The race between UK neobanks and traditional legacy banks is heating up, with neobanks set to surpass their older counterparts in lifetime Android app downloads by the first quarter of 2025, according to a recent study by SplitMetrics.
This shift indicates a significant turning point in the UK FinTech landscape, highlighting the rapid adoption of digital banking services among consumers.
In the first half of 2024, UK neobanks have added an impressive 9.5m new Android users, 81% more than the 4m new users garnered by legacy banks. This surge has brought neobanks within a striking distance of legacy banks, with only a 6m user gap between them. Currently, neobanks stand at 62m lifetime downloads on the Google Play Store, compared to the 68m downloads of legacy banks.
The trend of digital-first banking solutions gaining popularity isn’t confined to the UK; it’s a pan-European phenomenon. UK FinTech firms alone accounted for 50% of all new European mobile banking Android downloads in the first half of 2024. Overall, Android banking apps have witnessed a 23% increase in downloads in early 2024, with predictions suggesting that the year could set new records with potentially over 34m downloads.
Leading the charge in this digital banking revolution is Revolut, which has added 7.9m users in H1 2024 alone, representing 41% of all new banking app downloads during this period. Other significant contributors include Santander Spain, Monzo, Credit Agricole, and Lloyds, showcasing a robust growth trajectory across the board.
SplitMetrics General Manager Thomas Kriebernegg remarked on the findings, stating, “Neobanks had a strong start to 2024 and are moving ever closer to closing the gap with legacy banks, especially in the UK.” He further added, “UK banking fintechs are growing at a much faster pace than legacy banks quarter-to-quarter, and account for an impressive 50% of all new banking app users in the first half of 2024.”
As UK neobanks continue to innovate and capture the market, the competition with legacy banks is poised to intensify. The evolving dynamics in the FinTech sector underscore the necessity for ongoing innovation and strategic app marketing campaigns to attract and retain users in an increasingly crowded marketplace.
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