Current account numbers have remained fairly stable in recent years. However, Mintel estimates show a significant rise in 2023, to 78.9 million accounts. This has been consolidated in 2024, with marginal further growth.
The lingering effects of the cost of living crisis continue to impact the current account market, raising the perceived value of cash incentives for switching. Almost half of account holders say a cash welcome bonus would encourage them to switch. Although some providers have started to reduce such incentives, they remain key, especially as consumers look to make their money work harder for them to save in the current climate.
The primary challenge in the market is the low perceived value of fee-paying accounts among non-users. Targeted communication is essential to address this. Customer testimonials can build trust and effectively showcase benefits, given the positive reviews among premium account holders.
There remains a sizeable opportunity for digital banks to continue to grow. A growing number of account holders who say they are likely to switch accounts in the next 12 months believe that digital-only banks can offer the same level of customer service as those with branches, presenting opportunities for FinTech challengers able to offer competitive products and switching incentives.
For the purposes of this Report, Mintel has used the following definitions:
Basic current account – designed for those with a poor credit score, it does not carry any charges. Customers can set up direct debits and are provided with a debit card, but the account typically does not come with an overdraft facility or in-credit interest.
Standard current account – based on the free-if-in-credit model, it does not carry any charges provided there are sufficient funds in the account to meet any payments made.
Student and graduate current accounts – variants of the free-if-in-credit model and may offer special features, such as an interest-free overdraft.
Premium or packaged current account – usually involves the customer being charged a monthly fee in return for a range of additional benefits, such as travel insurance and motor breakdown cover.
Reward current account – usually offers a cash bonus or reward upon switching, and offers cash rewards for paying in a set amount of money each month or for paying utility bills with the account.
Saltanat joined Mintel in October 2023 as a research analyst in the financial services team. Prior to joining Mintel, Saltanat has worked as a consultant in the real estate sector. She has a PhD in Development Studies with trained backgrounds in Anthropology and International Politics.
Brands need to prove fee-paying accounts’ value for money to non-users, while digital innovation and enticing offers are vital for gaining consumer loyalty.
Saltanat Kuermannal
Financial Services Analyst
Mintel is the world’s leading market intelligence agency. We show you how consumers think today and tomorrow. As a trusted partner to industry leaders, we deliver game-changing insights to businesses across the globe, fuelling their marketing and innovation strategies that will shape the future.
Access high-quality market research with every purchase of Mintel’s consumer reports. Here’s what else is included in your report purchase:
From consumer reports to customised growth strategies. We have an option to suit your business requirements.
Find out more£ 5,000 – £ 21,600
Mintel’s 2024-25 Global Outlook on Sustainability: A Consumer Study is designed to help you understand what brands and companies should prioritise in order to educate consumers and ensure...
Find out more£ 2,195
Sustainability is already playing a role in how people choose new banks, and this is likely to grow as climate change progresses. 90% of Gen Z say it...
Find out more£ 2,195
During uncertain economic times, cost-effective credit options form an important part of consumers' finances. The last two years of rising prices have affected the ability to spend and...
Find out more£ 2,195
Charities are navigating a challenging landscape. Potential donors' finances are still feeling the squeeze, charities face higher operational costs and, for many, higher demand for services from vulnerable...
Find out more£ 2,195
“Despite the long-term shift towards digital banking, branches still have a role to play for many consumers. Satisfaction levels remain high despite widespread branch closures in recent years....
Find out more£ 2,195
“Despite the efforts banks make towards ethical and socially responsible practices, they often struggle to convince consumers that they have a social conscience. Concerns regarding unfair business practices,...
Find out more
We use Mintel to inform our thinking and reinforce strategy. If you’re presenting new ideas, it’s essential they are underpinned by robust data and evidence, and clearly rooted in fact.
Mintel gives us all that. It’s a great brand and one that is trusted by clients.
When I’m investigating specific sectors I tend to use Mintel reports for their forecasting, which I’ve always found to be very accurate.
They also offer really broad and deep coverage in their reports. They are very, very detailed. For example, we were able to gain insight across a wide range of business areas from just one report, proving that Mintel is excellent value for money.
So overall, it’s the level of detail and the quality of forecasting that really stand out for me.
At Jackman, we believe that powerful strategies are based on human insight. Mintel’s leading-edge reports and insights into consumer attitudes and behaviors are an important input as we develop and execute strategy.
We use Mintel Reports, mostly for financial services and ecommerce markets, plus a few retail and technology ones.
As a leading payments provider, we value additional insights into consumer behaviour, opinions and trends that are shaping the many different markets we operate in. Mintel is a very good and very quick way for us to obtain those insights.
We use Mintel to get a view on where a particular market is going, which can support us in product development and help us identify opportunities or indeed risks, it is a very useful barometer of a market’s potential.
We have such a great working relationship with Mintel on lots of different levels. As an insight partner, they have helped us to develop our business planning in specific categories as well as supporting our creative process but they’ve also been super helpful with facilitating our events in their inspirational offices near St Paul’s.
They’re an innovative company, with a client-focused team that always delivers.
From consumer reports to customised growth strategies. We have an option to suit your business requirements.
Find out more
