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The popularity of non-physical, digital-only banks has grown in recent years in the UK, and the trend has shown no signs of slowing down soon, as banking app downloads in the UK increased in 2024. According to a survey of British people that either already had an account with a digital-only bank or intended to do so in the next 5 years, the main reasons for having such an account were better interest rates offered by such banks, and the convenience of money transfer.

Keeping it traditional

In the same survey, respondents that had chosen to stay with their current traditional bank did so mainly due to a form of loyalty. Over ** percent of respondents indicated that their current bank's treatment was the main reason for not switching across to a digital-only alternative. In general, digital banks are seeing an increasing number of customers switching across to their services.

Leading online banks

The UK’s migration across to using online banking has been steadily growing since 2007. As of 2023, the online banking penetration rate in the UK was ** percent. The largest digital banks in the UK all managed to expand their customer base significantly in recent years, with Revolut leading the way.