New digital bank Chase has now opened its virtual doors in the UK. Find out more about its free current account.Read more…
Digital banking statistics 2021
Over a quarter of Brits (14 million) have opened a digital-only bank.
Digital banks (such as Monzo, Revolut and Starling Bank) offer simple, fee-free services for people wanting to track their spending immediately from their digital device. Our data shows that people really value good digital services from their bank, which helps explain the consistent increase in online banking use over the last 10 years. We looked for the latest stats on digital banking in the UK, along with carrying out our own research on how people are using their accounts and their future intentions when it comes to banking. Some digital banks have even been recommended in a list of the best banks in the UK.
The latest stats
According to our survey:
What do Brits think their primary banks are good at?
Banking features that Brits value
Online banking popularity
The percentage of Brits that use online banking
The most popular disruptor banks around the world
We looked at some of the latest statistics to see which disruptor bank is the most popular in the UK.
Total number of app downloads
The most popular disruptor bank in the UK by app downloads in 2020 is Monzo, with over 4.4 million downloads. This is nearly 2 million downloads more than the next biggest challenger bank by app downloads, Revolut, who have 2.5 million app downloads. Starling Bank has had 2.2 million app downloads and Monese has had over 1 million downloads.
|Bank||Number of downloads (UK)|
High street vs Digital Banking: which banks are winning customers?
Looking at 2020’s third quarter (1 July – 30 September), Starling Bank and Monzo made net gains of 12,652 and 9,157 customers respectively, while Barclays, HSBC, NatWest and Santander all made net losses.
Halifax had the highest overall increase in customers, with a net gain of 22,742 customers. However, Halifax was offering a switch deal during this period and was the only high-street bank to make considerable gains.
The data shows a 65% drop in total switches during lockdown vs the first three months of 2020, which reflects a decline in the number of switching incentives while banks seemed to focus on their existing customers.
|Bank of Scotland||2,513||1,846||667|
|AIB Group (UK)||44||304||-260|
|Bank of Ireland||57||331||-274|
High street vs Digital Banking: consumer opinions over the COVID-19 pandemic
Customer sentiment towards 10 of the UK’s biggest high-street and digital-only banks fell by 7 percentage points (pp) during lockdown, according to our new research from finder.com and social analytics specialist BrandsEye.
This leaves overall consumer sentiment for the banking industry at -24% on a possible scale of +100% to -100% for the period between 1 March and 31 July.
However, over 800,000 social media posts from customers revealed that digital banks saw a sentiment decline of almost three times that of high-street banks during the pandemic. On average digital-only banks’ customer sentiment fell by 14pp compared to just 5pp for high-street banks.
While this is a blow for digital-only banks, it should be noted that high-street banks had, and continue to have, a much lower overall sentiment (-13% vs -35% currently).
|Sentiment pre-lockdown||Sentiment post-lockdown||Percentage point difference|
Most common digital bank customer complaints
53% of digital bank customers felt negatively about their provider during the lockdown, with savings rates being the main problem (21%).
Customers’ main method of interacting with their digital-only bank is through an app, so this is perhaps why customers’ second biggest issue was around their bank’s app (15%).
Poor customer service appeared to be a running theme with 14% of digital-only banks’ customers complaining about the level of customer service they received over the phone and digitally.
Can't get enough information about digital banking?
- Digital banking adoption
- Digital bank usage
For more digital banking information, check out our banking adoption statistics page. finder conducted a digital banking adoption survey to get a feel of what the British public thinks.
Almost half (47%) of Brits are keeping £1,000 or less in their digital-only bank accounts with 3 in 10 (30%) holding less than £100 in their accounts. Across all accounts, the average amount held is £3,214. What other trends can we see in the Brits digital bank usage?
- Current Account Switch Service (CASS)
Click here for more research. For all media enquiries, please contact
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