New digital bank Chase is set to open its virtual doors in the UK in 2021. Here’s what we know about it so far.Read more…
Digital banking statistics 2021
Over a quarter of Brits (14 million) have opened a digital-only bank.
What's in this guide?
- The latest stats
- What do Brits think their primary banks are good at?
- Online banking popularity
- The most popular disruptor banks around the world
- High street vs Digital Banking: which banks are winning customers?
- High street vs Digital Banking: consumer opinions over the COVID-19 pandemic
- Most common digital bank customer complaints
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
New to Chip? See if you can keep some more money in your pocket with our promo codes and special offers.Read more…
Revolut Plus is the latest current account to be offered by digital banking brand Revolut – we take a look at its features and fees.Read more…
The inaugural awards recognise the banking and personal finance brands displaying the best innovations in their field.Read more…
The salary advance function will enable up to three million account holders to access their pay packet a working day early.Read more…
Customers can now access their accounts and card settings from a desktop or laptop, as well as through their smartphone app.Read more…
More guides on Finder
Does the UK know how much it needs to save up for retirement?
Finder’s Bitcoin Predictions Report: December 2020
We asked 47 experts for their cryptocurrency price predictions and took a deep dive into the Bitcoin price rally.
Cryptocurrency statistics 2021
We explore the latest statistics in the world of cryptocurrency including who is and isn’t buying cryptocurrency, as well as who has made their millions off these virtual currencies.
How to buy Bitcoin (BTC) in the UK
Want to buy Bitcoin but don’t know where to start? This comprehensive guide provides step-by-step instructions on how and where to buy BTC in the UK.
Over a quarter of Brits now have an account with a digital-only bank
Currently over a quarter of Brits (27%) say they have at least one bank account with a digital-only bank. This is a percentage increase of 16% from last year when 23% of Brits said they had an account with a digital bank. It is also over 3 times the amount of Brits who had one in January 2019 (9%).
Revolut Plus review
Revolut Plus is the latest current account to be offered by digital banking brand Revolut – we take a look at its features and fees.
Parking fines: Which UK city issues the most tickets?
Are you driving to do your Christmas shopping this year? Find out which city issues the most parking fines during the festive season.
Opening a bank account after bankruptcy
A bankruptcy will impact all aspects of your financial life, including your bank account. But you should be able to open a new one to at least meet your basic banking needs.
Opening a second bank account
Discover whether it’s possible for you to open a second bank account, plus the pros and cons of doing so.
Best bank accounts
Discover how to find the best bank account for your needs.
Ask an Expert