Digital banks offer simple, fee-free services for people wanting to track their spending immediately from their digital devices. Although traditional high street banks continue to incentivise customers with lucrative switching offers, digital-only banks are becoming increasingly popular and offer their own perks like sign-up bonuses. We look at the latest digital and online banking statistics in the UK.
Digital banking statistics: Highlights
87% of UK adults use a form of online banking or remote banking, which is around 47 million people.
3 in 5 UK adults (60%) use mobile banking, around 32 million people.
2 in 5 Brits (40%) have a digital-only bank account in 2025, up from 36% in 2024 and a quarter (24%) in 2023.
1 in 8 Brits (13%) intend to open a digital-only bank account within the next 5 years.
Overall, more than half of Brits (57%) either have or intend to open a digital-only bank account.
15% of Brits chose to open or consider a digital bank account because of higher interest rates, the top attracting factor.
What proportion of UK adults use online banking?
87% of adults in the UK use some form of online banking or remote banking, which is around 47 million people. Furthermore, 3 in 5 UK adults (60%) use mobile banking, which equates to around 32 million people.
How many UK adults have a digital-only bank account?
Our recent survey found that 2 in 5 Brits (40%) have a digital-only bank account in 2024, equating to around 21.5 million people. The number of people with a digital-only bank account has increased significantly over the past two years, jumping from an estimated 12.6 million (36%) at the start of 2023 and increasing again from 19.2 million (24%) at the start of 2024.
I will not consider opening an account with a digital-only bank
26.1%
I am unsure whether I want to open a digital-only bank account
17.4%
I intend to open a bank account with a digital-only bank in the future (more than a year)
9.5%
I intend to open a bank account with a digital-only bank in the next year
6.9%
How many people intend to open a digital-only bank account?
Overall, 17% of Brits don’t currently have a digital-only bank account but intend to open one at some point. This includes 7% of Brits who intend to open one in the next year, and 10% who intend to open one at some point in the future.
I will not consider opening an account with a digital-only bank
26.1%
I am unsure whether I want to open a digital-only bank account
17.4%
I intend to open a bank account with a digital-only bank in the future (more than a year)
9.5%
I intend to open a bank account with a digital-only bank in the next year
6.9%
Why do people open digital bank accounts?
The top reason for opening a digital-only bank account was better interest rates, which was given by 15% of Brits.
The savings landscape is constantly shifting, but analysis shows that digital-only banks do now tend to offer higher interest rates. Finder analysed instant access savings rates and found that, on average, the interest rates at the main digital-only banks are more than double those at the ‘big four’ high street banks.
Looking at the largest 4 traditional banks in the UK, the average rate on the main instant access savings product is 1.52% AER. Meanwhile, at 4 of the main digital banking providers, the average rate on the equivalent instant access account was 3.35% AER, giving customers more than twice in interest on their savings.
Just under 15% of UK adults opened or are considering a digital-only bank account because they want to transfer money more easily, while 13% felt it would be a more convenient option for them.
Other common reasons for turning to digital-only banking included wanting free transactions abroad (12%), preferring digital-only banking apps (10%) and recommendations from friends and family (9%).
Lack of bank branches / branch closures in local area
6.3%
Why are Brits unsure about opening a digital bank account?
Among those we surveyed who were unsure about or opposed to opening a digital-only bank account, there were several reasons for this.
The top reason for not opening a new digital-only bank account was loyalty to a current bank, and this was given by a fifth (21%) of this group. The next most popular reason was that people preferred to have the option to speak to someone or use the physical services in the branch, which was chosen by 15%.
Another common reason for not opening a digital-only bank account was a concern about the risk of payment fraud or a cybersecurity breach, a driving factor for 12% of those who hadn’t opened an account.
I prefer having the option to speak to someone in person and use in-branch services
15.4%
I am concerned about the risk of payment fraud or cybersecurity breaches
11.5%
Too much hassle to open one
4.4%
I don't know how to open one
4.1%
I wouldn't get better interest rates
1.7%
I wanted / or want a switching bonus from a traditional bank
1.4%
Digital banking adoption by generation
As you might expect, the number of digital-only bank account holders is higher among younger generations.
More than half of generation Z (55%) and millennials (56%) hold at least one digital-only bank account in 2025. Meanwhile, less than 1 in 4 baby boomers (24%) and members of the silent generation (23%) hold a digital-only bank account. Generation X-ers sit somewhere in the middle, with around a third (35%) adopting a digital-only bank account.
Around 1 in 5 millennials (20%) and 1 in 4 from generation Z (23%) who do not currently have a digital bank account intend to open one at some point in the future, as well as 18% of those in generation X.
This plan for future adoption is less prominent amonng the older generations, with only 9% of baby boomers and 6% of the silent generation intending to open a digital-only bank account.
Traditional banks are closing more and more branches across the UK, leaving many Brits with no choice but to embrace digital banking. In fact, for 11% who opened or are considering a digital-only account, the lack of bank branches in their local area was a driving factor.
Case study: Bank branch closure has left Samantha stressed
"When I found out that the branch was being closed, it was really frustrating, to say the least. It has made sure it’s harder for me to access actual face-to-face support. It’s meant that if I have a problem, I have to call or use my mobile banking app to access support.
There was no support offered or in place. To be honest, there wasn’t very much warning either, and it was only by chance that I discovered it was closing. No information was sent out or even uploaded onto the mobile app."
Sophie Barber is a senior content marketing manager for Finder in the UK. She has over 5 years experience in writing and publishing clear, concise and informative articles that help consumers make informed decisions. See full bio
Sophie's expertise
Sophie has written 97 Finder guides across topics including:
Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio
Matthew's expertise
Matthew has written 279 Finder guides across topics including:
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