Account fee of £0.
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Digital banking deals for October 2020

Read digital banking reviews

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

Watch digital banking video interviews

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.

Different types of app-based banking

App-based banking is different to 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.

Banking in lockdown: Is the honeymoon over for challengers?

Finder published a paper in September 2020 on how the coronavirus pandemic has changed banking and how the banking industry is adapting. Our paper includes original research from social analytics specialist BrandsEye and predictions from experts including Helene Panzarino, associate director of The London Institute of Banking & Finance, Jamie Broadbent, head of digital & innovation at RBS International, Nigel Verdon, CEO at Open Banking platform Railsbank and Jon Ostler, CEO of Finder UK.

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