Challenger bank customers rise from 5 to 14% in four years

Alex Sword

Editor

The Financial Services Forum

The proportion of British adults using challenger banks has grown from 5% to 14% since 2020, according to figures from Kantar’s TGI data.

Around 6.7 million people have an account with Monzo, Revolut, Starling or Chase.

The research also found that users of challenger banks are 45% more likely to use credit and 23% more likely to have a desire to invest.

According to the findings, 40% of all British adults agree that online banks are just as trustworthy as traditional banks.

Charlie Gordon, Insight Director, TGI & Insight, Kantar Media: “The younger generations opening accounts with challenger banks are heavily influenced by advertising and introductory offers.

“They’re much less interested in the availability of staffed branches on high streets, and they perceive these banks to be just as trustworthy as traditional banks.

“Having a bank at their fingertips gives them a bolder approach to using credit.  They’re more engaged with investing, tend to trust their own ability to manage their money, and are more likely to be financially responsible – including when planning for retirement.

“All of this should be instructive for leaders at both traditional and challenger banks as they plan their product offering and marketing activity – because earning the younger generations’ trust and loyalty is key.

“Tapping into such insights will enable these banks to understand what makes their customer tick – so they are best placed to identify, track, and target potential customers with real impact.”

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