Leading reasons for opening an app-only bank account Great Britain 2023

The popularity of non-physical, app-only banks has grown in recent years in the United Kingdom, and the trend has shown no signs of slowing down soon. 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 was the convenience of banking online, and that digital banks are easier to use.

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. Approximately half of respondents indicated that their current bank had treated them well as the main reason for not switching across to an app-only alternative. In general, neobanks are seeing an increasing number of customers switching across to their services.

Banking online

The UK’s migration across to using online banking has been steadily growing since 2007. As of 2020, the online banking penetration rate in the UK was 76 percent. As app-only banks such as Revolut, Monzo and N26 grow from disruptors towards challengers, traditional banks have looked to grow the number features that their own apps support.