Digital banking statistics

Over 1 in 10 Brits have fully switched to a digital-only bank

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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.

The latest stats

  • Just over 1 in 10 Brits (12%) have fully switched to a digital-only bank.
  • Nearly half (47%) of those who use them keep less than £1,000 in a digital bank.
  • Two-thirds of banking customers say they plan to convert fully to a digital bank in the future.

What do Brits value from their primary banks?

A 2019 survey carried out in the UK found that digital banking services were rated as the best feature of people’s primary banks. Do people, therefore, consider digital services to be a critical component of their financial provider?

Banking features that Brits value

Service Percentage of people
Range of digital services 42%
Security 39%
Personal service 32%
Quality of advice 26%
Range of financial products and insurance offers 24%
Transparency 22%
Ease of switching 21%
Free-of-charge cash (including abroad) 20%
Range of payment options 19%
Lending conditions 10%
None of the above 7%
Don't know 12%
A range of digital services ranked as the most important feature among respondents, with 3% more people choosing this as the most important feature than those who chose security. A range of digital services also received almost double the popularity that a range of financial products did.

Online banking popularity

Online banking popularity has increased steadily between 2012 and 2018.

The percentage of Brits that use digital banks

Year Online pentration
2012 52%
2013 54%
2014 57%
2015 58%
2016 64%
2017 68%
2018 74%
Since 2012, online banking has experienced an average year-on-year growth of 4%, and has reached a peak of 74% in 2018. The reason for this increase could come down to the fact that younger, more tech-savvy generations are more open to alternative banking platforms. These digital platforms are popular for their ease-of-use, convenience and low costs. At the moment, most people use these features to track their everyday spending and use other current accounts for big costs and salary payments. As trust is built in these digital banks, a positive trend in disruptor banks (including online-only banks), similar to the increase in digital banking, is anticipated.

The most popular disruptor banks in the UK in July 2019

The disruptor banks leading the digital revolution are Revolut and N26, with a combined 7.5 million customers.

Customer numbers for disruptor banks

Bank Number of customers
Revolut 4,000,000
N26 3,500,000
Monzo 2,000,000
monese 1,000,000
Yolt 500,000
Tandem 500,000
Starling Bank 490,000
At their current new customer growth rates, Revolut will have over 9 million customers and N26 almost 6 million customers by December 2020.

Sources used

    Statista
    Eurostat

Click here for more research. For all media enquiries, please contact

Matt Mckenna
UK communications manager
T: +44 20 8191 8806
matt.mckenna@finder.com@MichHutchison/in/matthewmckenna2

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