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.
UK Current Accounts Market
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.
UK Current Accounts Market Statistics
- UK current accounts market consumer behaviour: 47% of account holders say a cash welcome bonus would encourage them to switch.
- UK current accounts market consumer behaviour: 68% of account holders who say they are likely to switch accounts in the next 12 months say digital-only banks can offer the same level of customer service as those with branches.
- UK current account market share: The Big 4 banking groups continue to dominate the market with 71% market share, led by Lloyds Banking Group and Barclays.
UK Current Accounts Market – What’s Inside?
Key Topics Analysed in this Report
- Examine the impact of the cost of living crisis on the current account market, including how it influences consumers’ intentions to switch accounts.
- Identify the types of current accounts held, and perceptions of fees and added benefits.
- Provide insights into digitisation and its influence on account ownership, and understand consumer attitudes towards services offered by digital-only banks versus those with physical branches.
- Stay informed about the latest developments in innovation and marketing trends.
Report Scope
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.
Meet the Expert Behind the Analysis
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
Collapse All
-
Executive Summary
- Opportunities for the current account market
- Tailored financial solutions beyond quality digital offerings for tech-savvy under-35s
- Close the gap in perceived value of fee-paying accounts with targeted communication
- Leverage trust in digital banks to attract frequent switchers
- Market dynamics
- Current account numbers are estimated to have topped 79 million
- Graph 1: estimated number of current accounts, 2020-24
- The Big 4 banking groups dominate the market
- Graph 2: current account ownership, by types of provider, 2024
- Bank branch networks continue to shrink
- Graph 3: bank and building society numbers, 2017-23
- What consumers want and why
- Four in five account holders hold a regular current account
- Joint current account ownership is more common among older couples
- Graph 4: joint account ownership, by lifestage by age, 2024
- One in five Brits are likely to switch their main current account in the next 12 months
- Cash is the biggest incentive to switch current account provider
- Efforts needed to enhance the perceived value of fee-paying accounts
- Innovation and marketing
- Current account advertising increases after a sharp decline in 2022/23
- Graph 5: total above-the-line, online display and direct mail advertising on current accounts, 2019/20-2023/24
- Current Account Switch Service reassures potential switchers with its new advert
- Monzo and Greggs’ Sausage Roll ATM advert
-
Market Dynamics
- Market size
- Current account numbers are estimated to have topped 79 million…
- Graph 6: estimated number of current accounts, 2020-24
- …primarily due to the rise in multiple account ownership
- Market share
- The Big 4 banking groups dominate the market
- Graph 7: current account ownership, by types of provider, 2024
- Lloyds is the market leader on a group basis
- Graph 8: current account ownership, by banking groups, 2024
- Barclays and Lloyds Bank lead the main account market
- Graph 9: main account market share, 2024*
- Graph 10: multiple account market share, 2024**
- New digital bank customers predominantly hold two or more accounts
- Graph 11: type of current account provider used, by number of current accounts held, 2024
- Market drivers
- CPI inflation is still a major concern for many consumers
- Graph 12: CPI inflation, 2021-24
- Current account overdraft usage is set to rise despite higher costs
- Graph 13: interest rates on unsecured credit products, 2020-24
- Financial wellbeing and confidence remain fragile
- Graph 14: financial confidence index, 2020-24
- Graph 15: financial wellbeing index, 2020-24
- Bank branch networks continue to shrink…
- Graph 16: bank and building society numbers, 2017-23
- …as more customers opt for digital channels
- CASS switching activity steadily declines in 2024
- Graph 17: number of switches per month using the CASS, 2022-24
- Regulatory and legislative changes
- FCA releases final rules for access to cash regime
- JROC invites feedback on the future open banking entity
- Providers have increased fees for packaged bank accounts
-
What Consumers Want and Why
- Current account ownership
- Almost everyone in the UK has a current account
- Graph 18: current account ownership – NET, 2024
- Higher earners are more likely to hold two or more accounts
- Graph 19: current account ownership, by household income, 2024
- Under-45s are more likely to hold more than one account
- Graph 20: current account ownership – NET, by age, 2024
- Joint current account ownership is more common among older couples…
- Graph 21: joint account ownership, by lifestage by age, 2024
- …highlighting the need for enhanced features to better serve their needs
- Types of current account
- Four in five account holders hold a regular current account
- Graph 22: types of current account held, 2024
- Fee-paying account ownership increases with age
- Graph 23: types of current account – NET, by age, 2024
- Targeted marketing to boost fee-paying accounts ownership among multi-account holders
- Graph 24: types of fee-paying account held, by number of current accounts held, 2024
- Future current account switching intentions
- One in five Brits are likely to switch their main current account in the next 12 months…
- Graph 25: future intentions to switch current account(s) – NET, 2024
- …with under-35s most likely to switch
- Graph 26: future intentions to switch current account(s), by age, 2024
- Financially secure consumers are appealing and more likely targets for switching
- Graph 27: future intentions to switch current account(s), by financial situation, 2024
- Reasons to switch current accounts
- Cash is the biggest incentive to switch current account provider
- Graph 28: factors that would encourage current account holders to switch their main current account to a new provider, 2024
- Elevated interest rates prompt consumers to seek better deals on current account balances
- Improve accessibility and 24/7 customer service to boost appeal
- Overdraft rates need to be fair, but education is also key to improving financial well being
- Graph 29: reasons to switch, by financial situation, 2024
- Higher-earners are more interested in larger product ranges
- Graph 30: reasons to switch – NET, by household income, 2024
- Attitudes towards current accounts
- Almost all fee-paying customers are confident they know what they’re paying for
- Graph 31: attitudes towards current accounts, 2024
- Premium account holders overwhelmingly appreciate their value
- Graph 32: proportion of respondents who think fee-paying current accounts offer good value for money, by types of current account – NET, 2024
- Providers need to better promote support services for vulnerable consumers
- People who have changed account providers are more likely to switch again
- Graph 33: likelihood of switching main current account in the next 12 months, by response to the statement “I have switched my main current account provider in the last two years”, 2024
- Dual-parent families are more likely to frequently seek better bank deals
- Graph 34: agreement with the statement “I check to see if I could get a better deal by switching my current account to a new provider at least every few months”, by lifestage, 2024
- Leverage trust in digital banks to attract frequent switchers
- Graph 35: agreement with the statement “I think that digital-only current account providers can provide the same level of customer service as those with branches”, by future intentions to switch, 2024
-
Innovation And Marketing Trends
- Competitive strategies
- Providers are competing on cash switching incentives…
- …and in-credit interest rates
- Launch activity and innovation
- Barclays pulls its switching offer
- Monzo launches new packaged accounts and plans a kids’ product
- Monzo introduces “known locations” security feature
- Advertising and marketing activity
- Current account advertising increases after a sharp decline in 2022/23
- Graph 36: total above-the-line, online display and direct mail advertising on current accounts, 2019/20-23/24
- Monzo is the biggest advertiser in current accounts
- Digital channels dominate ad spend in 2023/24
- Graph 37: total above-the-line, online display and direct mail advertising expenditure on current accounts, by media type, 2023/24
- Current Account Switch Service reassures potential switchers with its new advert
- Monzo and Greggs’ Sausage Roll ATM advert
- Starling Bank promotes its seamless tools for saving and budgeting
- Santander continues to lean on major celebrity partnerships
- Barclays shedding light on the youth world
- Nationwide’s fairer share payment for qualifying members
-
Appendix
- Report scope and definitions
- Market definition
- Abbreviations and terms
- Methodology
- Consumer research methodology
- Market size methodology data
- Market share definitions
- Nielsen Ad Intel coverage
Market Intelligence Made Easier With Mintel
The first Mintel Market Intelligence report was published over 50 years ago. Since then, we have provided our unique insights and understanding of consumers, innovation and global markets to thousands of customers worldwide. Here’s why our customers rely on Mintel:
- Gain a comprehensive, 360-degree view of the market: Mintel reports blend consumer research, market forecasts, product innovation tracking, and competitive analysis, allowing businesses to see every angle of their industry and identify new opportunities quickly.
- Make decisions with confidence, grounded in robust data: Each report draws on up-to-date, reliable information from trusted sources and industry experts, ensuring your strategies are based on solid evidence rather than speculation.
- Benefit from expert analysis and practical recommendations: Mintel’s reports are written by experienced analysts who interpret complex data and provide clear, actionable insights you can trust to guide your next moves.
- Stay ahead with actionable intelligence on market trends and consumer behaviour: By combining fresh research with long-term market monitoring, our reports help businesses anticipate changes and adapt strategically. So you’re prepared to make informed decisions and drive growth.
What goes into a Mintel Market Intelligence Report?
Curious about how a Market Intelligence report comes together? We like to think of it as building a detailed puzzle. We start with individual pieces: data from consumers, market statistics, industry trends, and online conversations. Then our expert analysts add world-class human insight and industry knowledge. The pieces are assembled to reveal a clear, comprehensive picture of a market.
The Four Pillars of Our Research
We use a combination of four main research methods when creating our reports, each adding a valuable perspective:
- Consumer Research: Direct surveys with real people, giving us clear, current insights into what people think and do.
- Desk Research: In-depth review of trusted data sources. We use this rich database, plus powerful internal tools that track new products and market sizes, to detect trends and guide forecasts.
- Trade Research: Insights from conversations with industry experts. Their real-world experience helps us understand what’s happening behind the scenes.
- Brand and Social Media Research: Analysis of online opinions and trends. This lets us spot trends, measure brand sentiment, and capture feedback in real time, adding further depth to our research.
Bringing It All Together
Each of these four pillars provides a different piece of the puzzle. Consumer research tells us what customers think, desk research provides the factual framework, trade research offers an insider’s view, and social media analysis reveals public sentiment.
Our expert analysts are skilled in weaving these diverse data streams together. They apply a range of quantitative and qualitative analysis techniques to uncover the deeper story, connecting the dots to deliver clear, actionable insights. This comprehensive, multi-layered process is how we transform raw data into a market intelligence report you can trust to inform your most important business decisions.
£ 2,195 (Excl.Tax)
-
Download today with instant access
Pay via credit card or invoice (net 30 payment terms)
-
Multiple formats provided
We send a PDF, Powerpoint and Excel Databook straight to your inbox. An interactive version of the report is also available on our online platform
-
Interactive databook included
Focus on the data that matters most to you with a customisable databook avaliable on our platform
-
Save up to 20% when you purchase multiple reports
Discount automatically applied in basket
Next Starts Here
Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.
Learn moreTrusted by global industry leaders
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.
Alana Gavin, VP Research and Insights, Jackman
There is no question that Mintel is the go-to resource for the best quality market research, but I did not think it was an affordable option for Abacus Marketing to consider. As a small marketing agency, we only work with a few new clients each year.
However, we have a very high-end consultative approach to our work, so we really do need a partner like Mintel to provide the big agency experience we are always aiming to deliver. Our clients come from an incredibly diverse range of industry sectors, so we obviously need access to market research reports from a very wide spectrum of marketplaces – and that is precisely what we got.
Stephen Taylor-Brown, Managing Director, Abacus
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.
Rebecca Green, Market Insight Manager, Wincanton
Working in a customer-obsessed organization means that data and insights have to be at our fingertips. Mintel’s reports help us support anecdotes with real quantifiable insights. The summary sections (which I really like) helps save time by giving a birds eye view of the content before spending time combing through the pages.
Our business review discussions are strengthened by the relevancy of the reports to help us better understand our customers. In addition, the customer service received from the team (especially in crunch periods) makes the process of understanding customer behavior even better.
Ngozi Ngonadi-Nkwoji, Senior Marketing Manager, Amazon
We’ve found it so useful working more closely with Mintel. They helped support our recent flagship event for our top suppliers by providing a really unique viewpoint on the future of online retailing.
Nick Carroll from their Retail Team was also an excellent panelist, sharing useful and actionable consumer insights. We definitely look forward to working with Mintel again on future projects.
Zac Steele, E-Commerce Trading Development Manager, Waitrose & Partners
Next Starts Here
Whatever your business needs, we have the solution. From market intelligence reports to customised growth strategies.
Learn more
