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What's in this guide?
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.
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Updated February 25th, 2020
Digital banking deals for February 2020
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We review every digital bank, app and challenger. Our reviews are regularly updated to cover new features and releases.
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Latest digital banking news
JP Morgan Chase set to enter the UK digital banking market
JP Morgan Chase, one of the largest US banks is set to bring a new digital banking service to the UK with its Chase brand, it has been reported by Sky News. Read more…
MyPocket review
Here's all you need to know about the digital banking service that is aiming to make banking accessible to all. Read more…
Revolut launches Open Banking feature to see all your bank accounts in one place
Revolut has launched an Open Banking feature that allows you to see all your accounts directly from the Revolut app. Read more…
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.
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.
Read more on this topic
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JP Morgan Chase set to enter the UK digital banking market JP Morgan Chase, one of the largest US banks is set to bring a new digital banking service to the UK with its Chase brand, it has been reported by Sky News.
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MyPocket review Here's all you need to know about the digital banking service that is aiming to make banking accessible to all.
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Revolut launches Open Banking feature to see all your bank accounts in one place Revolut has launched an Open Banking feature that allows you to see all your accounts directly from the Revolut app.
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Alternatives to N26 We've compared the top challenger banks available in the UK to help you figure out which you can choose if you don't particularly like N26.
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Digital banking adoption This year's research showed that around 12 million Brits have a digital-only bank account, and this number could almost double over the next five years.
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N26 statistics Valued at £3.5 billion and having secured a total funding of £683 million, the Fintech startup has ambitious goals and it is time for you to jump onto the N26 bandwagon.
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Curve joins the Apple Pay party Challenger bank Curve is now available on Apple Pay, allowing customers to use their Apple devices to make purchases in stores across Europe.
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Monzo statistics Valued at £2 billion, and is expected to surpass 5 million customers by this time next year. It's time to get a digital bank account.
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Starling Bank boosts offering for business account customers New loans, overdraft limits and cash flow tool unveiled: Free access for the first 500 to sign up.
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Monzo to replace fixed overdraft fees with variable rates based on credit score Challenger bank Monzo is changing its overdraft pricing structure, following the financial regulator's decision to ban fixed overdraft fees from April 2020.