A few years ago, digital-only banks like Monzo, Starling and Revolut felt unstoppable. They grew quickly, attracted millions of customers, and made traditional high-street banks look old-fashioned. But as we move through 2025, the picture is starting to change.
A new report from RFI (Retail Finance Intelligence) shows that digital banks’ share of “main bank” accounts slipped from 6% in 2023 to 5% in 2024. This is the first time their share has ever gone down. On top of that, only about half of UK adults used a digital-only bank in 2024, compared with the big rise we saw in earlier years (UK Tech News).
Why Are Digital Banks Slowing Down?
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High-street banks are pushing back. Traditional banks have improved their apps and are offering cashback and deals to keep customers.
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Growth has levelled off. After fast growth from 2021 to 2022, things are now steady rather than rising.
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People are switching back. Many customers return to the banks they know once the “new” feeling of digital fades.
How Data Insights Could Change the Game
The future for digital banks doesn’t have to be bleak. If they make better use of customer data—fairly and transparently—they can stand out and rebuild trust. Here’s how:
| What Data Can Do | Why It Matters |
|---|---|
| Understand behaviour | Spot what customers really need—like saving tools or budgeting alerts—and personalise services. |
| Predict churn | Use patterns to see when people might leave and step in with support before they do. |
| Promote fairness | Check data to make sure products aren’t leaving out older people, rural areas, or other overlooked groups. |
| Show regulators the facts | Use anonymised insights to prove that digital banks support inclusion and should have fair rules, not stricter ones than high-street rivals. |
If done well, data becomes less about tracking—and more about helping people make the most of their money.
In Short
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What’s happening: Digital banks in the UK lost ground in 2024 for the first time, it could be because of government laws, especially immigration policy.
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Why it matters: High-street banks are catching up, and customers are slowing down their switch.
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The opportunity: Smarter, fairer use of data can help digital banks win trust, grow steadily, and serve people better.
#DigitalBanking #FintechUK #BankingMadeSimple #DataForGood #UKFinance #EthicalTech #CustomerFirst
Source: UK Tech News – Is the tide going out for Britain’s digital banks?
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