The UK Digital-Only Banks Report

How Incumbents Can Capture Digital Banking Users amid Tearaway Neobank Growth

Executive Summary

UK digital-only banks—particularly neobanks—have broken into the mainstream, but not into steady profits. Under pressure from investors, neobanks are trying a range of strategies to diversify their revenue streams. Whether they can pull it off remains to be seen, so incumbents should seize this moment of flux to secure a bigger share of UK digital account holders.


  • What are the strengths, weaknesses, and long-term risks for the most developed UK neobanks?
  • Which major disruptors could rattle the UK consumer banking market?
  • How can UK incumbents counter the neobank threat?

WHAT’S IN THIS REPORT? This report delves into the largest UK neobanks’ growth and what’s fueling their rise, explores the challenges they face as the market evolves, and presents actionable steps that incumbents can take to strike back and win over digital account holders.

KEY STAT: By 2025, the UK’s cohort of digital-only banks—predominantly neobanks—will have captured more than half of the UK’s digital banking users, and almost 40% of adults overall.

Here’s what’s in the full report


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Table of Contents

  1. Executive Summary
  2. Key Points
  3. Introduction
  4. The Rise of UK Neobanks
  1. Top Neobanks Under the Microscope
  2. How Neobanks’ Fight for Profit Is Shaking Up the Industry
  3. Potential Disruptors for UK Banks
  4. How Incumbents Can Fight Back
  1. Read Next
  2. Sources
  3. Media Gallery

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Maria Elm


Tyler Brown
Senior Analyst
Oscar Bruce Jr.
Senior Forecasting Analyst
Cindy Liu
Senior Forecasting Analyst
Daniel Ramirez
Researcher, Financial Services
Daniel Van Dyke
VP, Content