The popularity of digital financial services is growing in the U.K., while traditional banks are losing market share. The six largest banks’ market share dropped from 85% to 71% in four years.
The share of users preferring neobanks and FinTech platforms increased from 16% in 2018 to 50% in 2024, according to a study by RFI Global, conducted between December 2024 and January 2025 among 4,000 U.K. consumers. More Britons are choosing neobanks (Monzo, Starling, and Revolut) and FinTech services (Klarna) as their primary financial providers.
In 2020, only 1% of users held their primary debit card in a neobank, but by the end of 2024, this figure rose to 9%. During the same period, the six largest U.K. banks’ market share shrank from 85% to 71%. Additionally, neobank cardholders spend on average 20% more than customers using traditional bank cards.
The key driver of FinTech adoption is convenience and technological advancement. Hubert Petka, Group Director at RFI Global, noted that digital banks are particularly popular among Gen Z and Millennials, who value flexibility, transaction speed, and modern financial tools. He also emphasized that neobanks will continue to gain influence and could seriously challenge traditional financial institutions in the coming years.
Amid the rise of digital financial services, the CEO of Bank of America recently stated that banks and other traditional financial institutions in the U.S. are interested in adopting cryptocurrency payments, pending clear regulatory frameworks.
