Quarter of Millennials and GenZs use challenger banks

One in four people under the age of 37 - those in so-called Millennial and Generation Z demographic groups - are using digital-only challenger banks and 14 per cent of UK bank customers across all age groups have at least one mobile-only digital banking provider – with up to a third of under 37s having two or more accounts with challenger banks.

This is according to an independent study undertaken by Censuswide on behalf of Crealogix in November, interviewing 2,000 18-65 year olds who currently have a bank account.

While the major banks maintain their dominant market share of current accounts at 87 per cent, the digital-only banks are gaining ground amid high levels of activity in new account opening – 44 per cent of respondents have opened at least one new bank account in the last five years, increasing to almost 80 per cent of Gen-Zs.

The research found that 61 per cent of UK bank account customers are thinking about opening an account with a new provider in the next three years. This trend increases with Millennials and Gen Zs, with 75 per cent looking to open a new account in the next three years.

It also suggested that newcomers are picking up market share at a rapid pace.

German challenger bank N26 feature in the survey results even though it only just launched in the UK in October – three per cent of Gen-Zs and 2.5 per cent of Millennials said they have an N26 account, which would include people who signed up for early access or are still on a waiting list.

The most popular mobile-only digital challenger banks were found to be Starling, Revolut and Monzo - Monzo being the most popular for the under 37s.

Preferences changed markedly for older respondents, which overall are much less likely to use a challenger bank – only six per cent of over-55s said they had an account with one of the leading challenger brands. Those who do have accounts with challengers preferred to use Revolut and Atom Bank.

Jo Howes, commercial director at Crealogix, said the figures clearly show that the challenger banks are making rapid progress and gaining market share.

“Our research shows that consumers are attracted to the convenience, usability, and personalisation available from the challengers – to respond to the challenge, established banks need to accelerate their digital transformation and prioritise customer-oriented features and benefits.”

Anton Zdziebczok, head of product strategy at Crealogix, added: “The question for incumbents - including both bank and building societies - is how they can transform their own offerings into something with enough appeal to compete with this influx of innovative competitors.”

    Share Story:

Recent Stories


Safeguarding economies: DNFBPs' role in AML and CTF compliance explained
Join FStech editor Jonathan Easton, NICE Actimize's Adam McLaughlin and Graham Mackenzie of the Law Society of Scotland as they look at the role Designated Non-Financial Businesses and Professions (DNFBPs) play in the financial sector, and the challenges they face in complying with anti-money laundering and counter-terrorist financing regulations.

Ransomware and beyond: Enhancing cyber threat awareness in the financial sector
Join FStech editor Jonathan Easton and Proofpoint cybersecurity strategist Matt Cooke as they discuss the findings of the State of the Phish 2023 report, diving into key topics such as awareness of cyber threats, the sophisticated techniques being used by criminals to target the financial sector, and how financial institutions can take a proactive approach to educating both their employees and their customers.

Click here to read the 2023 State of the Phish report from Proofpoint.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.

Future of Planning, Budgeting, Forecasting, and Reporting
Sage Intacct is excited to present FSN The Modern Finance Forum’s “Future of Planning, Budgeting, Forecasting, and Reporting Global Survey 2022” results. With participation from 450 companies around the globe, the survey results highlight how organisations are developing their core financial processes by 2030.