One in Two Britons Utilizes Neobanks and Financial Technology Services

The acknowledgment of digital financial service providers is increasing in the U.K., while traditional banks are experiencing a decline in market share. The market share of the six largest banks fell from 85% to 71% over a span of four years.

The proportion of customers favoring neobanks and FinTech platforms rose from 16% in 2018 to 50% in 2024, according to a study by RFI World, conducted between December 2024 and January 2025 among 4,000 U.K. consumers. An increasing number of Britons are opting for neobanks (Monzo, Starling, and Revolut) and FinTech firms (Klarna) as their primary financial service providers.

In 2020, only 1% of consumers used a neobank for their primary debit card, but by the end of 2024, this figure had increased to 9%. During the same timeframe, the market share of the six largest U.K. banks decreased from 85% to 71%. Furthermore, neobank cardholders tend to spend, on average, 20% more than those using traditional bank cards.

The main factor driving the adoption of FinTech is convenience and technological advancement. Hubert Petka, Group Director at RFI World, pointed out that digital banks are particularly popular among Gen Z and Millennials, who prioritize flexibility, transaction speed, and modern financial tools. He also highlighted that neobanks are likely to continue gaining influence and could pose a significant challenge to traditional financial institutions in the years ahead.

In light of the growth of digital financial services, the CEO of Bank of America recently stated that banks and other traditional financial entities in the U.S. are interested in implementing cryptocurrency payments, contingent upon clear regulatory guidelines.

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