27% of Brits have digital-only bank accounts

Over a quarter of Brits say they have at least one bank account with a digital-only bank.

According to research by finder.com, which surveyed 1,700, this represents a 4 per cent increase compared to last year when 23 per cent said they had an account with a digital bank.

It is also over three times the amount who had one in January 2019 (9 per cent).

A further 17 per cent of Brits intend to join a digital bank over the next five years, with 11 per cent planning to make the move over the next year.

This could mean that 44 per cent of consumers could have an account with a digital bank by 2026.

If this percentage were applied to the UK adult population, it would equal almost 23 million people.

The top reason for opening a digital account continues to be the “convenience” that digital-only banks provide, for the third year running (26 per cent).

The second most common reason was that users needed an additional account and that setting up a digital account “seemed to be the easiest option” (20 per cent).

Customers also wanted to transfer money more easily (19 per cent), making this the third biggest priority.

Despite the increase in digital-only banking customers, the number who aren’t considering one has actually risen.

Last year, 23 per cent of respondents said they aren’t considering a digital-only bank account, but this has risen substantially to 42 per cent in the latest survey, with 58 per cent of these saying they felt their incumbent bank had “treated them well”.

Additionally, 16 per cent felt their incumbent bank had performed “particularly well” during the pandemic, and over a third (36 per cent) said they preferred to speak to someone in a branch.

Matt Boyle, banking specialist at finder.com, said: “Digital banks are starting to become a serious part of the banking furniture.

He added: “The pandemic has also played a role in the rapid digitalisation of the banking industry, with some having no other choice but to take their finances online.”

    Share Story:

Recent Stories

The Rise of Instant Payments
Instant payments are creating new business opportunities for banks by providing more touchpoints than ever. With these evolutions underway, Featurespace brought leading industry experts together to discuss how they are protecting customers from fraudsters in real time, utilizing innovative and disruptive solutions to reduce fraud. Click here to find out more.

Offloading Cyber Risk in the Cloud
As cyber attacks and data breaches are in the news on an increasingly regular basis - with regulatory penalties and customer trust on the line for financial services firms - it has never been more crucial to be compliant in the cloud.

This video, with Akamai’s EMEA director of security technology and strategy Richard Meeus, will help explain what your company can be doing to make sure it’s not embroiled in the next big fine or front-page scandal.