BuyShares indicate UK banks are leading in global net gain

Data presented and calculated by BuyShares indicates that UK challenger banks are leading in new customer net gains through account switches with a share of 42.99% Year-to-Date. All banks recorded a collective net gain of 203,947 in new customers.

BuyShares: Challenger banks benefit from pandemic

The two challenger banks, Monzo and Starling have a cumulative net gain of 87,683 new customers. Monzo has the highest net gain of 51,285 while Starling net gain stands at 36,398. During Q3, both Monzo and Starling were the biggest net gainers with 11,392 and 11,998 customers respectively.

The research also highlighted the reasons behind the rising interest in challenger banks. According to the research report:

“This year has also been unique for challenger banks due to the coronavirus pandemic. As one of the most hit regions in Europe, the UK authorities encouraged citizens to turn to digital banking. Such banking was deemed safe because customers can make payments without moving and interacting in banking halls. Furthermore, authorities discouraged the use of physical money to curb more infections.”

The research also overviewed the biggest losers of the UK’s current account switches in 2020. Halifax is the biggest loser at 55,338. Danske has lost the least customers at 1,134.

The Buy Shares report also reviewed the reasons why U.K citizens prefer digital banking. About 41% find banking online more convenient, while 39% like the digital banks’ rates. Another 28% are attracted to free transactions abroad.

BuyShares: The rise of challenger banks in 2020

In the United Kingdom banking scene, the Current Account Switch Service enables customers to switch their current accounts from one participating bank to another.

The service has a reputation for being straightforward, reliable, and hassle-free. It is backed by the Current Account Switch Guarantee, the law that established the switch service.

From the data, UK leading challenger banks Monzo and Starling are winning the switching competition. This highlights the fast-growing nature of the digital banking scene in the United Kingdom.

Factors like convenience and good customer services are acting as a significant catalyst for the switch. Furthermore, these banks attract lucrative welcome bonuses for new customers as one way of taking on leading established traditional banks.

The banking sector has experienced minimal switches in the past due to the lack of variety in the market. However, challenger banks are coming up with a different product capable of driving more customers.

Additionally, positive news about Fintech and industry disruption is helping more challenger banks spur interest among new customers.

With increasing press around Fintech, the general population is increasingly becoming familiar with the challenger banks’ concept and its benefits.

This year has also been unique for challenger banks due to the coronavirus pandemic. As one of the most hit regions in Europe, the UK authorities encouraged citizens to turn to digital banking.

Such banking was deemed safe because customers can make payments without moving and interacting in banking halls. Furthermore, authorities discouraged the use of physical money to curb more infections.

The full story, statistics, and information can be found here: https://buyshares.co.uk/monzo-and-starling-gain-almost-100k-customers-via-current-account-switches-in-2020/

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