Banking industry in the UK - statistics & facts

The banking industry in the UK has witnessed notable developments and trends in recent years, reflecting changes in banking system efficiency, structural transformations such as the declining number of bank branches, and shifts in consumer behavior toward online banking. In terms of banking system efficiency, in 2022, total assets within the sector saw a notable increase, rebounding from a slight decline observed in 2021. Notably, the UK is home to one of the largest banks in the world, HSBC, with assets exceeding 2.3 trillion British pounds in June 2023. After undergoing a sharp decline in early 2022, the primary capital ratios of the banking sector stabilized toward the end of 2022 and 2023, hinting at confidence in the sector’s resilience and stability. This stabilizing banking industry landscape is accompanied by the declining number of bank branches and the rise of digital banks.

Branching out: the decline of traditional banking spaces

Over the past decade, the number of credit institutions in the UK has shown stability, with only minor fluctuations. Despite this consistency, there has been a significant decline in the number of bank branches, nearly halving in number. This phenomenon is not exclusive to the UK but reflects a broader trend observed across the European Union, where the number of bank branches dropped from around 206,000 to 133,000 between 2012 and 2022. The primary driving force behind this shift is the steady increase in online banking usage. Between 2012 and 2022, online banking usage in the UK almost doubled, indicating a substantial shift in consumer behavior. As a result, mobile and online banking have emerged as the primary methods for processing banking affairs. This transition toward digital banking channels has reshaped the banking landscape, leading to the consolidation and closure of physical branches as institutions adapt to meet the evolving needs and preferences of their customers.

Digital banking boom: customer surge amid profit struggle

Some of the largest digital banks in Europe are based in the UK, including Revolut, Wise, Monzo, Starling, and Monese. Among these, Revolut boasts by far the highest number of customers, with a 35 million user base worldwide. Most of its user base is in the UK, with the UK accumulating the vast majority of its downloads. While these digital banks have successfully expanded their customer bases recently, profitability remains a challenge. Revolut reported profits for the first time in 2021, followed by Starling Bank in 2022. However, Monzo, along with Atom Bank and Monese, continues to report losses, highlighting the financial hurdles faced by many digital banks despite their growing popularity and user adoption.
This text provides general information. Statista assumes no liability for the information given being complete or correct. Due to varying update cycles, statistics can display more up-to-date data than referenced in the text.
Published by Statista Research Department, Feb 23, 2024

Key insights

Number of credit institutions
377
Bank assets as a percentage of GDP
563.44%
Most valuable banking brand
HSBC
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