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Read more…Digital banking statistics 2023
How many Brits have a digital-only bank account in 2023?
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.
Although traditional banks are able to incentivise customers with lucrative switching offers, digital banks rely on releasing new innovative features. We looked for the latest stats on digital banking in the UK and carried out our own research on how people are using their accounts and their future intentions in banking.
The latest stats
- An estimated 93% of Brits were using online banking in 2022.
- In 2023, 24% of Brits have a digital-only bank account compared to only 9% in 2019.
- Around 5.3 million Brits (10%) intend to get a digital-only bank account in 2023.
- 89% of eligible payments in 2020 were contactless.
- Nearly half (49%) of those who opened or intend to open a digital-only bank account cited convenience as a driving factor.
- 16% of people have chosen to open or intend to open a digital-only bank account due to a lack of branches in their area.
- 53% of the silent generation cited this as the reason behind their decision to open a digital-only bank account.
- 1 in 4 (24%) traditional bank account holders do not trust digital-only banks.
- 1 in 3 (32%) Brits do not intend to get a digital-only bank account.
What percentage of adults have a digital bank account?
According to our research, around 12.6 million Brits (24%) already have a digital-only bank account in 2023. Around another 5.3 million Brits (10%) intend to get a digital-only bank account in 2023. By 2028, the number of digital-only bank account holders is predicted to be 22.6 million (43%). 2 in 5 Brits (39%) can imagine handling all of their finances online. Despite the rise of digital banking, about 1 in 3 (32%) Brits do not intend to get a digital-only bank account.
| Response | Percentage |
|---|---|
| I have already opened a bank account with a digital-only bank (e.g. Revolut, Monzo, Starling etc) | 23.75% |
| I intend to open a bank account with a digital-only bank in the next 12 months | 9.90% |
| I intend to open a bank account with a digital-only bank by 2028 | 8.95% |
| I would / will consider a digital-only bank after getting more information | 12.30% |
| I do not intend to open a digital-only bank account by 2028 | 32.35% |
| I don't have a bank account | 1.40% |
| None of the above | 11.35% |
What is the future of digital bank accounts?
As you might expect, the number of digital-only bank account holders is higher within younger age groups. 31% of gen Z have a digital bank account, which is 10 percentage points down from 2022. On the other end of the spectrum, 13% of the silent generation have a digital account (6 percentage points up from 2022).
As for which generation plans to switch to digital by the end of the year, gen Z leads the way with 18% intending to do so. 17% of millennials will switch by the end of 2023 as well as 3% of the silent generation and baby boomers.
Intentions over the next 5 years are similar. Gen Z leads, with 19% planning to go digital by the year 2028, slightly higher than the 16% of millennials who will do the same. As for the silent generation, under 1% will be going digital over the next 5 years.
| Generation | Already had a digital bank account | Plan to get one by end of year | Plan to get in next 5 years |
|---|---|---|---|
| Gen Z | 31% | 18% | 19% |
| Millenial | 31% | 17% | 16% |
| GenX | 24% | 8% | 7% |
| Boomer | 16% | 3% | 3% |
| Silent Generation | 13% | 3% | 1% |
Impact of bank branch closures
Traditional bank branch closures have left many Brits with no choice but to go digital-only. For 16% of those opening a digital-only bank account, a lack of physical branches in their area was a driving factor.
Older generations are disproportionately affected by branch closures, with over half (53%) of the silent generation citing this as the reason for switching, or considering switching, to a digital-only account.
| Generation | Percentage |
|---|---|
| Gen Z | 9.45% |
| Millenials | 15.14% |
| Gen X | 21.74% |
| Baby Boomers | 15.23% |
| Silent Generation | 52.94% |
Why do people open digital bank accounts?
When participants were asked why they opened or intend to open a digital-only bank account, the majority (64%) of answers were linked to convenience.
22% of Brits claimed that they were already looking to open a new account and digital seemed to be the easiest option, while a further 21% said that they wanted to be able to transfer money more easily. Another 21% claimed that using a digital-only bank is generally more convenient.
Millennials and gen Z value the ability to trade crypto and stocks with their digital-only bank account twice as much as older generations (14% versus 7%).
| Benefit | Percentage |
|---|---|
| I wanted an additional account and digital seemed to be the easiest option | 22.07% |
| I want to transfer money more easily | 21.01% |
| Using a digital-only bank is more convenient | 20.54% |
| I will get better rates | 19.72% |
| I want free transactions abroad | 18.08% |
| I think the apps are better with digital-only bank accounts | 17.84% |
| My friends and / or family recommended a digital-only bank | 15.73% |
| I like to receive real-time notifications on my spending | 15.38% |
| I like the look of the card that comes with digital-only bank accounts | 12.91% |
| I want to be able to trade stocks and cryptocurrency with my digital-only bank account (Revolut) | 11.50% |
| I wasn't happy with the customer service from my current (traditional) bank | 10.56% |
| There are no bank branches in my area anyway | 9.04% |
| My traditional bank branch closed in my local area | 8.80% |
| I don't trust traditional banks | 4.93% |
| Other, please specify | 1.29% |
Why do people not open a digital bank account?
Many people are not on board the digital train, with around 1 in 3 Brits (32%) not intending to get a digital-only bank account by 2028. 50% of traditional bank account holders stayed because of high customer service and 1 in 4 traditional bank account holders (24%) do not trust digital-only banks. 34% of people value having the option to speak to someone in person and do not intend to open a digital-only bank account.
| Benefit | Percentage |
|---|---|
| My current bank has always treated me well | 49.72% |
| I prefer having the option to speak to someone in person | 33.93% |
| I don't trust new digital-only banks | 23.85% |
| It is too much hassle to switch my main account and change my direct debits etc | 18.81% |
| It is too much hassle to open a new account | 17.25% |
| I wouldn't get better rates | 8.62% |
| I wanted / or want a switching bonus from a traditional bank | 5.38% |
| I don't know how to switch banks | 5.15% |
| I don't know how to open a new account | 4.03% |
| Other, please specify | 2.24% |
Online banking trend over time
Online banking popularity has increased steadily between 2007 and 2022, with an estimated 93% of Brits using some form of online banking in 2022. As the level of online banking increases, it may be seen as an indicator that Brits would be more willing to use digital-only banks as they become more used to banking online and on their mobile phones.
| Year | Online banking penetration |
|---|---|
| 2005 | 27% |
| 2006 | 28% |
| 2007 | 32% |
| 2008 | 38% |
| 2009 | 45% |
| 2010 | 45% |
| 2011 | 50% |
| 2012 | 52% |
| 2013 | 54% |
| 2014 | 57% |
| 2015 | 58% |
| 2016 | 64% |
| 2017 | 68% |
| 2018 | 74% |
| 2019 | 78% |
| 2020 | 80% |
| 2021 | 86% |
| 2022 | 93%* |
Sources used
- Finder survey 2023
- Statista
Click here for more research. For all media enquiries, please contact:
Matt Mckenna
UK communications manager
T: +44 20 8191 8806
UK communications manager
T: +44 20 8191 8806
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