Among those who have accounts with all-digital banks such as Monzo, Revolut, Starling and Chase, 31% say they currently pay a monthly fee, while a further 17% say they have paid a fee in the past.
The UK Digital Banking Market has an established presence, with digital-only banks like Monzo and Revolut particularly popular among younger consumers but still facing challenges in capturing main account market share due to trust, security, and branch access concerns. Currently, digital banks are introducing innovations including AI-powered tools and expanding their product offerings to attract more primary account holders, particularly among younger demographics.
Younger demographics, especially Gen Z and younger millennials, show higher adoption of digital-only banks, attracted by their innovative mobile apps and AI-driven financial tools.
Many consumers use digital banks for savings, budgeting, and day-to-day spending, with digital bank customers showing higher adoption of fee-paying accounts compared to traditional banks.
Trust, security concerns, and the lack of physical branches remain significant barriers to adopting digital banks as primary accounts.
Mobile payments are becoming more popular, and there is rising interest in fee-paying accounts that offer added perks like travel benefits and exclusive discounts, which can be considered for strategies to gain digital banking market size.
The UK Digital Banking Market Report 2025 provides comprehensive insights into the digital banking market in the UK, offering valuable data on consumer behaviours, preferences, and market trends. It covers areas such as the adoption of digital-only accounts, the use of fee-paying tiers, consumer attitudes toward trust and security, and the increasing use of mobile payments and AI-driven banking tools. The research surveys a diverse demographic, including different age groups and banking habits, to understand the current needs of digital banking customers. This Digital Banking Market Report will benefit financial institutions, digital bank operators, marketers, and investors by offering strategic insights to drive innovation, customer acquisition, digital banking market share and retention in the competitive sector.
| Report Attributes | Details |
|---|---|
| Published Date | August 2025 |
| Data Range | 2019 – 2030 |
| Measurement Metrics | Revenue in £ |
| Country Focus | United Kingdom (UK) |
| Consumer Data | 1,950 internet users aged 16+, June 2025 |
| Number of Pages | 56 |
| Market Segmentation | Current Accounts, Digital Bank Accounts, Fee-Paying Accounts, Mobile Wallets, Online Wallets, Bank Transfers, Direct Debits, Prepaid/Gift Cards, Buy Now Pay Later Services, Investments, Savings Accounts. |
| Leading Companies | Monzo, Revolut, Chase, Starling Bank, Barclays, Lloyds Bank, Nationwide Building Society, HSBC, Halifax, NatWest, Santander, Bank of Scotland, First Direct, TSB, Royal Bank of Scotland (RBS), The Co-operative Bank, Virgin Money (including Clydesdale and Yorkshire Bank), Metro Bank. |
This report was written by Adrian Reynolds. Adrian has over a decade of experience working in research and insights. He joined the technology and media team in 2017, having previously worked as a TV analyst. Since January 2022, Adrian has focused on financial services and FinTech. He holds a BSc in Business Administration and a Master’s in International Business.
Digital banks have primarily been used as additional accounts. Alongside raising awareness, brands must incentivise customers to switch their main accounts.
Adrian Reynolds
Associate Director
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