Digital banks offer simple, fee-free services for people wanting to track their spending immediately from their digital device. Although traditional banks can incentivise customers with lucrative switching offers, digital banks are becoming increasingly popular. We look at the latest digital and online banking statistics in the UK.
Digital banking statistics: Highlights
86% of UK adults use a form of online banking or remote banking, which is around 46 million people.
More than half (53%) of UK adults, around 28 million people, use mobile banking.
More than a third of Brits (36%) have a digital-only bank account in 2024, up from a quarter (24%) at the start of 2023.
1 in 10 Brits (10%) intend to open a digital-only bank account within the next 5 years.
Overall, half of Brits (49%) either have or intend to open a digital-only bank account.
Loyalty to an existing banking provider is the top reason for not opening a digital account, given by over half (53%) in this group.
What proportion of UK adults use online banking?
86% of adults in the UK use some form of online banking or remote banking, which is around 46 million people. Furthermore, more than half (53%) of UK adults use mobile banking, which equates to around 28 million people.
How many UK adults have a digital-only bank account?
Our recent survey found that more than a third of Brits (36%) have a digital-only bank account in 2024, which would equate to around 19 million people. The number of people with a digital-only bank account has increased significantly since last year, jumping from an estimated 12.6 million at the start of 2023 to 19.2 million at the start of 2024.
1 in 10 Brits (10%) intend to open a digital bank account in the next 5 years, including 6% who want to open one in 2024.
However, recent reports from the Current Account Switch Service (CASS) show that although digital banks are gaining new customers, they struggle to retain them. In the first half of 2023, digital banks saw a total loss of over 20,000 accounts via the switching service.
It could be that consumers view digital-only banks as additional accounts used for benefits such as cheap overseas payments or conveniently transferring money, but not necessarily viewing them as their main account. We explore the reasons people open digital-only accounts in more detail below.
I have opened an account with a digital-only bank within the last year
20%
I opened an account with a digital-only bank more than a year ago
16%
I intend to open a bank account with a digital-only bank in the next 12 months
6%
I intend to open a bank account with a digital-only bank in the future
8%
I am unsure whether I want to open a digital-only bank account
16%
I will not consider opening an account with a digital-only bank
35%
What is the future of digital bank accounts?
As you might expect, the number of digital-only bank account holders is higher among younger generations.
More than half of generation Z (55%) and half of millennials (50%) hold at least 1 digital-only bank account in 2024. Meanwhile, just 1 in 5 members of the silent generation and baby boomers hold a digital-only bank account (21% each) and a third of generation X (34%).
Just under 1 in 5 millennials and generation Zers (18%) who do not currently have a digital bank account intend to open one at some point in the future, as well as 15% of those in generation X.
While a similar number of baby boomers and the silent generation currently have a digital-only bank account, more baby boomers intend to open one than the latter, with 8% compared to just 2%.
A quarter of those who have opened a digital bank account did so because they wanted an additional bank account and digital seemed easiest. A further 23% wanted to transfer money more easily, and 1 in 5 (20%) felt it would be more convenient.
Interestingly, 1 in 5 (20%) opened a digital bank account to get better interest rates. This comes in a year when digital accounts such as Chip have been providing competitive interest rates to consumers, while traditional banks have sometimes been slower to pass on rising internet rates to consumers.
Other reasons for switching to digital banking included wanting free transactions abroad (17%), preferring digital-only banking apps (15%), not having a traditional bank branch in the local area (12%), being unhappy with the customer service from their existing bank (11%) and wanting to trade stocks and cryptocurrencies with their new account (10%).
I wanted an additional account and digital seemed to be the easiest option
25%
I want to transfer money more easily
23%
Using a digital-only bank is more convenient
20%
I will get better interest rates
20%
I want free transactions abroad
17%
My friends and / or family recommended a digital-only bank
17%
I think the apps are better
15%
Lack of traditional bank branches in my local area
12%
I wasn't happy with the customer service from my current bank
11%
I want to be able to trade stocks and cryptocurrency with the account
10%
Impact of bank branch closures
Traditional banks are closing more and more branches across the UK, leaving many Brits with no choice but to embrace digital banking. In fact, for 12% who opened a digital-only account, the lack of bank branches in their local area was a driving factor.
This percentage increases significantly among the older generations, and the lack of bank branches was the top reason for members of the silent generation deciding to open a digital-only bank account, the driving factor for a third (32%) who did so.
Case study: Bank branch closure has left Samantha stressed
"When I found out that the branch was being closed, it was really frustrating, to say the least. It has made sure it’s harder for me to access actual face-to-face support. It’s meant that if I have a problem, I have to call or use my mobile banking app to access support.
There was no support offered or in place. To be honest, there wasn’t very much warning either, and it was only by chance that I discovered it was closing. No information was sent out or even uploaded onto the mobile app."
Samantha Evans
Wiltshire
Why are Brits unsure about opening a digital bank account?
Among those we surveyed who were unsure or opposed to opening a digital bank account, there were several reasons for this.
The most common reason for not opening a new digital-only bank account was loyalty to an existing banking provider, and this was given by more than half (53%) of this group. This was followed by preferring to have the option to speak to someone or use the physical services in the branch, chosen by 37%.
Another popular reason for not opening a digital bank account was a concern about the risk of payment fraud or a cybersecurity breach, a driving factor for 1 in 5 (21%) of those who hadn’t opened an account.
This fear is more prevalent among the older generations, with almost a quarter (24%) of both baby boomers and the silent generation giving it as a reason for not yet opening a digital account, compared to 17% of millennials and generation Z.
Meanwhile, 11% believe it would be too much hassle to open a digital bank account, 9% don’t know how to open one, 7% believe they would not get better interest rates and 5% want to receive a switching bonus from a traditional bank.
Matthew Boyle is a banking and mortgages publisher at Finder. He has a 7-year history of publishing helpful guides to assist consumers in making better decisions. In his spare time, you will find him walking in the Norfolk countryside admiring the local wildlife. See full bio
Matthew's expertise
Matthew has written 285 Finder guides across topics including:
Helping first-time buyers apply for a mortgage
Comparing bank accounts and highlighting useful features
An estimated £1.3 billion has been spent on unwanted gifts in the UK, with around 31 million Brits receiving a gift they did not want.
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