Spotlight

UK Digital Account Opening Forecast 2022

How Slow Yet Steady Growth Will Drive Competitive Dynamics

Report by Tiffani Montez  | Dec 12, 2022
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Table of Contents
Executive Summary
Steady Growth Will Alter Competitive Dynamics
Digital Bank Account Opening: The Industry Reset
Incumbents Kick-Start Growth in 2022
Read Next
Sources
Media Gallery
About This Report
Demand for digital accounts will decrease YoY in 2022 due to economic volatility, with growth tapering off in 2023 and stagnating by 2024.
Topics
Digital Banking
UK
Table of Contents
Executive Summary
Steady Growth Will Alter Competitive Dynamics
Digital Bank Account Opening: The Industry Reset
Incumbents Kick-Start Growth in 2022
Read Next
Sources
Media Gallery

Executive Summary

Total digital account opening will sink in 2022 by 25.9% year over year (YoY), a faster slide than in any previous year in our forecast. Annual growth is set to hit 0.4% in 2023 and remain below single digits through 2026, creating an environment of fierce competition between incumbents and neobanks.

Key Question: How will incumbents and digital-only banks, aka neobanks, be able to acquire new customers in the face of a possible recession?

Total UK Digital Account Openings, 2019-2026 (millions and % change)
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KEY STAT: Since 2019, total digital account openings surged by 30.0% to 6.4 million in 2021, and they’ll nosedive 25.9% in 2022 as the industry experiences a reset.

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Table of Contents

  1. Executive Summary
  2. Steady Growth Will Alter Competitive Dynamics
  3. Digital Bank Account Opening: The Industry Reset
  1. Incumbents Kick-Start Growth in 2022
  2. Read Next
  3. Sources
  1. Media Gallery

Charts in This Report

Total UK Digital Account Openings, 2019-2026 (millions and % change)Digital-Only Bank Account Holders and Penetration in the UK, 2019-2026 (millions and % of population)
Digital-Only Bank Account Openings vs. Traditional* Digital Bank Account Openings in the UK, 2019-2026 (millions )

authors

Tiffani Montez

Contributors

Tyler Brown
Senior Analyst
Caitlin Cahalan
Researcher, Financial Services
Brian Lau
Forecasting Analyst